Reform to finances on divorce

On 18 December 2024 the Law Commission published its much-anticipated report on the Matrimonial Causes Act 1973.

The Law Commission concluded that the fifty-year old legislation, which governs how finances are dealt with by the Courts in divorce proceedings, was not delivering fair and consistent outcomes.

It did not clearly tell couples how their case would be decided and did not provide a cohesive framework in which a fair or sufficiently certain outcome could be achieved.

Wide discretion for a Court currently resulted in spouses, even when legally advised, being given different expectations about outcomes, making it harder for them to reach a settlement. For couples without the benefit of legal advice this could be even more problematic.

The Report also explored other areas that require attention, such as nuptial agreements, spousal maintenance, conduct and pensions.

However, although the Report cries out for reform, that reform won’t happen anytime soon: not before 2026 at the earliest. The Government now needs to provide an interim response to the Report within 6 months and a full response within a year. There will also need to be a public consultation, which will take time.

We keep abreast of changes to the law as they happen: if you want a team behind you who know all the ins and outs, please do contact Battens and we’d be delighted to help.