By Alison Green, Partner and Head of the Family and Relationship Team
The recent publication of a scoping report by the Law Commission on financial remedy orders on 18 December 2024 has highlighted the pressing need to revisit and potentially reform the law governing financial orders made in divorce and civil partnership dissolutions.
As a family lawyer with extensive experience, I have seen the significant impact financial disputes can have on separating couples.
The current legal framework, rooted in the Matrimonial Causes Act of 1973 and echoed in the Civil Partnership Act 2004, now faces a critical evaluation to ensure it meets the contemporary needs of families.
Annually, numerous individuals confront the complex process of divorce or dissolution, seeking orders that determine the post-separation distribution of assets.
These include property transfers, maintenance payments, and pension sharing.
The existing law, however, provides broad judicial discretion, which often leads to unpredictable and inequitable outcomes.
The Law Commission’s report acknowledges that this uncertainty fosters disputes rather than resolutions, highlighting a system that fails to provide a fair and sufficiently certain framework for couples.
The scoping report does not recommend specific reforms but identifies key issues with the current legislation and presents four potential models for reform.
These range from minimal changes with the codification of current case law to establishing default rules that could significantly reduce judicial discretion and increase certainty.
The report covers several areas for reform, however, here are some of the key matters to consider:
A project based on this report will evaluate domestic law and incorporate international perspectives to offer a broader view on handling similar challenges.
The Law Commission has set the stage for transformative changes. These could align financial remedy law with modern families’ realities.
This review by the Law Commission signifies a crucial step towards modernising the financial aspects of family law.
As legal professionals, our engagement in this process is vital. We can actively influence the development of laws that more effectively address the financial ramifications of relationship breakdowns.
The potential reforms could lead to clearer guidelines that facilitate better outcomes for all parties in a divorce or dissolution.
For further guidance on any elements of a financial remedy order, please contact Alison Green directly.