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DIVORCE - THE NEW RULES
New legislation means that couples who are divorcing may no longer expect a 50:50 split of assets.
Divorce New legislation means that couples who are divorcing may no longer expect a 50:50 split of assets. The legislation is being introduced in an attempt to cut the legal costs of the 300,000 people who go through the divorce courts each year.
Split It is not uncommon for the costs of actions to exceed the value of all the couple's assets. The aim is to promote fairness rather than an equal split - which may mean that in-depth investigative work is needed when one half of a couple does not honestly disclose the value of their assets.
Traditionally, (under the Matrimonial Causes Act 1973) courts would consider the following (and other) factors:
Needs of the parties
Income and Earning Capacity Financial Obligations of each party (now and future)
Ages, Health and Standard of Living
Pre-Nuptial Agreements
The new legislation will effectively consider financial splits in the following criteria:
Where assets do not exceed needs: Where assets exceed needs
Housing of the parent who has care of the children
Then distribution of assets according to needs and in proportion to each party's ability to meet those needs
Needs of each party
Contributions of husband and wife
Non-financial contributions of a homemaker and/or child carer
Money or capital brought to the marriage
Some recent court rulings have caused confusion and led to inconsistent rulings - the legislation is designed to produce a greater consistency
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