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KembaraXtra – Legal Terms – Property Adjustment Order
A property adjustment order is an order made by the court under the Matrimonial Causes Act 1973 in proceedings for divorce, judicial separation, or nullity of marriage. The order affects ownership rights relating to property held by either spouse. The court may order the transfer of property from one spouse to another, settlement of property for the benefit of a spouse or children, variation of marriage settlements, or extinguishment of rights under settlements. Courts possess exceptionally broad discretion in deciding whether to make such orders and on what terms. The general aim is to achieve fairness between the parties while considering their financial needs, resources, and responsibilities. Housing arrangements for children and spouses are particularly important considerations.
Property adjustment orders commonly concern the matrimonial home, which is often the most valuable family asset. The court may order the immediate sale of the property or postpone sale until certain events occur, such as children reaching adulthood. Orders such as the Martin order or Mesher order may create deferred trusts for sale in these circumstances. The court also aims, where possible, to achieve a clean break between the parties so that future financial dependence is minimized. Property adjustment orders are frequently made together with financial provision orders involving maintenance or lump-sum payments. These orders therefore play a major role in distributing assets fairly after the breakdown of a marriage.
A property adjustment order is an order made by the court under the Matrimonial Causes Act 1973 in proceedings for divorce, judicial separation, or nullity of marriage. The order affects ownership rights relating to property held by either spouse. The court may order the transfer of property from one spouse to another, settlement of property for the benefit of a spouse or children, variation of marriage settlements, or extinguishment of rights under settlements. Courts possess exceptionally broad discretion in deciding whether to make such orders and on what terms. The general aim is to achieve fairness between the parties while considering their financial needs, resources, and responsibilities. Housing arrangements for children and spouses are particularly important considerations.
Property adjustment orders commonly concern the matrimonial home, which is often the most valuable family asset. The court may order the immediate sale of the property or postpone sale until certain events occur, such as children reaching adulthood. Orders such as the Martin order or Mesher order may create deferred trusts for sale in these circumstances. The court also aims, where possible, to achieve a clean break between the parties so that future financial dependence is minimized. Property adjustment orders are frequently made together with financial provision orders involving maintenance or lump-sum payments. These orders therefore play a major role in distributing assets fairly after the breakdown of a marriage.
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