Section 25 Marital Factors
In the United Kingdom, divorce settlements are guided by various legal considerations, one of which is the Section 25 marital factors. These factors must be taken into account by the courts when deciding your divorce settlement. They play a crucial role in determining the fair distribution of assets and financial resources between divorcing couples.
In this blog, we will explore each of the Section 25 marital factors in detail and highlight why they are essential for a comprehensive divorce settlement. We will also touch upon Form D81, a vital document used to gather information related to these factors.
Income, Earning Capacity and Other Financial Resources
This factor examines the income, earning potential, and financial resources of each spouse. It helps assess the financial standing and contributions made by both parties during the marriage. This includes not only their current income but also any potential changes that may affect their financial circumstances (see value of lost opportunities below).
Financial Needs, Obligations and Responsibilities
The court considers the financial needs, obligations, and responsibilities of each spouse, including their current and future financial requirements. This factor takes into account various aspects such as housing, child support, debts, and ongoing expenses. It ensures that both parties can maintain a reasonable standard of living after the divorce.
Standard of Living
The standard of living enjoyed by the couple during the marriage is also considered. The court aims to ensure that both parties can maintain a similar standard of living as far as possible after the divorce. Factors such as lifestyle, accommodation, and amenities enjoyed during the marriage are considered to determine a fair settlement.
Age
The age of each spouse is an important factor as it can impact their ability to earn, find employment, or accumulate assets. The court will look at the age of the parties and consider potential limitations or advantages related to age when determining a fair distribution of resources.
Health
The health of each spouse is assessed to determine their ability to earn, work, and manage their financial affairs. Serious health issues or disabilities may require additional support or adjustments to ensure fairness in the settlement. The court takes into consideration the impact of health conditions on the overall financial picture.
Contributions to the Family
This factor examines the contributions made by each spouse to the family, both financial and non-financial. It includes considerations such as caring for children, homemaking, and supporting the career of the other spouse. This acknowledges the value of both monetary and non-monetary contributions in the context of the marriage.
Value of Lost Opportunities
Another significant consideration in divorce proceedings is the value to each spouse of any benefit they will lose the chance to acquire due to the divorce. This includes things like pensions, life insurance policies, business ventures, or career advancements, which one spouse may lose as a result of the divorce.
Welfare of the Children (where applicable)
The welfare of any children involved is of paramount importance and is strongly considered alongside the Section 25 marital factors by assessing their financial needs, housing requirements, and the resources necessary to ensure their well-being and upbringing.
Conduct
While conduct is not a predominant factor, it may be relevant in exceptional cases. Instances of misconduct such as extreme financial irresponsibility, domestic abuse, or infidelity may be reviewed, particularly if they significantly impact the financial circumstances or the well-being of the family.
How has the No-Fault Divorce law impacted the Section 25 factors?
The recent No-Fault Divorce Law has had a positive impact on the Section 25 marital factors by promoting a more amicable and cooperative approach to divorce proceedings, allowing for greater focus on financial matters and the well-being of children, and reducing the adversarial nature of the process.
Previously, under the fault-based divorce system, couples were required to establish grounds such as adultery, unreasonable behaviour, or separation for a specified period before proceeding with a divorce. This often led to increased animosity and conflict during the divorce process, potentially influencing the assessment of the Section 25 factors.
The Role of Form D81
This form allows both parties to disclose their financial positions, income, assets, liabilities, and other relevant information required to assess the factors mentioned above. It ensures transparency and facilitates informed decision-making during the divorce settlement process.
Read more about this in our Guide to the New Form D81.
Conclusion
Section 25 marital factors form the cornerstone of fair and equitable divorce settlements in England & Wales. By considering the various aspects mentioned above, the court aims to achieve a just distribution of assets and financial resources between divorcing couples. Ultimately, the objective is to reach a divorce settlement that considers the unique circumstances of each case and enables both parties to move forward with their lives.
