It is very rare that conduct will have an impact on a financial settlement.
Conduct will generally only be relevant to the financial settlement when it is so severe, that it would be ‘inequitable to disregard it’, for example in the following circumstances:
- Litigation misconduct – Where one party behaves unreasonably during court proceedings, usually by refusing to disclose assets or income, failing to meet deadlines, or not attending hearings. This may result in an Order being made against that party, that they be responsible for the other spouse’s costs.
- Dissipation of assets – This occurs when one party intentionally disposes of assets or income to deprive the other of it, for example by gambling or spending frivolously. This may be “added back” into the matrimonial pot from the perpetrator’s ‘share’.
- Failure to provide financial disclosure – In these circumstances, the court may draw inferences, by assuming that a party is failing to provide full and frank disclosure to conceal assets, and this may then be reflected in a more favourable sum for the other party.
- Gross and obvious personal misconduct (which relates to finances or has financial consequences) – for example, a severe physical assault by a party which renders their spouse disabled and therefore limits their income and earning capacity. In such cases the court may prioritise meeting the needs of the party who has been the victim of such conduct.
In these circumstances, legal advice should be sought at the earliest opportunity, urgently where a party may attempt to dispose of assets or income, as the court has power to prevent or set aside a disposal made with the intention of defeating a claim for financial provision.
If you would like advice about Divorce or Financial remedies, please contact our Family Team at 01206 700113 or contact us