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When is the court likely to make a property adjustment order on divorce?

Navigating the complexities of divorce can be challenging, especially when it comes to dividing assets and property. One tool the court uses to ensure a fair distribution is the property adjustment order. But when is the court likely to issue such an order, and what factors does it consider? Let’s explore this aspect of family law to provide clarity during what can be an overwhelming time.

Understanding Property Adjustment Orders

A property adjustment order enables the court to redistribute family property between the parties and the children of the family. The purpose is to ensure a fair and equitable division of assets, helping both parties move forward with financial security. These orders might involve a transfer of property ownership from one spouse to another or the sale of property with proceeds being divided. Alternatively the court can impose a trust of land, enabling one spouse and any children to occupy property for a set period of time and to the exclusion of the other. Property adjustment orders are intended to be final. Consequently, no application may be more for a further property adjustment order nor is it possible to vary such an order.

Key Factors the Courts Consider

When deciding whether to make a property adjustment order, the court examines several factors to tailor its decision to the specific circumstances of each marriage. Here are some of the key considerations:

1. Financial Needs and Resources: The court evaluates the financial situation of both parties, including income, savings, investments, and earning capacity. The goal is to ensure each party has the means to support themselves post-divorce. The court will also consider the extent to which any property is deemed non-matrimonial.

2. Duration of the Marriage: Generally, longer marriages may result in more comprehensive property adjustments due to the substantial intertwining of assets over time. However, each case is treated individually.

3. Contributions to the Marriage: Contributions are not limited to financial ones. The court can also consider non-financial contributions such as homemaking, child-rearing and supporting a spouse’s career.

4. Standard of Living: The lifestyle enjoyed during the marriage can influence how assets are divided. The aim is often to maintain a standard of living similar to that experienced during the marriage, where possible.

5. Age and Health: The ages and health conditions of both parties can impact their future income potential and financial needs, influencing the court’s decision on property division.

6. Welfare of Children: If there are children from the marriage, their welfare is the court’s paramount consideration and the court will strive to ensure that any decisions made about property support the children’s needs.

When Are Orders Typically Made?

The court will make a property adjustment order in financial remedy proceedings (either contested or settled by consent) and is likely to do so particularly when there is significant property or complex financial arrangements involved. If the divorcing couple cannot reach a mutual agreement on how assets should be divided, the court can step in to decide. This order might be made early on if immediate adjustments are necessary for either party’s wellbeing (although rare in practice) or may be settled later in the process as part of a comprehensive financial order.

Property adjustment orders are essential tools in achieving fair outcomes in divorce cases. They help ensure that both parties leave the marriage with a fair portion of matrimonial assets, reflecting contributions and future needs. If you’re navigating a divorce, understanding how these orders work and what factors influence them can be invaluable in ensuring a fair settlement. Consulting with a family law expert can further clarify your situation and help you approach the legal process with confidence.

This blog was prepared by Alexander JLO’s senior partner, Peter Johnson on the 15th January 2025 and is correct at the time of publication. With decades of experience in almost all areas of law Peter is happy to assist with any legal issue that you have. He is widely regarded as one of the capital’s leading divorce lawyers. His profile on the independent Review Solicitor website can be found Here