Sorting out finances arising from relationship breakdown can sometimes take years to conclude, so it is commonplace for people to have found a new partner before an order is finalised. But could your ex claim money or maintenance from your new partner? Or can cohabiting with someone new adversely affect your divorce settlement? Read on to find out.
Sorting out finances arising from relationship breakdown can sometimes take years to conclude, so it is commonplace for people to have found a new partner before an order is finalised. But could your ex claim money or maintenance from your new partner? Or can cohabiting with someone new adversely affect your divorce settlement? Read on to find out.
If you have concerns about your finances as part of divorce and you feel you need legal advice, contact specialist family solicitor Mark Heptinstall of Slater Heelis Solicitors. He is recognised as a ‘Leading Individual’ in The Legal 500 and ranked in Chambers UK, and is described as having “the amazing ability to bring calm into troubled waters”.
What is the legal framework governing financial claims?
Financial claims during divorce are governed by the Matrimonial Causes Act 1973. This legislation allows courts to assess and make decisions on financial matters between divorcing spouses, such as property division, spousal maintenance, and the financial needs of any children. The Act ensures that each party’s financial position is considered fairly, with the aim of achieving a just settlement based on factors like income, assets, and contributions to the marriage.
The court’s primary concern is ensuring that both spouses have their needs met and that there is a fair division of marital assets. For example, if one spouse is financially dependent, the court may award spousal maintenance to support them until they can become self-sufficient. In all cases, the court will base its decisions on the facts and circumstances at the time of divorce, with the intention of creating a fair and balanced financial settlement.
Can my ex claim money or maintenance from my new partner?
As part of the separation, the court will look at the case in the round, using the factors of section 25 of the Matrimonial Causes Act 1973 (MCA) 1973 as a guide to achieving a fair outcome based on each party’s needs, and the needs of any children. However, to be clear, there are no circumstances where an ex could claim money or maintenance directly from an individual’s new partner as a part of a divorce settlement.
Can my ex make a claim for money/maintenance from my new partner if we are already divorced?
As mentioned, your ex cannot claim money directly from your new partner. That said, when you get divorced, unless you obtain a financial order from the court, your financial ties with your ex are not automatically severed. Without a court order or consent order, your ex can potentially claim money from you many years later. Even if you have no matrimonial assets to divide, it is sensible to get a financial order which includes a “clean break”. This is a legally binding order that permanently and irrevocably severs all financial ties.
You can apply for a financial order after the Conditional Order is received and at any time afterwards until one party marries. Once your ex marries, it automatically extinguishes any financial claims they might otherwise have had.
To be clear, although your ex may be able to make a financial claim in relation to your finances in the future if you haven’t obtained a clean break order, they will not be able to make a claim directly from your new partner for financial provision. As with a settlement during divorce, the court will look at section 25 of the MCA 1973 as discussed above, although this will be viewed through the prism of time passed and the reasons for making the application.
What about during divorce – does the existence of my new partner affect how the a divorce settlement is calculated?
The aim for the court is to divide the matrimonial pot between a couple as fairly as possible, whilst taking into consideration each party’s financial needs and situation before and during the marriage. The court starts at a 50/50 split of the assets and work backwards in order to help it determine a fair distribution.
Because every couple’s circumstances are different, the law has been designed flexibly and there is no set method that the court uses to calculate a divorce settlement. There is a range of factors under section 25 of the MCA the court uses to formulate their decision, and one of these is the needs, obligations, and responsibilities which each of the parties to the marriage has or is likely to have in the foreseeable future. This is where living with a new partner may have an impact.
How will living with a new partner affect my divorce settlement?
As mentioned above, some of the factors that the court looks at when calculating a divorce settlement include financial needs and situation. The court will aim to make sure that the parties needs are met and that they can maintain the same standard of living or as close to it as possible.
If you are now living with a new partner, the court may decide that your financial needs are therefore smaller. Even if you do not rely on your new partner for any financial support and maintain completely separate finances, the court may take the view that living with them reduces your day-to-day expenses. This may consequently have the effect of reducing the amount of your divorce settlement.
What is the impact of cohabitation on spousal maintenance?
Cohabitation with a new partner can have a significant impact on spousal maintenance, as it may reduce or even terminate the financial support one spouse receives after divorce. When an individual begins living with a new partner, shared living expenses and combined financial resources may lower their overall financial needs, making spousal maintenance less necessary. However, this is not an automatic change and requires a formal assessment by the court.
Unlike remarriage, which can automatically end spousal maintenance under certain circumstances, cohabitation does not automatically trigger a reduction or termination of maintenance. If the paying spouse believes that their former partner’s financial situation has improved due to cohabitation, they may apply to the court for a variation in the maintenance order. The court will then assess the circumstances to determine whether the recipient’s financial needs have indeed been reduced because of the new living arrangements.
Key factors considered by the court include the financial contribution of the new partner, the nature of the cohabitation, and the recipient spouse’s actual living expenses. The court will also consider the length of time the new partner and the recipient spouse have been cohabiting and whether the living arrangement significantly impacts the recipient’s ability to support themselves.
While cohabitation can influence the amount or continuation of spousal maintenance, it is important to understand that any changes must be formally addressed in court. The court will make a decision based on the individual facts of the case, ensuring that any modifications to maintenance are fair and just.
Can I keep my new relationship a secret until the divorce is finalised?
If you are not living with your new partner and have no immediate plans to do so, there is no reason you have to disclose the fact that you are in a new relationship. However, if you have moved in together or it is a very real prospect in the near future, you must be honest. If you fail to tell the court you are living with your new partner or receiving financial support from them, your ex will be able to apply to the court to have an existing order varied to take this into account.
Remarriage and its effect on financial obligations
Remarriage has a clear impact on spousal maintenance. Under the Matrimonial Causes Act 1973, spousal maintenance automatically ends when the recipient remarries. The rationale behind this is that remarriage typically indicates that the recipient’s financial needs have changed, as they are now supported by their new spouse. As a result, the obligation of the former spouse to provide maintenance is considered to be terminated.
However, it is important to note that child maintenance is not affected by remarriage. Regardless of whether the recipient remarries, the obligation to financially support children remains in place. The non-residential parent continues to be responsible for child maintenance, as their obligations towards the children are independent of the recipient’s marital status.
If there is any uncertainty about the effect of remarriage on maintenance, either party can apply to the court for clarification. In cases where the recipient remarries but still requires financial support, they may need to reassess their needs with the court, but this does not affect child maintenance obligations.
Does child maintenance take into account a new partner’s income?
In short, the amount your ex as the paying parent must pay will generally be calculated on their income and how often the children stay overnight. Therefore, living with a new partner should not affect the amount of child maintenance you should receive from your ex partner.
Child maintenance considerations
Child maintenance is determined based solely on the paying parent’s income, not the financial circumstances of their new partner. The Child Maintenance Service (CMS) calculates the amount of maintenance based on the paying parent’s earnings, taking into account their salary, wages, or other sources of income.
A new partner’s income or financial situation does not affect the paying parent’s obligation. The paying parent is still responsible for contributing to the child’s financial needs, regardless of any changes in their personal life, such as cohabitation or remarriage. This ensures that the child’s needs remain the priority in determining maintenance payments.
While the receiving parent’s household income might change due to a new partner’s financial contributions, this does not affect the paying parent’s child maintenance responsibilities. The focus remains on the paying parent’s income to ensure consistent and fair support for the child.
Does getting married affect any maintenance payments from my ex?
Once you remarry, your ex is no longer obligated to make any maintenance payments to you. That said, getting married should not have any adverse effect on the money paid by your ex in relation to child maintenance.
What is the legal recourse for financial independence?
A “clean break” financial order is a legal arrangement that allows divorcing spouses to sever all financial ties and prevent future claims from an ex-spouse. This order ensures that neither party can seek further financial support after the divorce is finalised, promoting financial independence for both. To secure a clean break, the agreement must be formalised through the court, and both parties must disclose their financial situations. Once approved, the court order makes the division of assets final, providing clarity and protection from any future financial obligations or claims.
The importance of seeking legal advice
Seeking professional legal advice is crucial when navigating the complexities of divorce, particularly when cohabitation, remarriage, and financial orders come into play. A solicitor can provide expert guidance on how these factors affect ongoing maintenance obligations. For instance, cohabitation with a new partner may impact spousal maintenance, but understanding when to seek a variation or termination of maintenance requires a thorough knowledge of the law. Similarly, remarriage can automatically end spousal maintenance obligations, but legal advice can help ensure that all aspects of the divorce are addressed, including the effect on children’s financial support.
A solicitor will also help ensure that any financial orders, such as a clean break, are appropriately drafted and legally binding. This ensures that both parties understand their rights and obligations and prevents future disputes regarding financial support. Moreover, solicitors can explain the nuances of child maintenance, ensuring that the paying parent’s responsibilities are accurately assessed based on their income, irrespective of their new partner’s financial situation.
Legal advice is vital to protect your financial interests and ensure that all decisions are made in accordance with the law. A solicitor will help you navigate the complexities of divorce and financial matters, ensuring a fair and clear resolution for all parties involved.
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