InvestmentsApr 11 2022

Will the introduction of no-fault divorce impact financial settlements? 

  • Describe some of the changes to the divorce system
  • Explain how the courts treat divorcing couples
  • Identify the impact behaviour has on the courts' decision
  • Describe some of the changes to the divorce system
  • Explain how the courts treat divorcing couples
  • Identify the impact behaviour has on the courts' decision
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Approx.30min
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Will the introduction of no-fault divorce impact financial settlements? 
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This case is a warning to all parties considering their position regarding their spouses’ conduct. It appears from the case of OG vs AG that you may do more harm than good when pursuing this line of argument and that you must be very careful not to be too overzealous. 

What is considered when determining how assets should be split?

While a court can consider conduct, it is fair to say that it is a tough argument to make, and the court is not eager to allow parties' conduct to affect the overall result. 

Section 25 of the Matrimonial Causes Act 1973 sets out a list of the factors the court will consider: 

  • The income, earning capacity, property and other financial resources that each of the parties to the marriage has, or is likely to have in the foreseeable future. In the case of earning capacity, this includes any increase in that capacity which it would, in the opinion of the court, be reasonable to expect a party to the marriage to take steps to acquire. 
  • The financial needs, obligations and responsibilities that each of the parties in the marriage has or is likely to have in the foreseeable future. 
  • The standard of living enjoyed by the family before the breakdown of the marriage. 
  • The age of each party to the marriage and the duration of the marriage. 
  • The physical or mental disability of either parties to the marriage. 
  • The contributions that each of the parties has made or is likely in the foreseeable future to make to the welfare of the family, including any contributions of looking after the home or caring for the family. 
  • The conduct of each of the parties – if that conduct is such that it would be, in the opinion of the court, inequitable to disregard it.
  • In the case of proceedings for divorce or nullity of marriage, the value to each of the parties to the marriage of any benefit which by reason of the dissolution or annulment of the marriage that party will lose the chance of acquiring. 
  • The effect that any financial award may have on any children relating to the proceedings. 

The court will consider all of these factors and give appropriate weight to each of them before determining what a fair outcome is. Meeting each party's needs being the magnetic factor in any settlement. 

 While a court can consider conduct, it is fair to say that it is a tough argument to make, and the court is not eager to allow parties' conduct to affect the overall result. 
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