Financial Settlements Arising On Dissolution Of A Civil Partnership

• Published date: 21 September 2023
• Subject Matter: Family and Matrimonial, Family Law, Divorce
• Law Firm: Weightmans
• Author: Rupa Parekh and Dawn Finlayson

We highlight some of the main differences for financial settlements arising on dissolution.

• England and Wales
• Scotland
• Entitlement to a fair share
• Maintenance/periodical allowance
• Duration of payments
• Procedure in England
• Procedure in Scotland
• Contested proceedings
• Pre-Civil Partnership Agreements

Since the Supreme Court decision of Villiers, considerable attention has been given to the differing legal jurisdictions in England and Wales, and in Scotland.

Different laws and processes apply in each jurisdiction, and below we highlight some of the main differences for financial settlements arising on dissolution.

England and Wales

In England and Wales, all resources held by the parties, whether in their joint or sole names, or whether held with third parties, worldwide, are assessed when ascertaining the terms of a reasonable and fair financial settlement.

The court will consider which assets constitute 'matrimonial property' acquired during the civil partnership, and consider assets acquired both before the relationship and those acquired post-separation.

All are available for consideration when ascertaining the terms of an appropriate financial settlement.

Scotland

In Scotland, there are key differences.

The matrimonial property available for a fair financial settlement is limited to those resources acquired by the parties during the course of the civil partnership up to the date that they separate. For example, if a party won the lottery or received a significant inheritance the week after separation, the other partner would not have any entitlement to a share of the same on dissolution.

Any gifts or inherited assets are not considered matrimonial property if they remain in the same format as received and have not been sold or converted into new assets during the civil partnership. They would effectively continue to belong to the party that received them.

Any assets acquired before the civil partnership would not be considered matrimonial property and again would continue to belong to the party who acquired them.

There is an exception to this last rule in that any property or its contents acquired before the civil partnership which the parties use as a family home would be deemed to be matrimonial property and liable for division on dissolution.

Entitlement to a fair share

In both jurisdictions, any division must be fair and reasonable having regard to the parties' respective resources.

The court in England/Wales and Scotland will consider whether an...