Overview

This bill aims to reform the financial settlement process following divorce in England and Wales. It seeks to prioritize fairness and the equal sharing of matrimonial assets, while also considering pre-nuptial and post-nuptial agreements and the needs of children.

Description

The bill amends the Matrimonial Causes Act 1973, significantly altering how courts handle financial orders in divorce cases. Key changes include:

Matrimonial Property

The bill defines "matrimonial property" as assets acquired during the marriage, excluding gifts or inheritance. It emphasizes an equal sharing principle, unless an unequal division is deemed fair due to factors like pre-nuptial agreements, asset destruction, children's needs, or valuation costs. Exceptions are made for assets acquired before the marriage but used to increase the value of matrimonial property.

Pre-nuptial and Post-nuptial Agreements

The bill makes pre-nuptial and post-nuptial agreements legally binding, unless certain conditions aren't met (lack of independent legal advice, insufficient disclosure of assets, etc.). If binding, the court can only issue financial orders to address matters not covered by the agreement.

Periodical Payments and Lump Sums

The bill clarifies considerations for periodical payments (ongoing support) and lump sums, focusing on fairness in economic burden sharing, economic disadvantages from contributions during marriage, and reasonable adjustment periods for dependent spouses (up to five years unless exceptional circumstances are shown).

Conduct

Generally, the conduct of the parties will not be considered unless it directly affected the financial resources involved or disregarding it would be manifestly unfair.

Government Spending

The bill is not expected to have a significant direct impact on government spending. Any costs would likely arise from increased court workload associated with interpreting and applying the new legislation.

Groups Affected

This bill will affect:

• Divorcing couples: Their financial settlements will be determined by the new principles outlined in the bill.
• Children of divorcing couples: Their needs will be considered when determining financial orders.
• Solicitors and family law professionals: They will need to adapt their practice to the new legal framework.
• Judges: They will need to apply the new rules in divorce proceedings.

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