Factors considered by the court

Section 25 checklist

The starting point for the courts and practitioners alike on an application for a financial order is the checklist set out in section 25 of the Matrimonial Causes Act 1973 (MCA 1973) and the equivalent provisions in Schedule 5, Part 5 to the Civil Partnership Act 2004 (CPA 2004). The factors are:

  1. the income, earning capacity, property and other financial resources that each of the parties to the marriage has or is likely to have in the foreseeable future, including, in the case of earning capacity, any increase in that capacity that it would, in the opinion of the court, be reasonable to expect a party to the marriage to take steps to acquire

  2. the financial needs, obligations and responsibilities that each of the parties to the marriage has or is likely to have in the foreseeable future

  3. the standard of living enjoyed by the family before the breakdown of the marriage

  4. the age of each party to the marriage and the duration of the marriage

  5. any physical or mental disability of either of

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High Court judgment demonstrates usefulness of section 423 of the Insolvency Act 1986 in Schedule 1 claims (Re P (A Child) (Financial Provision))

Family analysis: In this Schedule 1 case the mother received, for her son’s benefit: a housing fund of nearly £1m (the property to be held on trust); child maintenance (including ‘HECSA’/carer’s allowance) until completion of his first degree; and lump sums in respect of his capital needs and her own substantial liabilities (chiefly relating to her unpaid legal fees). The father (whose resources could be measured in the ‘tens of millions of pounds’) had sought to prejudice the mother’s claims via transferring his valuable shares to family members, who then transferred the same into a trust structure (settled under Czech law). A further onwards transfer was then made of the trust’s assets into a Liechtenstein foundation. Inferences were drawn by the court in respect of the level of the father’s wealth, and specifically as to the value of the transferred shares. Detailed findings were made against him in respect of the identified transactions, which had been the focus of the mother’s section 423 application. Although a section 423(2) order was not actually made, the application was adjourned pending the father’s compliance with the award, with security in the sum of £600,000 also ordered, alongside a continuation of the freezing orders made earlier in the proceedings. David Wilkinson, solicitor at Slater Heelis, considers the issues.

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