Matrimonial Agreements in Northern Ireland

A Matrimonial Agreement is essentially an out-of-court settlement aimed at severing all financial ties and limiting any potential future claims by spouses. If you are not ready to formally end your marriage/civil partnership through legal proceedings, you may opt to address financial matters by entering into a Matrimonial Agreement with your spouse/civil partner.

A common provision in such agreements in Northern Ireland permits one party to initiate divorce or dissolution of a civil partnership proceedings after two years of separation with the other party's consent, with the costs of such proceedings being shared equally between the parties.

A Matrimonial Agreement will still necessitate both parties to obtain separate legal advice and to undergo the exchange of discovery documentation (of each parties assets, liabilities and income) to inform the division of assets between you by mutual consent.

The disclosure process tends to be the most time-consuming aspect of this stage of the process. It entails each party gathering their pertinent financial information and mutually exchanging this documentation. For instance, providing twelve months of statements for every financial account held individually, jointly, or in trust by each party is just one example of what must be furnished at this stage.

Frequently, questions arise upon reviewing the other party's disclosure, leading to additional requests for clarification, especially in cases with complexity. Parties may also find it necessary to jointly engage an expert, such as an estate agent or accountant, when expert knowledge is needed concerning the parties' assets.

When negotiating the terms of settlement, it's important to remember that the Court has the authority to overrule the terms contained in the Matrimonial Agreement and determine what is appropriate. Statutory guidelines exist to aid in fair decision-making, as delineated in the Matrimonial Causes (Northern Ireland) Order 1978. These guidelines consider the following factors:

• Income: This includes the financial resources of each party, such as income, property, pension schemes, and any potential future income sources, like future earnings potential.

• Financial needs: This encompasses the existing and anticipated financial needs, obligations, and responsibilities of each party.

• Previous standard of living: This considers the family's accustomed standard of living before the marriage breakdown.

• The duration of the marriage.

• The age of each party is taken into account.

• Any health needs of the parties.

• Contributions: This involves the contributions each party has made or is expected to make to the welfare of the family.

• Conduct: The conduct of each party may be considered, but only in exceptional circumstances.

If an agreement is reached and one party later initiates divorce or dissolution proceedings, an application can be made to the court for the agreement to be formalised into a Court Order.

This is significant because enforcing the terms of an agreement is more straightforward if it is a Court Order. However, the Court will not automatically make an agreement an order; it will do so only if it is satisfied that the terms are suitable based on the statutory guidelines (as set out above) to ensure fairness.

If disputes relating to finances remain unresolved, one party may opt to initiate divorce or dissolution proceedings, followed by ancillary relief (financial) proceedings to address any outstanding financial matters.

This advice is written by Joanna Burns, Family & Child Law Solicitor.

If you would like to contact Joanna, please click here.