Matrimonial And Non-matrimonial Assets In Divorce Or Civil Partnership Dissolution - The Financial Arrangements

• Published date: 23 November 2022
• Subject Matter: Family and Matrimonial, Family Law, Divorce
• Law Firm: Giambrone & Partners
• Author: Ms Daniel Theron

Divorce or Dissolution is one of the most emotionally challenging experiences that anyone encounters, a step that is generally taken after considerable thought. However, the actual break-up of the relationship is in the forefront of the minds of most people. The practicalities and the consequences of divorce are not always fully recognised. As a result of the Divorce, Dissolution and Separation Act 2020 there is no longer a requirement to present reasons for divorce to the court, removing the need for blame and reducing the potential for acrimony and lengthy divorce proceedings where each party attempts to paint the other's behaviour as the cause of the breakdown of the marriage. Only very serious conduct issues may be taken into account in relation to the financial arrangements in very limited circumstances.

There is no change in the way the child and financial arrangements are dealt with and unfortunately, the ensuing division of the matrimonial assets can cause equal hostility, particularly if one party has brought considerably more in the way of earnings, wealth and tangible assets into the marriage and the couple did not address this issue at the beginning of their marriage by way of a pre-nuptial or post-nuptial agreement. The lawyers at Giambrone & Partners' family law department urge couples to avoid making rash decisions that may impact on the rest of their lives and strongly advise on the importance of expert legal advice.

If the couple cannot agree as to the division of assets and all attempts to negotiate a settlement fail, the court will decide. There are a number of factors that are considered including but not limited to, the proportionate wealth of both parties, the length of the marriage, the needs of each party and the needs of any children. Assets built up during the course of a marriage are considered matrimonial or marital assets and are generally divided equally between the couple. The family home bought during the course of the marriage is often in joint names, but nevertheless will be taken into account. Difficulties arise when there is a short marriage or one party had significant pre-marital wealth or received a substantial inheritance.

Daniel Theron, a partner, commented "non-matrimonial assets are generally those assets acquired before the marriage, or assets received during the marriage by one party, for example, a gift or inheritance. Non-matrimonial assets are not automatically excluded from a financial settlement in...