Factor 5 – Physical or Mental Disability
When a marriage ends, and one or both parties have a physical or mental disability, this significantly impacts the financial settlement. Section 25 of the Matrimonial Causes Act 1973 requires the court to consider any disability when dividing assets.
How Does Disability Affect Settlements?
• Financial Needs: A party with a disability may have increased financial needs due to medical expenses, care costs, specialised housing, or reduced earning capacity. The settlement will aim to meet these needs.
• Earning Capacity: The court considers how a disability affects a party’s ability to earn a living now and in the future. If a disability limits earning potential, this will be factored into the settlement.
• Contributions: The court acknowledges the contributions of both parties, even if one party’s disability limited their ability to contribute financially. Non-financial contributions, such as caregiving, are also considered.
• Long-term Security: The settlement should provide long-term financial security for a disabled party, ensuring their needs are met in the future. This may involve a larger share of assets or ongoing maintenance payments.
Factor 6 – Contributions
Section 25 also requires the court to consider the contributions each party has made to the welfare of the family. This isn’t just about financial contributions. The court recognises both financial and non-financial contributions.
Types of Contributions
• Financial Contributions: This includes income, savings, assets brought into the marriage, and efforts to increase the family’s wealth.
• Non-Financial Contributions: This includes looking after the home, caring for children, and supporting the other party’s career. The court views these contributions as equally valuable.
How Contributions Affect Settlements
The court aims for a fair outcome, recognizing that both parties have contributed to the family’s welfare in different ways. There’s no bias towards the “breadwinner.” The court considers all contributions when dividing assets.