Divorce - Money & Property

The Court has the power to make the following orders in favour of one of the spouses:

• Maintenance Pending Suit
• Periodical Payments
• Secured Periodical Payments
• Capital Orders
• Lump Sum Orders
• Property Adjustment Orders
• Orders for Sale

Court considerations When making a Financial Order

The court must consider:

All the circumstances of the case, but first consideration is given to the welfare of any child of the family under 18 years of age.

• Income, earning capacity and other resources,
• Needs and responsibilities,
• Standard of living,
• Age of the parties and duration of the marriage,
• Disability,
• Contributions for the family,
• Conduct
• Potential financial loss.

ADVANTAGES

May be worth pursuing particularly if a party of ample means leaves another with onerous responsibilities and no ability to meet them.

DISADVANTAGES

A Court orders only modest sums to be paid because the purpose of maintenance pending suit is to provide adequate temporary provision during the proceedings.

There may be enforcement problems if a reluctant or aggrieved spouse is still struggling to come to terms with the divorce or his/her responsibility to maintain the other party (or both).

May hinder negotiations over the final settlement.

Periodical payments usually take the form of weekly or monthly sums and may be paid to a spouse or in exceptional cases to a child of the family.

Unsecured periodical payments terminate on the death of the paying spouse.

This is a device to ensure that the spouse will continue to receive the periodical payments even if the other spouse's income fluctuates or if problems of enforcement are anticipated.

Secured periodical payments work by charging an asset with a sum fixed by the Court from which the periodical payments can be met.

Usually that asset will be income producing and will be paid to the spouse up to the amount specified in the Court Order.

Secured periodical payment Orders do not terminate on the death of the spouse.

The Court can order a party to pay to the other or to a child of the family a cash lump sum.

There are two main reasons for making an lump sum order:

• To adjust the final division of the party's assets and the order is used in conjunction with an order dealing with the matrimonial home.
• To recompense the applicant for expenses incurred prior to the application as a result of inadequate support from the respondent for the applicant or a child of the family.

A spouse is entitled to apply for one lump sum order only although the order may specify payment by several instalments. However more than one lump sum order can be made for a child.

The Court has wide powers to re-distribute family property between the parties and the children of the family.

It may do so by ordering that property be transferred, for example, from one party to the other, or held on trust and such orders are final.

The Court has power to order a sale of any property in which either party is entitled.