Civil Partnership Bill [HL]

House of Commons

Session 2002 - 03
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Other Bills before Parliament

Civil Partnership Bill [HL]

Civil Partnership Bill [HL]
Schedule 6 — Financial relief in the High Court or a county court etc.
Part 1 — Financial provision in connection with dissolution, nullity or separation
145

Schedule 6
Section 71(1)

Financial relief in the High Court or a county court etc.
Part 1
Financial provision in connection with dissolution, nullity or separation
Circumstances in which orders under this Part may be made
5
1     (1)
The court may make any one or more of the orders set out in paragraph
2(1)—
(a)
on making a dissolution, nullity or separation order, or
(b)
at any time afterwards.
      (2)
The court may make any one or more of the orders set out in paragraph
10
2(1)(d), (e) and (f)—
(a)
in proceedings for a dissolution, nullity or separation order, before
making the order;
(b)
if proceedings for a dissolution, nullity or separation order are
dismissed after the beginning of the trial, either straightaway or
15
within a reasonable period after the dismissal.
      (3)
The power of the court to make an order under sub-paragraph (1) or (2)(a)
in favour of a child of the family is exercisable from time to time.
      (4)
If the court makes an order in favour of a child under sub-paragraph (2)(b),
it may from time to time make a further order in the child’s favour of any of
20
the kinds set out in paragraph 2(1)(d), (e) or (f).
The orders: periodical and secured periodical payments and lump sums
2     (1)
The orders are—
(a)
an order that either civil partner must make to the other such
periodical payments for such term as may be specified;
25
(b)
an order that either civil partner must secure to the other, to the
satisfaction of the court, such periodical payments for such term as
may be specified;
(c)
an order that either civil partner must pay to the other such lump
sum or sums as may be specified;
30
(d)
an order that one of the civil partners must make —
(i)
to such person as may be specified for the benefit of a child of
the family, or
(ii)
to a child of the family,

such periodical payments for such term as may be specified;
35
(e)
an order that one of the civil partners must secure—
(i)
to such person as may be specified for the benefit of a child of
the family, or
(ii)
to a child of the family,

to the satisfaction of the court, such periodical payments for such
40
term as may be specified;
(f)
an order that one of the civil partners must pay such lump sum as
may be specified—

Civil Partnership Bill [HL]
Schedule 6 — Financial relief in the High Court or a county court etc.
Part 1 — Financial provision in connection with dissolution, nullity or separation
146

(i)
to such person as may be specified for the benefit of a child of
the family, or
(ii)
to a child of the family.
      (2)
“Specified” means specified in the order.
Particular provision that may be made by lump sum orders
5
3     (1)
An order under this Part requiring one civil partner to pay the other a lump
sum may be made for the purpose of enabling the other civil partner to meet
any liabilities or expenses reasonably incurred by the other in maintaining—
(a)
himself or herself, or
(b)
a child of the family,
10

before making an application for an order under this Part in his or her
favour.
      (2)
An order under this Part requiring a lump sum to be paid to or for the benefit
of a child of the family may be made for the purpose of enabling any
liabilities or expenses reasonably incurred by or for the benefit of the child
15
before making an application for an order under this Part to be met.
      (3)
An order under this Part for the payment of a lump sum may—
(a)
provide for its payment by instalments of such amount as may be
specified, and
(b)
require the payment of the instalments to be secured to the
20
satisfaction of the court.
      (4)
Sub-paragraphs (1) to (3) do not restrict the powers to make the orders set
out in paragraph 2(1)(c) and (f).
      (5)
If the court—
(a)
makes an order under this Part for the payment of a lump sum, and
25
(b)
directs that—
(i)
payment of the sum or any part of it is to be deferred, or
(ii)
the sum or any part of it is to be paid by instalments,

it may provide for the deferred amount or the instalments to carry interest
at such rate as may be specified from such date as may be specified until the
30
date when payment of it is due.
      (6)
A date specified under sub-paragraph (5) must not be earlier than the date
of the order.
      (7)
“Specified” means specified in the order.
When orders under this Part may take effect
35
4     (1)
If an order is made under paragraph 2(1)(a), (b) or (c) on or after making a
dissolution or nullity order, neither the order nor any settlement made in
pursuance of it takes effect unless the dissolution or nullity order has been
made final.
      (2)
This paragraph does not affect the power of the court to give a direction
40
under paragraph 68 (settlement of instrument by conveyancing counsel).

Civil Partnership Bill [HL]
Schedule 6 — Financial relief in the High Court or a county court etc.
Part 2 — Property adjustment on or after dissolution, nullity or separation
147

Restrictions on making of orders under this Part
5
The power to make an order under paragraph 2(1)(d), (e) or (f) is subject to
paragraph 41(1) and (5) (restrictions on orders in favour of children who
have reached 18).
Part 2
5
Property adjustment on or after dissolution, nullity or separation
Circumstances in which property adjustment orders may be made
6     (1)
The court may make one or more property adjustment orders—
(a)
on making a dissolution, nullity or separation order, or
(b)
at any time afterwards.
10
      (2)
In this Schedule “property adjustment order” means a property adjustment
order under this Part.
Property adjustment orders
7     (1)
The property adjustment orders are—
(a)
an order that one of the civil partners must transfer such property as
15
may be specified, being property to which he is entitled—
(i)
to the other civil partner,
(ii)
to a child of the family, or
(iii)
to such person as may be specified for the benefit of a child of
the family;
20
(b)
an order that a settlement of such property as may be specified, being
property to which one of the civil partners is entitled, be made to the
satisfaction of the court for the benefit of—
(i)
the other civil partner and the children of the family, or
(ii)
either or any of them;
25
(c)
an order varying for the benefit of—
(i)
the civil partners and the children of the family, or
(ii)
either or any of them,

a relevant settlement;
(d)
an order extinguishing or reducing the interest of either of the civil
30
partners under a relevant settlement.
      (2)
The court may make a property adjustment order under sub-paragraph
(1)(c) even though there are no children of the family.
      (3)
In this paragraph—
“entitled” means entitled in possession or reversion,
35
“relevant settlement” means, in relation to a civil partnership, a
settlement made, during its subsistence or in anticipation of its
formation, on the civil partners including one made by will or
codicil, but not including one in the form of a pension arrangement
(within the meaning of Part 4), and
40
“specified” means specified in the order.

Civil Partnership Bill [HL]
Schedule 6 — Financial relief in the High Court or a county court etc.
Part 3 — Sale of property orders
148

When property adjustment orders may take effect
8     (1)
If a property adjustment order is made on or after making a dissolution or
nullity order, neither the property adjustment order nor any settlement
made under it takes effect unless the dissolution or nullity order has been
made final.
5
      (2)
This paragraph does not affect the power to give a direction under
paragraph 68 (settlement of instrument by conveyancing counsel).
Restrictions on making property adjustment orders
9
The power to make a property adjustment order under paragraph 7(1)(a) is
subject to paragraph 41(1) and (5) (restrictions on making orders in favour
10
of children who have reached 18).
Part 3
Sale of property orders
Circumstances in which sale of property orders may be made
10    (1)
The court may make a sale of property order—
15
(a)
on making —
(i)
under Part 1, a secured periodical payments order or an order
for the payment of a lump sum, or
(ii)
a property adjustment order, or
(b)
at any time afterwards.
20
      (2)
In this Schedule “sale of property order” means a sale of property order
under this Part.
Sale of property orders
11    (1)
A sale of property order is an order for the sale of such property as may be
specified, being property in which, or in the proceeds of sale of which, either
25
or both of the civil partners has or have a beneficial interest, either in
possession or reversion.
      (2)
A sale of property order may contain such consequential or supplementary
provisions as the court thinks fit.
      (3)
A sale of property order may in particular include—
30
(a)
provision requiring the making of a payment out of the proceeds of
sale of the property to which the order relates, and
(b)
provision requiring any property to which the order relates to be
offered for sale to a specified person, or class of persons.
      (4)
“Specified” means specified in the order.
35
When sale of property orders may take effect
12    (1)
If a sale of property order is made on or after the making of a dissolution or
nullity order, it does not take effect unless the dissolution or nullity order
has been made final.
      (2)
Where a sale of property order is made, the court may direct that—
40

Civil Partnership Bill [HL]
Schedule 6 — Financial relief in the High Court or a county court etc.
Part 4 — Pension sharing orders on or after dissolution or nullity order
149

(a)
the order, or
(b)
such provision of it as the court may specify,

is not to take effect until the occurrence of an event specified by the court or
the end of a period so specified.
When sale of property orders cease to have effect
5
13
If a sale of property order contains a provision requiring the proceeds of sale
of the property to which the order relates to be used to secure periodical
payments to a civil partner, the order ceases to have effect—
(a)
on the death of the civil partner, or
(b)
on the formation of a subsequent civil partnership or marriage by the
10
civil partner.
Protection of third parties
14    (1)
Sub-paragraphs (2) and (3) apply if—
(a)
a civil partner has a beneficial interest in any property, or in the
proceeds of sale of any property, and
15
(b)
another person (“A”) who is not the other civil partner also has a
beneficial interest in the property or the proceeds.
      (2)
Before deciding whether to make a sale of property order in relation to the
property, the court must give A an opportunity to make representations
with respect to the order.
20
      (3)
Any representations made by A are included among the circumstances to
which the court is required to have regard under paragraph 20.
Part 4
Pension sharing orders on or after dissolution or nullity order
Circumstances in which pension sharing orders may be made
25
15    (1)
The court may make a pension sharing order—
(a)
on making a dissolution or nullity order, or
(b)
at any time afterwards.
      (2)
In this Schedule “pension sharing order” means a pension sharing order
under this Part.
30
Pension sharing orders
16    (1)
A pension sharing order is an order which—
(a)
provides that one civil partner’s—
(i)
shareable rights under a specified pension arrangement, or
(ii)
shareable state scheme rights,
35

are to be subject to pension sharing for the benefit of the other civil
partner, and
(b)
specifies the percentage value to be transferred.
      (2)
Shareable rights under a pension arrangement are rights in relation to which
pension sharing is available under—
40

Civil Partnership Bill [HL]
Schedule 6 — Financial relief in the High Court or a county court etc.
Part 4 — Pension sharing orders on or after dissolution or nullity order
150

(a)
Chapter 1 of Part 4 of the Welfare Reform and Pensions Act 1999
(c. 30), or
(b)
corresponding Northern Ireland legislation.
      (3)
Shareable state scheme rights are rights in relation to which pension sharing
is available under—
5
(a)
Chapter 2 of Part 4 of the 1999 Act, or
(b)
corresponding Northern Ireland legislation.
      (4)
In this Part “pension arrangement” means—
(a)
an occupational pension scheme,
(b)
a personal pension scheme,
10
(c)
a retirement annuity contract,
(d)
an annuity or insurance policy purchased, or transferred, for the
purpose of giving effect to rights under—
(i)
an occupational pension scheme, or
(ii)
a personal pension scheme, and
15
(e)
an annuity purchased, or entered into, for the purpose of discharging
liability in respect of a pension credit under—
(i)
section 29(1)(b) of the 1999 Act, or
(ii)
corresponding Northern Ireland legislation.
      (5)
In sub-paragraph (4)—
20
“occupational pension scheme” has the same meaning as in the
Pension Schemes Act 1993 (c. 48);
“personal pension scheme” has the same meaning as in the 1993 Act;
“retirement annuity contract” means a contract or scheme approved
under Chapter 3 of Part 14 of the Income and Corporation Taxes Act
25
1988 (c. 1).
Pension sharing orders: apportionment of charges
17
If a pension sharing order relates to rights under a pension arrangement, the
court may include in the order provision about the apportionment between
the civil partners of any charge under—
30
(a)
section 41 of the 1999 Act (charges in respect of pension sharing
costs), or
(b)
corresponding Northern Ireland legislation.
Restrictions on making of pension sharing orders
18    (1)
A pension sharing order may not be made in relation to a pension
35
arrangement which—
(a)
is the subject of a pension sharing order in relation to the civil
partnership, or
(b)
has been the subject of pension sharing between the civil partners.
      (2)
A pension sharing order may not be made in relation to shareable state
40
scheme rights if—
(a)
such rights are the subject of a pension sharing order in relation to
the civil partnership, or
(b)
such rights have been the subject of pension sharing between the
civil partners.
45

Civil Partnership Bill [HL]
Schedule 6 — Financial relief in the High Court or a county court etc.
Part 5 — Matters to which court is to have regard under Parts 1 to 4
151

      (3)
A pension sharing order may not be made in relation to the rights of a person
under a pension arrangement if there is in force a requirement imposed by
virtue of Part 6 which relates to benefits or future benefits to which that
person is entitled under the pension arrangement.
When pension sharing orders may take effect
5
19    (1)
A pension sharing order is not to take effect unless the dissolution or nullity
order on or after which it is made has been made final.
      (2)
No pension sharing order may be made so as to take effect before the end of
such period after the making of the order as may be prescribed by
regulations made by the Lord Chancellor.
10
      (3)
The power to make regulations under sub-paragraph (2) is exercisable by
statutory instrument which is subject to annulment in pursuance of a
resolution of either House of Parliament.
Part 5
Matters to which court is to have regard under Parts 1 to 4
15
General
20
The court in deciding—
(a)
whether to exercise its powers under—
(i)
Part 1 (financial provision on dissolution etc.),
(ii)
Part 2 (property adjustment orders),
20
(iii)
Part 3 (sale of property orders), or
(iv)
any provision of Part 4 (pension sharing orders) other than
paragraph 17 (apportionment of charges), and
(b)
if so, in what way,

must have regard to all the circumstances of the case, giving first
25
consideration to the welfare, while under 18, of any child of the family who
has not reached 18.
Particular matters to be taken into account when exercising powers in relation to civil partners
21    (1)
This paragraph applies to the exercise by the court in relation to a civil
partner of its powers under—
30
(a)
Part 1 (financial provision on dissolution etc.) by virtue of paragraph
2(1)(a), (b) or (c),
(b)
Part 2 (property adjustment orders),
(c)
Part 3 (sale of property orders), or
(d)
Part 4 (pension sharing orders).
35
      (2)
The court must in particular have regard to—
(a)
the income, earning capacity, property and other financial resources
which each civil partner—
(i)
has, or
(ii)
is likely to have in the foreseeable future,
40

including, in the case of earning capacity, any increase in that
capacity which it would in the opinion of the court be reasonable to
expect a civil partner in the civil partnership to take steps to acquire;