Division Of Assets – 50/50 or 50 years outdated?
In her latest blog, Family Law Solicitor Leonnie Watson discusses the division of assets during divorce and whether the Matrimonial Causes Act 1973 is outdated…
Whilst the starting point for the division of assets is 50/50, when you first meet with a solicitor, it is likely that they will advise that without financial disclosure, they cannot really guide you as to the merit of any proposal for the division of assets, whether this be an agreed 50/50 split or not.
The reason for this is because the division of assets must also be guided and determined by the considerations detailed within Section 25 (S25) of the Matrimonial Causes Act 1973. Examples of this non-exhaustive list include who has care of the children, each party’s income and each party’s housing needs.
Whilst the S25 guidance means that each case is considered on a case by case basis, it has been suggested that if matters indeed escalate to court proceedings if parties are unable to come to an agreement, then the concern is that because of the unpredictable nature of the act through its lack of guidance, means that there could be drawn out court proceedings which could affect children of the family as well.
As a result the Matrimonial Causes Act has been criticised and labelled ‘uncertain’ and ‘unpredictable’ sparking a potential review of this 50-year-old legislation by the Law Commission to consider how such delays can be prevented.
It is anticipated that an announcement will be made soon for the review of the legislation. Changes, if any, will not happen overnight, and may take as long as two years to implement any changes so for the avoidance of doubt and for the time being, any new or ongoing financial cases will not be affected.
Finances cases are generally always going to be about the needs of each party, the resources available to them or what should be made available to them. This is why it is so important that this statute is explored and considered very carefully during this review so as to not take away from its fundamental core values.
The aim of the review is to ensure that the current law is working effectively and delivering fair and consistent outcomes for divorcing couples. So, really, the review will hopefully assist in minimising any uncertainty that is identified, the risk of conflict and, hopefully provide some clarity if required to avoid adding additional worry to separating couples (and children) at an already stressful time.
April 2023