Financial Orders: How are finances dealt with on divorce?

Divorce is a complex and emotionally charged process, often compounded by the intricate task of dividing finances. From joint assets and liabilities to determining spousal support and child maintenance, the financial aspects of divorce can be overwhelming. In this blog, we’ll shed light on how finances are dealt with during divorce proceedings. Exploring common strategies for asset division, legal considerations and financial implications, we aim to provide clarity and guidance for individuals navigating this challenging transition.

What is taken into account when considering the financial order?

The court takes various matters into account when considering what financial order should be made. First consideration is given to the welfare of any children of the family under the age of 18. The most important aspect to understand are the Section 25 factors. This is a list of issues to be considered by the court in all financial cases (provided for in The Matrimonial Causes Act 1973).

These factors are not ordered in priority but have to be addressed in every case, whether it is being dealt with by agreement or at court:

1. The income, earning capacity, property and other financial resources which each spouse 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 be, in the opinion of the Court, reasonable to expect a person to take steps to acquire.
2. The financial needs, obligations and responsibilities, which each spouse has or is likely to have in the foreseeable future.
3. The standard of living enjoyed by the family before the breakdown of the marriage.
4. The ages of each spouse and the duration of the marriage.
5. Any physical or mental disability of each spouse.
6. The contributions which each spouse has made or is likely to make in the foreseeable future to the welfare of the family, including any contribution by looking after the home or caring for the family.
7. The conduct of each spouse, if that conduct is such that it would in the opinion of the Court be inequitable to disregard.
8. The value to each spouse of any benefit which one spouse, because of the divorce, will lose the chance of acquiring (most usually pension provisions).

The overriding factor in most cases is the reasonable needs of yourself and your spouse, along with the children. 

Is Child Maintenance considered?

In most cases, the Courts no longer have power to make orders for child maintenance (unless by consent); an application to the Child Maintenance Service has to be made for child maintenance to be assessed.

How can Taylor Bracewell’s Family team assist you with your financial matter?

Should you have any queries in relation to financial matters or any other family matter please contact the family team on 01302 341414 or 0114 272 1884, alternatively, you can fill out our online enquiry form.