Overview

This bill amends the Matrimonial Causes Act 1973, changing how financial settlements are handled after divorce in England and Wales. It prioritizes a fair division of marital assets, gives more weight to pre-nuptial and post-nuptial agreements, and limits the consideration of parties' conduct.

Description

The bill significantly alters the principles governing financial orders in divorce cases. Key changes include:

Matrimonial Property

The bill defines "matrimonial property" as assets acquired during the marriage, excluding gifts or inheritances. It mandates a generally equal sharing of this property's net value, with exceptions for unfairness, such as destruction of assets by one party or the needs of children under 21. Pre-nuptial and post-nuptial agreements will be given greater weight, unless specific conditions aren't met (e.g., lack of independent legal advice).

Pre-nuptial and Post-nuptial Agreements

Written and signed agreements made before or after marriage will generally be binding unless one party lacked independent legal advice, proper disclosure of assets wasn't made, or the agreement is otherwise legally unenforceable.

Periodical Payments

The bill outlines factors the court must consider when determining periodical payments, including economic contributions during the marriage (including non-financial contributions such as childcare), the duration of dependence, and the recipient's ability to become self-sufficient. Such payments generally cease upon the death or remarriage of the recipient, save for any arrears.

Conduct

The bill limits the court's consideration of a party's conduct, only considering it if it has adversely affected the financial resources of a party or if excluding it would be manifestly unfair.

Government Spending

The bill is unlikely to have a significant direct impact on government spending. The changes primarily affect the way courts handle financial divisions in divorce cases, not government expenditure directly. Any potential costs would likely be indirect, such as increased court workloads associated with evaluating prenuptial agreements.

Groups Affected

• Divorcing couples: The bill directly affects how assets are divided, potentially impacting the financial outcomes for both parties.
• Children of divorcing couples: The bill considers the needs of children under 21 when determining financial settlements.
• Legal professionals: The bill will likely increase demand for legal advice relating to pre-nuptial and post-nuptial agreements.
• Judges and Courts: The bill places a heavier burden on the courts to evaluate the validity and terms of prenuptial agreements.

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