Covid-19 – Effect on Matrimonial Settlements

The Covid-19 economic downturn, that has long been forecast and is now becoming a reality, is expected by family lawyers to drive queries from business owners about the impact on their own financial divorce settlements. With substantial impacts on incomes, settlements that at the time seemed fair, are now looking unaffordable.

Only in a very narrowly drawn set of circumstances can financial orders be rewritten.  There must have been new events, within a relatively short time of the order being made, which make the basis upon which the order was based invalid.

Based upon cases that followed the 2008 economic crisis things like price fluctuations in the housing market, shares or business values, will not be viewed as unforeseen or unforeseeable, however serious their effect.

However, if you are paying a figure in maintenance to your ex that simply is not going to be affordable in the short to medium term due to a material change in circumstances (such as Covid-19 related reduction in income) then the likelihood is that you will be able to vary downwards the sum that you pay.

Specialist advice is essential. If you have any questions please contact Gareth Reynolds at our Cheddar Office.

 

You might also like...

  • Avoid Legal Fees Make your own Will – What Could Possibly Go Wrong? Almost everybody would agree that making a Will is important to ensure that people you trust will deal with the administration of your estate after your death, that your property and […]
  • Scams Awareness Month We have recently received a communication from the Land Registry which says that July is “Scams Awareness Month”.  Now, admittedly, this is not going to excite public interest in the way […]