The Family Mediation Voucher Scheme is being extended until April 2025.
It provides separating couples with vouchers worth up to £500 towards the cost of family or divorce mediation.
This is costing the government another £15 million. So far, the scheme has supported over 15,000 families.
Nearly 70 percent of people who tried mediation have had their cases either partly agreed to or agreed to in full without going to court.
The increased use of mediation should lead to better outcomes for couples, which is expected to save the government money in the long term.
Mediation also provides a cheaper solution for couples to resolve disputes as it avoids running up big legal bills.