Overview

This bill aims to reform the law in England and Wales regarding financial settlements after divorce. It seeks to achieve fairer outcomes by focusing on the equal division of matrimonial assets and strengthening the role of pre-nuptial and post-nuptial agreements while limiting the consideration of individuals' conduct.

Description

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

Matrimonial Property

The bill defines "matrimonial property" as assets acquired during the marriage, excluding gifts and inheritances. It prioritizes an equal split of the net value of this property, allowing for exceptions only in cases of unfairness (e.g., asset destruction, children's needs).

Pre-nuptial and Post-nuptial Agreements

Pre-nuptial and post-nuptial agreements will generally be legally binding unless specific conditions are not met, such as lack of independent legal advice or inadequate asset disclosure.

Periodical Payments

The bill sets guidelines for periodical payments (spousal maintenance), considering factors such as economic contributions during the marriage, the care of children, and the need for the dependent spouse to adjust financially. Such payments are capped at 5 years unless exceptional circumstances exist.

Conduct

The bill significantly restricts the consideration of a party's conduct in financial decisions, unless it directly impacted financial resources or ignoring it would be manifestly unfair.

Government Spending

The bill is not expected to directly increase or decrease government spending. The changes relate to the court proceedings and the financial settlements between divorcing parties.

Groups Affected

• Divorcing couples: This bill significantly impacts how assets are divided in divorce proceedings, potentially leading to fairer outcomes and more predictable settlements.
• Legal professionals: Solicitors and barristers will need to adapt their practice to the new legal framework and advise clients on the implications of the changes.
• Judges and courts: The courts will need to apply the new rules and criteria when adjudicating divorce cases.

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