Family Services
Resolving Financial Matters on Divorce
The term ‘Ancillary Relief’ covers all financial matters arising from a divorce. There is a wide range of ways in which assets can be divided on divorce. You and your spouse have identical financial claims against each other as a result of your marriage which can be grouped under four headings:
- Adjustment of property ownership and other assets
- A lump sum (ie capital payment)
- Pensions
- Maintenance (ie income payment)
The aim in resolving financial matters is to reach an agreement which would be considered fair in the eyes of the court. In order for any agreement you and your spouse reach to be binding, this needs to be drafted into a court order (called a Consent Order) and the terms approved by the court.
In determining what is ‘fair’ the court will consider all the factors of your marriage and all the assets which exist. The court has a specific list of factors it will refer to, contained in Section 25 of the Matrimonial Causes Act 1973.
- The income, earning capacity, property and other financial resource which
each of the parties to the marriage has, or is likely to have in the foreseeable
future, including in the case of earning capacity 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 which each of the
parties to 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.
- Any physical or mental disability of either of the parties to the marriage.
- The contributions which each of the parties has made or is likely in the
foreseeable future to make to the welfare of the family, including any contribution
by looking after the home or caring for the family.
- The conduct of each of the parties, whatever the nature of the conduct
and whether it occurred during the marriage or after the separation of the
parties or (as the case may be) dissolution or annulment of the marriage,
if that conduct is such that it would in the opinion of the court be 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 (for example, a pension)
which, by reason of the dissolution or annulment of the marriage, that party
will lose the chance of acquiring.
- In cases where there are young children, the Court’s first concern will
always be the welfare of those young children and how their needs will be
met. In reality, the decisive factor in the majority of cases is the reasonable
needs of the parties and the children of the family
