Overview

This bill amends the Matrimonial Causes Act 1973, changing how financial settlements are handled after divorce in England and Wales. It aims to increase the enforceability of pre-nuptial and post-nuptial agreements and to clarify the principles for dividing assets and awarding spousal maintenance.

Description

The bill makes several key changes:

• Pre-nuptial and Post-nuptial Agreements: These agreements will be considered legally binding unless specific conditions aren't met (e.g., lack of independent legal advice, inadequate disclosure of assets, less than 21 days before the marriage, or unenforceable under contract law).
• Division of Matrimonial Property: The bill prioritizes an equal split of assets acquired during the marriage, but allows for exceptions in specific circumstances such as pre-nuptial agreements, the source of funds, destruction of assets, or the needs of children.
• Spousal Maintenance (Periodical Payments and Lump Sums): Maintenance payments are limited to a maximum of three years. Awards are only made if transferring property is considered insufficient or inappropriate.
• Considerations for Maintenance: The court will consider economic contributions (direct or indirect), the economic burden of child care, and the need for a dependent spouse to adjust financially post-divorce (limited to three years). Factors such as age, health, earning capacity and resources of both parties will be considered.
• Conduct: A spouse's conduct will only be considered if it impacts financial resources or if it's manifestly unfair to disregard it.
• Children: The bill emphasizes the needs of children when dividing assets and awarding maintenance.

Government Spending

The bill is unlikely to have a significant direct impact on government spending. The changes primarily affect the legal processes and outcomes of divorce settlements, not direct government expenditure.

Groups Affected

• Divorcing Couples: The bill significantly impacts how assets are divided and spousal maintenance is awarded, potentially altering financial outcomes for both parties.
• Children of Divorcing Couples: Their needs are prioritized in the bill's provisions regarding asset division and maintenance.
• Solicitors and Family Lawyers: The changes will affect their practices and advice to clients.

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