Overview

This bill amends the Matrimonial Causes Act 1973 to reform the way financial settlements are handled after divorce in England and Wales. It introduces significant changes to how pre-nuptial and post-nuptial agreements are treated, alters the rules around property division, and limits the duration of periodical payments.

Description

The bill makes several key changes:

• Pre-nuptial and Post-nuptial Agreements: These agreements will be legally binding unless specific conditions aren't met (lack of independent legal advice, insufficient disclosure of assets, etc.). Courts can only deviate from the agreement if it's not fair.
• Matrimonial Property: A principle of equal sharing of matrimonial property is established. However, there are exceptions based on factors like the source of funds, destruction or dissipation of assets, children's needs, and costs associated with the divorce.
• Periodical Payments and Lump Sums: Periodical payments (ongoing maintenance) are limited to a maximum of three years. The court will consider factors like economic contributions made by each party, the financial burden of childcare, and the need to alleviate hardship.
• Conduct: A party's behavior is generally irrelevant to the financial settlement, unless it significantly impacts financial resources or ignoring it would be grossly unfair.

Government Spending

The bill does not explicitly state the impact on government spending. The changes could lead to reduced court workload if pre-nuptial agreements are more frequently used and less litigation arises. However, increased demand for legal advice related to prenuptial agreements could indirectly create a financial burden on individuals.

Groups Affected

The following groups will be affected:

• Divorcing couples: The bill significantly impacts how their assets and finances are divided, particularly if pre-nuptial or post-nuptial agreements exist.
• Children of divorcing couples: The court will consider their needs when dividing assets and awarding financial support.
• Solicitors and legal professionals: Increased demand for legal advice regarding pre-nuptial agreements and divorce settlements.

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