In divorce proceedings, the division of finances is governed in England and Wales by the Matrimonial Causes Act 1973. Section 25 of this Act outlines the factors the court must consider when deciding on financial settlements. One significant factor is the ‘standard of living’ enjoyed by the family before the marriage breakdown.
Why is Standard of Living Important?
The court acknowledges that divorce inevitably leads to a change in financial circumstances for both parties. While it may not always be possible to maintain the exact same lifestyle, the court aims to ensure that neither party experiences a drastic or unfair decline in their standard of living, particularly when children are involved.
What Does the Court Consider?
The court will assess the lifestyle the family enjoyed during the marriage. This includes:
• Housing: The type and location of the family home.
• Income and Expenditure: The level of income, spending habits, and savings.
• Lifestyle: This encompasses holidays, social activities, and general quality of life.
• Education: The standard of education provided to any children.
The court’s objective is to achieve a fair outcome. This doesn’t necessarily mean an equal division of assets, but rather a settlement that considers the needs of both parties in the context of their previous lifestyle.
Practical Considerations:
• Needs-Based Approach: In many cases, especially where resources are limited, the court prioritizes meeting the essential needs of both parties.
• Fairness and Realism: The court balances the desire to maintain a similar standard of living with the practical realities of the post-divorce financial situation. It acknowledges that some adjustments may be necessary.
• Children’s Welfare: The welfare of any children is always a primary concern. The court will strive to ensure that their standard of living is minimally impacted by the divorce.