Factors 7 – Conduct of the Parties
Section 25 of the Matrimonial Causes Act 1973 requires the court to consider the conduct of each party, but only if it would be inequitable to disregard it. It must be clear that the conduct is both serious and has had a financial impact.
The court is cautious about allowing conduct to influence the financial settlement.
What Kind of Conduct Matters?
• Financial Misconduct: This includes actions like recklessly spending marital assets, hiding assets, or deliberately reducing their value. The court can “add back” dissipated assets when dividing the finances.
• Personal Misconduct: This is less common but can include domestic violence if it has a financial impact.
How Conduct Affects Settlements
• What is ‘Conduct’? The court is not concerned with minor disagreements or the reasons for the divorce itself. Instead, it focuses on conduct that has a financial consequence or is so severe that it would be unjust to ignore it.
• The High Threshold: The bar for “conduct” is very high. Simply citing adultery or unreasonable behaviour is not relevant. The conduct must be “gross and obvious.”
• Impact on Settlement: If conduct is proven, the court may adjust the financial settlement. This could mean a smaller share of assets for the party who engaged in the misconduct. However, the needs of both parties will still be considered.
Factor 8 – Loss of Benefits
Another factor the court considers under Section 25 is the loss of benefits a party might experience due to the divorce. This often relates to pensions but can also include things like life insurance or potential inheritances.
• Pensions: The court can make pension sharing or attachment orders to address any imbalance.
• Other Benefits: The court will consider any other financial advantages one party might lose because of the divorce.