How Will The Family Court Distribute Assets and Income on Divorce?

This article introduces the Family Courts considerations when they distribute assets and income on divorce.

Right, where to start.

Okay, so many people wrongly assume that there is one set regimented formula for calculating the financial distribution on divorce. This is not the case. However, do not worry, it does not mean that it is a case of ‘wild west’ chaos. In fact, our system is effective and probably more so than many other jurisdictions.

Well, firstly, remember, the Family Court has a duty to consider all of the circumstances of the case and they will primarily consider the welfare of your children (under 18 years of age).

Oh and let us not forget the s.25 statutory factors. These are very important and are also considered by the Family Court. Want to have a read of them? Well, they can be found within s.25 of the Matrimonial Causes Act 1973 and by clicking here. They have been summarised below to save you time.

What Are The s.25 Factors?

So, briefly, what is within the s.25 Factors?

The income, earning capacity, property and other financial resources which either of you has or are likely to have in the foreseeable future.

The financial needs obligations and responsibilities you each have or are likely to have in the foreseeable future.

The standard of living enjoyed by your family before the breakdown.

The duration of the marriage and both of your ages.

If any of you have physical or mental disabilities (if relevant).

Contributions each of you have made or are likely to make in the future to the family (this includes contribution in caring for family or looking after the home).

Conduct of each of you, if that conduct is such that the Family Court would consider it inequitable to disregard it (this is only considered in exceptional circumstances).

The value to each of you in regards to any benefit that either of you will lose the chance of acquiring (i.e. pensions).

When considering the statutory factors explained above, different judges can reach different conclusions on cases of near enough identical facts.

The decision making is supported by a long line of case law which has helped to progress an approach to be considered by the Family Court when deciding financial remedy cases.

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