Overview

This bill amends the Matrimonial Causes Act 1973, reforming the way financial settlements are handled after divorce in England and Wales. It focuses on a fairer distribution of matrimonial assets, prioritizes 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 proceedings. Key changes include:

• Matrimonial Property Focus: Financial orders will primarily be limited to "matrimonial property"—assets acquired during the marriage, excluding gifts or inheritances. Exceptions exist for assets used to increase the value of matrimonial property or for assets where one party significantly enhanced its value via exceptional skill or effort.
• Pre-nuptial and Post-nuptial Agreements: These agreements will be legally binding unless specific conditions are not met (e.g., lack of independent legal advice, inadequate disclosure of assets, or agreements made less than 21 days before marriage).
• Equal Sharing Principle: The bill establishes a principle of equal sharing of the net value of matrimonial property, with exceptions for situations deemed unfair by the court (e.g., destruction of assets, needs of children).
• Periodical Payments: The bill sets out factors the court must consider when awarding periodical payments, including economic contributions, childcare burdens and the dependent party's adjustment to life after divorce. These payments would typically cease on remarriage or death.
• Limited Role of Conduct: The bill significantly restricts the consideration of the parties' conduct in financial proceedings, except in specific situations where conduct materially impacts resources or when ignoring it would be manifestly unfair.

Government Spending

The bill is not expected to significantly impact government spending. The changes primarily concern the distribution of assets within divorcing couples, not direct government expenditure.

Groups Affected

• Divorcing Couples: The bill will directly affect how financial assets are divided during divorce, potentially leading to more predictable outcomes based on the equal sharing principle and the increased weight given to pre-nuptial agreements.
• Children of Divorcing Couples: The needs of children under 21 are a factor in determining an unequal share of assets.
• Solicitors and Legal Professionals: The bill will increase the importance of legal advice regarding pre-nuptial agreements.

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