Divorce and Finances – changes on the horizon?

Going through a divorce is often a hugely stressful and emotionally challenging period for any couple. Every year, tens of thousands of couples begin divorce proceedings and require a financial order recording how their assets are to be divided at the conclusion of their divorce.

Our team of divorce lawyers in Milton Keynes can guide you through all the details about how assets are divided in a divorce. In the meantime, this article provides a useful summary of some of the changes which are currently being considered.

The Law Commission of England and Wales, the parliamentary body tasked with ensuring laws are reviewed regularly, has launched an investigation into assessing the options for reforming the laws which currently govern how financial matters should be handled between separating couples on divorce.

The project will consider the use of court orders for financial provision between couples at the end of their marriage. Presently, the court would consider the Matrimonial Causes Act 1973, as the basis for determining how assets might be divided upon divorce.

The Government has asked the Law Commission to review whether this current law is delivering fair and consistent outcomes for divorcing couples and working effectively.

As part of its two year long review, the Law Commission is expected to carry out a detailed analysis of the current laws on financial remedies in this and other jurisdictions, identify any problems with the current legal framework in this jurisdiction that may benefit from legal reform, and propose alternative options for the shape those potential reforms may take.

As part of its investigation into the existing law, the Law Commission will also consider whether there is potential for reform in specific areas such as:

• Whether the current factors (s.25 Matrimonial Causes Act 1973) taken into consideration when making an order are comprehensive enough to assist the court or require updating in any way

• Whether to curb the current level of discretionary powers available to the court to divide assets in favour of a clearer set of guiding principles, in order to give greater certainty to divorcing couples

• Whether the courts should have broader powers to make orders for dependent children of the family that are aged 18 and over

• Maintenance payments for a spouse and whether these should be capped in any way

• Whether the court should be attaching greater weight to the conduct and behaviours of separating couples, reflected in the terms of any final financial order

• The structure of the system for making regular financial payments from one person to another after divorce

• The factors judges must consider when deciding which, if any, financial remedy orders to make

The current law has been around for half a century and is ripe for review. Areas such as the term of spousal maintenance payments, greater certainty for those with pre-nuptial agreements and greater consistent judicial interpretation of concepts such as “need”, “non-matrimonial assets” and how pensions might be shared are of increasing importance in the era of under resourced courts and no-fault divorce. Separating couples could benefit from greater transparency and certainty to assist them in determining how their assets might be divided upon separation.

Ready to take the next step? As leading divorce lawyers in Milton Keynes, our team of family law specialists can advise and guide you from the moment we start working with you. We also have offices in in Bicester, Watford and London. Talk to us in confidence and find out where you stand. Get in touch – we’re here to help.

This article is intended for the use of our clients and other interested parties. The information contained in it reflects the author’s view and is believed to be correct at the date of publication. However, it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional legal advice.