An overhaul of divorce law?

The government announced this week that it is going to review the legal provisions which determine how financial assets are split in the event of a divorce.?The Matrimonial Causes Act 1973 sets out various provisions which the court takes into account but judges can use their discretion in each case which can lead to a lot of uncertainty for couples going through the divorce process.?The government is consulting with the Law Commission, which is the independent agency which reviews legislation, to see whether the Matrimonial Causes Act needs updating.

Currently in England and Wales, when looking at how to divide wealth between spouses, the starting point is always an equal division of capital and pensions. ?The court would then look at various factors such as the parties needs, earning capacity, standard of living, ages and contributions to determine whether an equal division is fair or should be adjusted in one person’s favour. The English system of division is in contrast to many other European counties, and there can even be regional variations with different parts of the country tending to make more generous awards than others.?

There is concern that the law does not reflect the changes in society in the last 50 years – its is now the norm for both spouses to work for example rather than one being the breadwinner and the other having no income.?It is likely to be a couple of years before there is any progress with this issue due to the time it takes for laws to be considered and reformed.?

There are still options for couples to try and set out a clear position in the event of divorce by way of pre and post nuptial agreements.?These agreements set out what the couple intend to happen to their money and property in the event that the marriage breaks down.?The aim is to then avoid the court having to make a decision which can lead to unnecessary stress and high legal fees.?

Whilst not strictly binding in England and Wales, pre and post-nuptial agreements are being taken into account more and more in the event of a divorce.?Whilst the court still has complete discretion when looking at financial matters, if the pre or post-nuptial agreement has been entered into and executed correctly, and the terms are deemed to be fair, it should carry great weight.?It is really important that each party takes legal advice and that there is an exchange of financial disclosure so they are fully aware of each other’s financial circumstances.?A pre-nuptial agreement should also be finalised in good time before the wedding so that there can be no claim of duress.

For tailored advice, please contact Julia Lee in the Family Team at Knights about this or any other family law related issue.?Contact details: julia.lee@knightsplc.com or 07469856077.