Overview

This bill aims to reform the rules on financial settlements after divorce in England and Wales. It primarily focuses on ensuring a fairer and more predictable division of assets, giving greater weight to pre-nuptial and post-nuptial agreements, and clarifying the role of conduct in determining financial orders.

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 and inheritances. It promotes an equal split of this property's net value unless unequal sharing is deemed fair due to factors like the destruction of assets, children's needs, or valuation costs. Pre- and post-nuptial agreements are given significant weight, but only if certain conditions are met, including independent legal advice and full disclosure of assets. Exceptions allow for unequal division in specific circumstances, such as a party’s exceptional contribution to the growth of non-matrimonial assets.

Periodical Payments

The bill sets out factors for the court to consider when determining periodical payments (ongoing maintenance), including economic advantages/disadvantages from contributions during the marriage and the need for a dependent spouse to adjust to a loss of financial support. These payments are generally limited to a maximum of five years unless exceptional circumstances warrant an extension.

Conduct

Generally, the conduct of the parties is not to be considered unless it significantly affected the financial resources of one party or excluding it would be manifestly unfair.

Agreements

Pre-nuptial and post-nuptial agreements are given considerable weight, but will only be considered binding if the parties received independent legal advice, made full financial disclosure and were not unduly pressured into signing.

Government Spending

The bill doesn't directly specify changes to government spending. The impact is likely to be indirect, potentially affecting court resources through increased complexity of cases or a decrease depending on the volume of cases.

Groups Affected

• Divorcing couples: The bill significantly impacts how assets are divided, potentially leading to more predictable outcomes but also creating greater legal complexities.
• Children of divorcing couples: Their needs are a factor in determining asset division and periodical payments.
• Family lawyers: The bill's complexities may increase demand for legal services.
• Judges: The bill will impact how judges make decisions in divorce cases.

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