Ending a Marriage or Civil Partnership: How Finances Are Dealt With in Either Scenario

How does a marriage or civil partnership end?

Both marriage and civil partnerships are legal contracts and therefore, a marriage will only be ended by divorce or death. Civil partnerships will only be ended by dissolution or death.  In either case, a divorce or dissolution can only be applied for if the marriage or civil partnership has lasted for at least one year.

So how will the financial issues be dealt with on a divorce or dissolution?

If a civil partnership ends, then a dissolution has the same effect as a divorce and the financial rights and obligations are the same for a civil partnership as they are for a marriage.  Either party can apply to the family court (on divorce or dissolution) for the following orders that may apply to their case:-

• an order for a sale or a transfer of a property to one person
• an order that a lump sum of money (either one instalment or in a number of instalments) or a series of lump sums is paid over a period of time
• an order that one party pay maintenance to the other either for the rest of their joint lives or until the recipient remarries or enters into a subsequent civil partnership, or for a fixed period
• an order for money for educational expenses etc for a child
• an order for child maintenance in the event that the payer is a high earner which takes them above the Child Maintenance Service’s income cap
• an order that a pension be shared or ‘attached’.

A Consent Order (Financial Remedy Order) can be prepared and submitted to the court if parties agree with the financial arrangements during divorce or dissolution.  There are a number of ways parties can reach agreement, including via Solicitor led negotiation or Mediation.   If the parties cannot agree a settlement an application to the court can be made for the court to decide what happens or, the parties can consider the use of arbitration which is a different form of dispute resolution and one which is often quicker than using the court process

Please note the above is for information purposes only and is intended to be a short summary. It should not be treated as a comprehensive guide and should not be acted on without qualified legal advice.