A New Era for Financial Remedies on Divorce?

The framework governing how assets are divided upon divorce is facing unprecedented scrutiny. For decades, judges have relied on broad judicial discretion to determine financial awards based on “fairness” and “needs.” However, this flexibility may often lead to unpredictable outcomes, high legal costs, and prolonged anxiety for separating couples.

The Law Commission have suggested there should be reform of the current system. This endorsement has arguably accelerated the momentum for reform, with the Government’s current consultation project: “A Fairer End to Relationships.”

Key areas likely to be under review include whether the law should codify what constitutes a “matrimonial asset” versus a “non-matrimonial asset,” such as pre-owned property or inheritance. There appears to also be a push toward creating clearer, more standardised guidelines on how long spousal maintenance should last. In Scotland, for instance, spousal maintenance is usually limited to no more than 3 years.

The aim of any reform is arguably to bring clarity, predictability, and accessibility to financial remedy cases, whether that can be achieved is yet to be seen.

It will be interesting to read the conclusion of the consultation and whether that may result in draft legislation being circulated; which shall no doubt bring a second wave of objections.