Civil Partnership Dissolution Financial Settlement
April 2025
Ending a civil partnership can be an emotional and complex process, particularly when it comes to financial matters. Reaching a fair financial settlement is crucial to ensuring that both parties can move forward with clarity and financial security. Whether agreements can be reached amicably or require legal intervention, it is important to understand your rights and options.
This summary provides general information and does not constitute legal advice on any specific individual’s circumstances.
When dissolving a civil partnership, the parties’ assets (including properties, savings and pensions) will need to be divided between them, constituting their respective financial settlements.
Assets can be transferred between the parties, or they can be sold and the proceeds then divided. Alternatively, one party may be in a position to make a lump sum payment to the other, representing that party’s share of the assets, instead of a transfer or sale.
If applicable, one of the parties may also receive ongoing financial support from the other in the form of maintenance payments. Maintenance payments may be appropriate where one party has been reliant on the other’s income, and requires further assistance while they take steps to provide for themselves following the ending of the civil partnership.
Whatever the circumstances, reaching a financial settlement is crucial, as it establishes the couple’s financial separation, and ensures that both individuals have the financial stability they need to move forward.
Financial settlements can be reached through mutual agreement, mediation, or court proceedings, if necessary. Whatever the forum, the goal is to achieve a fair and balanced outcome that takes into consideration the needs of both parties, their contributions to the partnership, and their future financial stability. There is no set formula to dividing assets, it depends on what is reasonable and fair in that couple’s specific circumstances.
Mediation and Negotiation
Mediation can be an effective way to reach a financial agreement without the stress and cost of court proceedings. While they will not give legal advice, a trained mediator can help both parties explore options and find common ground in a neutral environment. If an agreement is reached, it can then be formalised into a legally binding consent order. Mediation can be especially beneficial as it allows both individuals to retain control over the outcome, rather than leaving the decision in the hands of the court.
Where mediation is not suitable or an agreement cannot be reached, each party may need legal representation to assist them in negotiating a fair settlement. While the parties will still be in control of the settlement reached, they will have the benefit of legal advice to ensure that any agreement reflects a fair division of assets and meets both parties’ long-term financial needs.
Court Orders for Financial Settlements
If an agreement cannot be reached through mediation or solicitor-led negotiations, either party can apply to the court for a financial order. The court has the power to make orders regarding how the parties’ assets should be divided, and whether one party should make maintenance payments to the other (including how much these payments should be, and how long they should be made). The court’s priority is to ensure that both parties have financial stability moving forward.
When deciding how to divide assets, the court considers a range of factors, including the financial needs and circumstances of each party, their earning capacity, and the contributions they have made to the partnership. These contributions can include financial input, such as income and property, as well as non-financial contributions, such as one party taking care of the home and any children.
Other key considerations include the housing needs of both parties, especially if children are involved, and the age and health of both individuals, as well as their ability to support themselves financially after the dissolution.
How Can Fullers Help?
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