After four years of separation, Charles, Prince of Wales and heir to the British throne, and his wife, Princess Diana, formally divorce on 28 august 1996.
Diana and Charles announced a separation in 1992, though they continued to carry out their royal duties. In August 1996, two months after Queen Elizabeth II urged the couple to divorce, the prince and princess reached a final agreement. In exchange for a generous settlement, and the right to retain her apartments at Kensington Palace and her title of “Princess of Wales,” Diana agreed to relinquish the title of “Her Royal Highness” and any future claims to the British throne.
The divorce was finalised on 28 August 1996. Diana received a lump sum settlement of £17 million as well as £400,000 per year. The couple signed a confidentiality agreement that prohibited them from discussing the details of the divorce or of their married life.
Buckingham Palace stated the Princess of Wales was still a member of the Royal Family, as she was the mother of the second and third in line to the throne. This was confirmed by the Deputy Coroner of the Queen’s Household, Baroness Butler-Sloss, after a pre-hearing on 8 January 2007: “I am satisfied that at her death, Diana, Princess of Wales continued to be considered as a member of the Royal Household.