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Marriage breakdown has financial repercussions

Regular readers of this column will know that the breakdown of a marriage has immediate repercussions. But few are more contentious than the issue of who gets what, and who pays what to whom.

It is only human, after all, for spouses to revert to `survivor mode' when they are in the process of splitting up. They become protective of `their' assets and income, and that often leads to disputes that can only be settled by putting the matter before an independent arbiter, the Supreme Court of Bermuda.

That can be done even before divorce proceedings are begun if, for example, the break-up leaves one spouse without any means of support.

In those circumstances, the dependent spouse can apply to the Court to receive support payments before a final order is made during the divorce proceedings themselves.

If the financial situation of the parties is complex, or if the application for support is made on an urgent basis giving the court little time to fully analyse the financial situation, the court may make an interim order for support.

Once the full facts are known, the court will make a more permanent order.

In deciding what level of support to order, the court will consider the standard of living enjoyed by the parties during their marriage, and the ability of the non-dependent spouse to pay support.

Generally speaking, the dependent spouse should enjoy a standard of living comparable to that enjoyed during the marriage. Practically speaking, however, most often both parties suffer a drop in their standard of living due to the increased costs of leading separate lives.

In Bermuda, courts consider all financial assets and resources of each party, whether acquired before or during marriage, when deciding the level of financial support for members of the family.

That does not mean that the courts will automatically divide income and assets 50/50 between divorcing spouses. But it does mean that your spouse may be entitled to a share of your assets, even though those assets may be in your name alone, or held by a company or trust.

The court has the power to transfer or adjust assets between parties regardless of who holds legal title to the assets.

Our law provides the court with a very wide discretion when it addresses the issue of financial provision.

The court is bound to look at certain factors, however, and must try as far as possible to place the parties in the financial position they would have enjoyed had the marriage not broken down, and had they continued to fulfil their financial obligations to each other.

The court will look at all the circumstances of the case, including: A: the income, earning capacity, property and other financial resources which each of the parties to the marriage has or is likely to have in the foreseeable future; B: the financial needs, obligations and responsibilities which each of the parties to the marriage has or is likely to have in the foreseeable future; Marriage breakdown has repercussions C: the standard of living enjoyed by the family before the breakdown of the marriage; D: the age of each party to the marriage and the duration of the marriage; E: any physical or mental disability of either of the parties to the marriage; F: the contributions made by each of the parties to the welfare of the family, including any contribution made by looking after the home or caring for the family; and G: in the case of proceedings for divorce or nullity of marriage, the value to either of the parties to the marriage of any benefit (for example, a pension) which, by reason of the dissolution or annulment of the marriage, that party will lose the chance of acquiring.

The court is also entitled to consider the conduct of the parties both during and after marriage, but the kinds of conduct considered relevant are limited, and usually must be of an extreme nature.

Over time, as the courts have considered various cases, general principles have emerged that help us predict how they will likely deal with a case having particular facts. In my next column, I will discuss those general principles.

*** Nita Grewal is a litigation attorney and a member of the Appleby Spurling & Kempe Family Law Team. You can write to her with your questions or comments at Familylaw yASK.BM. Copies of Ms Grewal's columns can be obtained on the Appleby Spurling & Kempe website at www.ask.bm.

*** This column should not be used as a substitute for professional legal advice.

Before proceeding with any matters discussed here, persons are advised to consult with a lawyer.

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