Review of the law determining how finances are divided after divorce

Amelia Smith is a Trainee Solicitor in the Family Team here at Wollens and has put together this helpful guide in relation to the Law Commission Review.

What is the announcement in respect of the Law Commission?

They are launching a review of the laws which determine how finances are divided among couples after divorce or the dissolution of a civil partnership.

What Act will this review potentially change and why?

The Matrimonial Causes Act 1973, which has been in place for 50 years. It is important that the law reflects the changes in society. The principles of fairness that reflected society in 1973 is vastly different from those that operate today.

What will the review consider? 

1. The use of financial remedy orders (orders for financial provision between couples at the end of their marriage or civil partnership); and
2. Generally whether the current law is working effectively and delivering fair and consistent outcomes for divorcing couples.

What are the potential areas for reform? 

1. The powers given to Judges over the division of financial assets and whether there is a need for a clear set of principles to give more certainty to divorcing couples.
2. Whether there should be wider powers given to Court to make orders for children over the age of 18.
3. How maintenance payments for an ex-spouse or civil partner should work.
4. What consideration the courts should give to the behaviour of separating parties when making financial remedy orders.
5. Orders relating to pensions and whether they are overlooked when dividing the party’s assets.
6. The structure of the system for making regular financial payments from one person to another after the divorce.
7. The factors judges must consider when deciding which (if any) financial remedy orders to make.

Will the review just consider the financial orders made by Courts in England and Wales?

Mainly England and Wales, but other countries too.

 What is the aim of the review?

To ensure the laws governing financial provision on divorce or the ending of a civil partnership are fair and as simple as possible, minimising the risk of conflict, uncertainty and financial strain.

When will the review conclude and a report published?

The aim is by September 2024 and it could provide the basis for a full review and future financial remedies reform.

Speak to Amelia Smith

Amelia is a Solicitor at Wollens and can advise you. Contact Amelia via email Amelia.Smith@wollens.co.uk or call 01803 225170.

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You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.