Overview

This bill aims to reform the financial settlement process following divorce in England and Wales by prioritizing the equal sharing of matrimonial property and limiting the consideration of parties' conduct. It also seeks to increase the weight given to prenuptial and postnuptial agreements, provided certain conditions are met.

Description

The bill amends the Matrimonial Causes Act 1973. Key changes include:

Matrimonial Property

The bill defines "matrimonial property" as assets acquired during the marriage, excluding gifts or inheritances. It mandates a fair and usually equal sharing of this property's net value between divorcing parties, with exceptions for cases of unfairness, such as property destruction or the needs of children. Pre-nuptial and post-nuptial agreements will be binding unless certain conditions are not met (lack of independent legal advice, insufficient disclosure of assets, etc.).

Periodic Payments and Lump Sums

The bill outlines factors to consider when determining periodical payments, emphasizing the fair sharing of economic burdens related to child care and enabling dependent spouses to adjust financially post-divorce. Such payments will generally be limited to a maximum of five years, unless exceptional circumstances are proven.

Conduct

The bill generally restricts the court's consideration of a party's conduct in financial settlements, unless the conduct significantly impacted the financial resources of a party or excluding it would be manifestly unfair.

Government Spending

The bill doesn't directly specify changes to government spending. The impact on government spending would be indirect, potentially affecting legal aid budgets or other related social services due to changes in the legal framework surrounding divorce settlements.

Groups Affected

Groups potentially affected include:

• Divorcing couples: Will experience changes in how their assets are divided and the weight given to pre-nuptial and post-nuptial agreements.
• Children of divorcing couples: Their needs will be a factor in determining financial settlements.
• Legal professionals: Will need to adapt their practices to the new legislation.

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