1 Amendment of the Matrimonial Causes Act 1973

(1) Section 25 of the Matrimonial Causes Act 1973 (matters to which the court is to
have regard in deciding how to exercise its powers under ss. 23, 24, 24A, 24B
and 24E) ceases to have effect in relation to the making of orders for financial
5provision between the parties to a marriage.

(2) This Act replaces that section with provisions about the principles to be
applied in determining applications for such orders, including provision about
the effect of pre-nuptial and post-nuptial agreements.

(3) In this Act—

• 10“1973 Act” means the Matrimonial Causes Act 1973;

• “child of the family” has the same meaning as in the Children Act 1989;

• “divorce” includes dissolution of a civil partnership;

• “marriage” includes civil partnership;

• “pre-nuptial agreement” means an agreement entered into in
  15contemplation of marriage for the purpose of regulating the affairs of
  the parties should their marriage break down; and

• “post-nuptial agreement” means an agreement entered into after
  marriage, by the parties to the marriage, for the purpose of regulating
  their affairs should the marriage break down.

2 20Applications for court orders

(1) In proceedings for divorce, either party may apply to the court for any of the
following orders for the benefit of that party—

(a) an order for payment of a lump sum to that party by the other party to
the marriage;

(b) an order for the transfer of property to that party by the other party to
the marriage;

(c) an order for the making of periodical payments to that party by the
other party to the marriage;

(d) 5a pension-sharing order.

(2) Subject to the provisions of section 4(6), the court is to exercise the powers in
subsection (1)(a), (b) and (d) only in relation to matrimonial property.

(3) Sections 3 to 7 apply to the determination of an application—

(a) for an order mentioned in subsection (1);

(b) 10for an order under section 23, 24, 24A, 24B or 24E of the 1973 Act, or
under the corresponding provisions of the Civil Partnership Act 2004
and the Marriage (Same Sex Couples) Act 2013, for the benefit of a party
to the marriage.

3 Pre-nuptial and post-nuptial agreements

(1) 15For the purposes of any proceedings to which this section applies, a pre-nuptial
or post-nuptial agreement is to be treated as binding on the parties and is to be
given effect unless—

(a) the agreement attempts to impose an obligation on a third party who
has not agreed in advance to be bound by it (in which case the
20agreement is not binding on the parties insofar as it attempts to impose
that obligation);

(b) a party neither received independent legal advice, nor had an adequate
opportunity to do so, before the agreement was made;

(c) in the case of a pre-nuptial agreement, the agreement was made less
25than 21 days before the marriage;

(d) there was no full disclosure of assets as between the parties before it
was made; or

(e) the agreement is unenforceable under the applicable rules of law
relating to the validity or enforceability of contracts generally.

(2) 30For the purposes of subsection (1)(b), where a person authorised to carry out
reserved legal activities (within the meaning of the Legal Services Act 2007) has
given a party independent legal advice about the proposed entry into a pre-
nuptial or post-nuptial agreement, the certificate of that person to that effect is
to be treated as conclusive evidence of the giving of that advice.

(3) 35The Lord Chancellor may by regulations made by statutory instrument make
provision about the requirements of full disclosure of assets for the purposes
of subsection (1)(d); and an instrument containing such regulations must be
laid before each House of Parliament and is subject to annulment by resolution
of either House.

(4) 40Where a pre-nuptial or post-nuptial agreement is to be treated as binding, the
court may consider the making of an order of a kind mentioned in section 2(2)
only to the extent to which the agreement does not deal with the matter.

4 Matrimonial property

(1) The net value of the matrimonial property is to be shared fairly between the
45parties to the marriage.

(2) In applying the principle set out in subsection (1), the net value of the
matrimonial property shall be taken to be shared fairly between the parties
when it is shared equally, unless subsection (7) applies.

(3) The net value of the property is the value of the property at the relevant date,
5after deduction of any debts incurred by one or both of the parties to the
marriage—

(a) before the marriage so far as they relate to the matrimonial property, or

(b) during the marriage;

which are outstanding at that date.

(4) 10In this section the “relevant date” means the date on which—

(a) the parties ceased to cohabit, or

(b) the petition for divorce is served,

whichever is the earlier.

(5) In this section “matrimonial property” means all the property, including any
15pension, or interest in a pension, which could be the subject of a pension-
sharing order, belonging to the parties or either of them at the relevant date
which was acquired by them or one of them otherwise than by way of gift or
succession from a third party—

(a) before the marriage for use by the parties as a family home or as
20furniture or fittings for such home; or

(b) during the marriage but before the relevant date,

and includes property which is matrimonial property as a result of subsection
(6).

(6) The following provisions apply to property belonging to either party which is
25not otherwise matrimonial property—

(a) if an increase in the value of the property, or any income or gain
derived from the property, is attributable, wholly or partly, to the
application of matrimonial property, the increase in value, or the
income or gain, are matrimonial property;

(b) 30if an increase in the value of the property, or any income or gain
derived from the property, is attributable, wholly or partly, and
directly or indirectly, to actions of the other party, then the increase in
value, or the income or gain, are matrimonial property but the share of
each party in that matrimonial property is to be determined in
35accordance with the contribution of each party to the increase in value
or the income or gain;

(c) property, the proceeds of any disposition of property, and any increase
in the value of, or any income or gain derived from property, are each
matrimonial property if that property, those proceeds, the increase in
40value or the income or gain are used for the acquisition or improvement
of, or to increase the value of, or the amount of any interest of either
party in, any matrimonial property, and are so used with the consent,
express or implied, of the party who owns, receives, or is entitled to
them.

(7) 45The court may make an order involving an unequal sharing of the net value of
the matrimonial property to the extent to which it is satisfied that to do so
would be fair, having regard to any of the following matters—

(a) the terms of any agreement between the parties relating to the
ownership or division of any of the matrimonial property;

(b) the source of the funds or assets used to acquire any of the matrimonial
property where those funds or assets were not derived from the income
or efforts of the parties during the marriage;

(c) any destruction, dissipation or alienation of matrimonial property by
5either party;

(d) the nature and use of the matrimonial property, including the question
whether and to what extent the property is used for business purposes
rather than as a family home, and the extent to which it is reasonable to
expect it to be realised or divided or used as security;

(e) 10the needs of any children of the family aged under 21; and

(f) actual or prospective liability for any expenses of valuation or transfer
of property in connection with the divorce.

5 Periodical payments and lump sums

(1) An order for periodical payments to which this section applies must specify the
15period during which the periodical payments are to be made; and that period
may not exceed three years beginning with the day on which the first payment
is to be made.

(2) The court must not make an order for periodical payments or a lump sum
unless it is satisfied that an order for transfer of property would be insufficient,
20having regard to the matters set out in subsections (3) and (6), to satisfy the
requirements of this section or would be otherwise inappropriate.

(3) In deciding whether and in what terms to exercise its powers to make a
periodical payments or lump sum order in favour of one of the parties to the
marriage, the court must take into account—

(a) 25any economic advantage derived by either party from contributions by
the other, and any economic disadvantage suffered by either party in
the interests of the other party or of their family;

(b) the fair sharing between the parties of any economic burden of caring
after divorce for a child of the family under the age of 16 years;

(c) 30that a party who has been dependent to a substantial degree on the
financial support of the other party should be awarded such periodical
payments or lump sum as is reasonable to enable that party to adjust to
the loss of that support on divorce over a period of not more than three
years from the date of the decree of divorce; and

(d) 35that a party who at the time of the divorce is likely to suffer serious
financial hardship as a result of the divorce should be awarded such
periodical payments or lump sum as is reasonable to relieve that party
of such hardship over a period of three years or such shorter period as
the court considers reasonable.

(4) 40In applying subsection (3)(a), the court must take into account—

(a) any advantage or disadvantage whether incurred before or during the
marriage, including any gain or loss in capital, income or earning
capacity;

(b) contributions made before or during the marriage, including indirect
45and non-financial contributions, such as a contribution made by
looking after the family home or caring for the family, and supporting
the family financially,

and must consider the matters mentioned in subsection (5).

(5) The matters are—

(a) the extent to which any economic advantage or disadvantage incurred
by either party is balanced by any economic advantage or disadvantage
incurred by the other party;

(b) 5the extent to which any imbalance of advantage and disadvantage has
been, or would be, corrected, including correction by the making of an
order in relation to the sharing of the value of the matrimonial
property.

(6) In deciding whether and in what terms to exercise its powers to make a
10periodical payments or lump sum order in favour of one of the parties to the
marriage, the court must also take into account—

(a) the age, health and earning capacity of that party;

(b) the duration and extent of the dependence of that party prior to
divorce;

(c) 15any intention of that party to undertake a course of education or
training;

(d) any support available to that party from a third party;

(e) the needs and resources of the parties; and

(f) all the other circumstances of the case.

(7) 20An order to which this section applies ceases to have effect on the marriage or
death of the receiving party, except in relation to any arrears due under it.

6 Children of the family

In determining an application to which section 4 or 5 applies in a case where
there is a child of the family the court must have regard to—

(a) 25any order for support for the child;

(b) the need to provide suitable accommodation for the child;

(c) the age and health of the child;

(d) the educational, financial and other circumstances of the child;

(e) the availability and cost of suitable childcare facilities; and

(f) 30the needs and resources of the parties.

7 Conduct

In determining an application to which section 4 or 5 applies, the court must
not take into account the conduct of either party to the marriage, except to the
extent to which the matters to which those sections require the court to have
35regard include such conduct, unless—

(a) the conduct has adversely affected the financial resources of a party
which are relevant to the determination; or

(b) it would be manifestly inequitable to leave the conduct out of account.

8 Short title, commencement and extent

(1) 40This Act may be cited as the Divorce (Financial Provision) Act 2014.

(2) This Act comes into force at the end of the period of three months beginning
with the day on which it is passed.

(3) This Act extends to England and Wales only.