Office of Public Sector Information
Section 196(1)
1 (1) The court may make any one or more of the orders set out in paragraph 2(1)—
(a) on making a dissolution, nullity or separation order, or
(b) at any time afterwards.
(2) The court may make any one or more of the orders set out in paragraph 2(1)(d), (e) and (f)—
(a) in proceedings for a dissolution, nullity or separation order, before making the order;
(b) if proceedings for a dissolution, nullity or separation order are dismissed after the beginning of the trial, either straightaway or within a reasonable period after the dismissal.
(3) The power of the court to make an order under sub-paragraph (1) or (2)(a) in favour of a child of the family is exercisable from time to time.
(4) If the court makes an order in favour of a child under sub-paragraph (2)(b), it may from time to time make a further order in the child’s favour of any of the kinds set out in paragraph 2(1)(d), (e) or (f).
(5) If the court makes an order under sub-paragraph (1), (2) or (4), it may give such consequential directions as it thinks fit for giving effect to the order (including directions requiring the disposal of any property).
2 (1) The orders are—
(a) an order that either civil partner must make to the other such periodical payments for such term as may be specified;
(b) an order that either civil partner must secure to the other, to the satisfaction of the court, such periodical payments for such term as may be specified;
(c) an order that either civil partner must pay to the other such lump sum or sums as may be specified;
(d) an order that one of the civil partners must make—
(i) to such person as may be specified for the benefit of a child of the family, or
(ii) to a child of the family,
such periodical payments for such term as may be specified;
(e) an order that one of the civil partners must secure—
(i) to such person as may be specified for the benefit of a child of the family, or
(ii) to a child of the family,
to the satisfaction of the court, such periodical payments for such term as may be specified;
(f) an order that one of the civil partners must pay such lump sum as may be specified—
(i) to such person as may be specified for the benefit of a child of the family, or
(ii) to a child of the family.
(2) “Specified” means specified in the order.
3 (1) An order under this Part requiring one civil partner to pay the other a lump sum may be made for the purpose of enabling the other civil partner to meet any liabilities or expenses reasonably incurred by the other in maintaining—
(a) himself or herself, or
(b) a child of the family,
before making an application for an order under this Part in his or her favour.
(2) An order under this Part requiring a lump sum to be paid to or for the benefit of a child of the family may be made for the purpose of enabling any liabilities or expenses reasonably incurred by or for the benefit of the child before making an application for an order under this Part to be met.
(3) An order under this Part for the payment of a lump sum may—
(a) provide for its payment by instalments of such amount as may be specified, and
(b) require the payment of the instalments to be secured to the satisfaction of the court.
(4) Sub-paragraphs (1) to (3) do not restrict the powers to make the orders set out in paragraph 2(1)(c) and (f).
(5) If the court—
(a) makes an order under this Part for the payment of a lump sum, and
(b) directs that—
(i) payment of the sum or any part of it is to be deferred, or
(ii) the sum or any part of it is to be paid by instalments,
it may provide for the deferred amount or the instalments to carry interest at such rate as may be specified from such date as may be specified until the date when payment of it is due
(6) A date specified under sub-paragraph (5) must not be earlier than the date of the order.
(7) “Specified” means specified in the order.
4 (1) If an order is made under paragraph 2(1)(a), (b) or (c) on or after making a dissolution or nullity order, neither the order nor any settlement made in pursuance of it takes effect unless the dissolution or nullity order has been made final.
(2) This paragraph does not affect the power of the court to give a direction under paragraph 71 (settlement of instrument by conveyancing counsel).
5 The power to make an order under paragraph 2(1)(d), (e) or (f) is subject to paragraph 44(1) and (5) (restrictions on orders in favour of children who have reached 18).
6 (1) The court may make one or more property adjustment orders—
(a) on making a dissolution, nullity or separation order, or
(b) at any time afterwards.
(2) In this Schedule “property adjustment order” means a property adjustment order under this Part.
7 (1) The property adjustment orders are—
(a) an order that one of the civil partners must transfer such property as may be specified, being property to which he is entitled—
(i) to the other civil partner,
(ii) to a child of the family, or
(iii) to such person as may be specified for the benefit of a child of the family;
(b) an order that a settlement of such property as may be specified, being property to which one of the civil partners is entitled, be made to the satisfaction of the court for the benefit of—
(i) the other civil partner and the children of the family, or
(ii) either or any of them;
(c) an order varying for the benefit of—
(i) the civil partners and the children of the family, or
(ii) either or any of them,
a relevant settlement;
(d) an order extinguishing or reducing the interest of either of the civil partners under a relevant settlement.
(2) The court may make a property adjustment order under sub-paragraph (1)(c) even though there are no children of the family.
(3) If the court makes a property adjustment order, it may give such consequential directions as it thinks fit for giving effect to the order (including directions requiring the making of any payments or the disposal of any property).
(4) In this paragraph—
“entitled” means entitled in possession or reversion,
“relevant settlement” means, in relation to a civil partnership, a settlement made, during its subsistence or in anticipation of its formation, on the civil partners including one made by will or codicil, but not including one in the form of a pension arrangement (within the meaning of Part 3), and
“specified” means specified in the order.
8 (1) If a property adjustment order is made on or after making a dissolution or nullity order, neither the property adjustment order nor any settlement made under it takes effect unless the dissolution or nullity order has been made final.
(2) This paragraph does not affect the power to give a direction under paragraph 71 (settlement of instrument by conveyancing counsel).
9 The power to make a property adjustment order under paragraph 7(1)(a) is subject to paragraph 44(1) and (5) (restrictions on making orders in favour of children who have reached 18).
10 (1) The court may make a pension sharing order—
(a) on making a dissolution or nullity order, or
(b) at any time afterwards.
(2) In this Schedule “pension sharing order” means a pension sharing order under this Part.
11 (1) A pension sharing order is an order which—
(a) provides that one civil partner's—
(i) shareable rights under a specified pension arrangement, or
(ii) shareable state scheme rights,
are to be subject to pension sharing for the benefit of the other civil partner, and
(b) specifies the percentage value to be transferred.
(2) Shareable rights under a pension arrangement are rights in relation to which pension sharing is available under—
(a) Chapter 1 of Part 5 of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)), or
(b) Chapter 1 of Part 4 of the Welfare Reform and Pensions Act 1999 (c. 30).
(3) Shareable state scheme rights are rights in relation to which pension sharing is available under—
(a) Chapter 2 of Part 5 of the 1999 Order, or
(b) Chapter 2 of Part 4 of the 1999 Act.
(4) In this Part “pension arrangement” means—
(a) an occupational pension scheme,
(b) a personal pension scheme,
(c) a retirement annuity contract,
(d) an annuity or insurance policy purchased, or transferred, for the purpose of giving effect to rights under—
(i) an occupational pension scheme, or
(ii) a personal pension scheme, and
(e) an annuity purchased, or entered into, for the purpose of discharging liability in respect of a pension credit under—
(i) Article 26(1)(b) of the 1999 Order, or
(ii) section 29(1)(b) of the 1999 Act.
(5) In sub-paragraph (4)—
“occupational pension scheme” has the same meaning as in the Pension Schemes (Northern Ireland) Act 1993 (c. 49);
“personal pension scheme” has the same meaning as in the 1993 Act;
“retirement annuity contract” means a contract or scheme approved under Chapter 3 of Part 14 of the Income and Corporation Taxes Act 1988 (c. 1).
12 If a pension sharing order relates to rights under a pension arrangement, the court may include in the order provision about the apportionment between the civil partners of any charge under—
(a) Article 38 of the 1999 Order (charges in respect of pension sharing costs), or
(b) section 41 of the 1999 Act.
13 (1) A pension sharing order may not be made in relation to a pension arrangement which—
(a) is the subject of a pension sharing order in relation to the civil partnership, or
(b) has been the subject of pension sharing between the civil partners.
(2) A pension sharing order may not be made in relation to shareable state scheme rights if—
(a) such rights are the subject of a pension sharing order in relation to the civil partnership, or
(b) such rights have been the subject of pension sharing between the civil partners.
(3) A pension sharing order may not be made in relation to the rights of a person under a pension arrangement if there is in force a requirement imposed by virtue of Part 5 which relates to benefits or future benefits to which that person is entitled under the pension arrangement.
14 (1) A pension sharing order is not to take effect unless the dissolution or nullity order on or after which it is made has been made final.
(2) No pension sharing order may be made so as to take effect before the end of such period after the making of the order as may be prescribed by regulations made by the Lord Chancellor.
(3) The power to make regulations under sub-paragraph (2) is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).
(4) Regulations under sub-paragraph (2) are subject to annulment in pursuance of a resolution of either House of Parliament in the same manner as a statutory instrument; and section 5 of the Statutory Instruments Act 1946 (c. 36) applies accordingly.
15 The court in deciding—
(a) whether to exercise its powers under—
(i) Part 1 (financial provision on dissolution etc.),
(ii) Part 2 (property adjustment orders), or
(iii) any provision of Part 3 (pension sharing orders) other than paragraph 12 (apportionment of charges), and
(b) if so, in what way,
must have regard to all the circumstances of the case, giving first consideration to the welfare, while under 18, of any child of the family who has not reached 18.
16 (1) This paragraph applies to the exercise by the court in relation to a civil partner of its powers under—
(a) Part 1 (financial provision on dissolution etc.) by virtue of paragraph 2(1)(a), (b) or (c),
(b) Part 2 (property adjustment orders), or
(c) Part 3 (pension sharing orders).
(2) The court must in particular have regard to—
(a) the income, earning capacity, property and other financial resources which each civil partner—
(i) has, or
(ii) is likely to have in the foreseeable future,
including, in the case of earning capacity, any increase in that capacity which it would in the opinion of the court be reasonable to expect the civil partner to take steps to acquire;
(b) the financial needs, obligations and responsibilities which each civil partner has or is likely to have in the foreseeable future;
(c) the standard of living enjoyed by the family before the breakdown of the civil partnership;
(d) the age of each civil partner and the duration of the civil partnership;
(e) any physical or mental disability of either of the civil partners;
(f) the contributions which each civil partner has made or is likely in the foreseeable future to make to the welfare of the family, including any contribution by looking after the home or caring for the family;
(g) the conduct of each civil partner, if that conduct is such that it would in the opinion of the court be inequitable to disregard it;
(h) in the case of proceedings for a dissolution or nullity order, the value to each civil partner of any benefit which, because of the dissolution or annulment of the civil partnership, that civil partner will lose the chance of acquiring.
17 (1) This paragraph applies to the exercise by the court in relation to a child of the family of its powers under—
(a) Part 1 (financial provision on dissolution etc.) by virtue of paragraph 2(1)(d), (e) or (f), or
(b) Part 2 (property adjustment orders).
(2) The court must in particular have regard to—
(a) the financial needs of the child;
(b) the income, earning capacity (if any), property and other financial resources of the child;
(c) any physical or mental disability of the child;
(d) the way in which the child was being and in which the civil partners expected the child to be educated or trained;
(e) the considerations mentioned in relation to the civil partners in paragraph 16(2)(a), (b), (c) and (e).
(3) In relation to the exercise of any of those powers against a civil partner (“A”) in favour of a child of the family who is not A’s child, the court must also have regard to—
(a) whether A has assumed any responsibility for the child’s maintenance,
(b) if so, the extent to which, and the basis upon which, A assumed such responsibility and the length of time for which A discharged such responsibility;
(c) whether in assuming and discharging such responsibility A did so knowing that the child was not A’s child;
(d) the liability of any other person to maintain the child.
18 (1) Sub-paragraphs (2) and (3) apply if, on or after the making of a dissolution or nullity order, the court decides to exercise its powers under—
(a) Part 1 (financial provision on dissolution etc.) by virtue of paragraph 2(1)(a), (b) or (c),
(b) Part 2 (property adjustment orders), or
(c) Part 3 (pension sharing orders),
in favour of one of the civil partners.
(2) The court must consider whether it would be appropriate to exercise those powers in such a way that the financial obligations of each civil partner towards the other will be terminated as soon after the making of the dissolution or nullity order as the court considers just and reasonable.
(3) If the court decides to make—
(a) a periodical payments order, or
(b) a secured periodical payments order,
in favour of one of the civil partners (“A”), it must in particular consider whether it would be appropriate to require the payments to be made or secured only for such term as would in its opinion be sufficient to enable A to adjust without undue hardship to the termination of A’s financial dependence on the other civil partner.
(4) If—
(a) on or after the making of a dissolution or nullity order, an application is made by one of the civil partners for a periodical payments or secured periodical payments order in that civil partner’s favour, but
(b) the court considers that no continuing obligation should be imposed on either civil partner to make or secure periodical payments in favour of the other,
the court may dismiss the application with a direction that the applicant is not entitled to make any future application in relation to that civil partnership for an order under Part 1 by virtue of paragraph 2(1)(a) or (b).
19 (1) The matters to which the court is to have regard under paragraph 16(2)(a) include any pension benefits under a pension arrangement or by way of pension which a civil partner has or is likely to have; and, accordingly, in relation to any pension benefits paragraph 16(2)(a)(ii) has effect as if “in the foreseeable future” were omitted.
(2) The matters to which the court is to have regard under paragraph 16(2)(h) include any pension benefits which, because of the making of a dissolution or nullity order, a civil partner will lose the chance of acquiring.
(3) “Pension benefits” means—
(a) benefits under a pension arrangement, or
(b) benefits by way of pension (whether under a pension arrangement or not).
20 (1) This paragraph applies if, having regard to any benefits under a pension arrangement, the court decides to make an order under Part 1.
(2) To the extent to which the Part 1 order is made having regard to any benefits under a pension arrangement, it may require the person responsible for the pension arrangement, if at any time any payment in respect of any benefits under the arrangement becomes due to the civil partner with pension rights, to make a payment for the benefit of the other civil partner.
(3) The Part 1 order must express the amount of any payment required to be made by virtue of sub-paragraph (2) as a percentage of the payment which becomes due to the civil partner with pension rights.
(4) Any such payment by the person responsible for the arrangement—
(a) discharges so much of his liability to the civil partner with pension rights as corresponds to the amount of the payment, and
(b) is to be treated for all purposes as a payment made by the civil partner with pension rights in or towards the discharge of that civil partner’s liability under the order.
(5) If the civil partner with pension rights has a right of commutation under the arrangement, the Part 1 order may require that civil partner to exercise it to any extent.
(6) This paragraph applies to any payment due in consequence of commutation in pursuance of the Part 1 order as it applies to other payments in respect of benefits under the arrangement.
(7) The power conferred by sub-paragraph (5) may not be exercised for the purpose of commuting a benefit payable to the civil partner with pension rights to a benefit payable to the other civil partner.
(8) The powers conferred by sub-paragraphs (2) and (5) may not be exercised in relation to a pension arrangement which—
(a) is the subject of a pension sharing order in relation to the civil partnership, or
(b) has been the subject of pension sharing between the civil partners.
21 (1) This paragraph applies if the benefits which the civil partner with pension rights has or is likely to have under a pension arrangement include any lump sum payable in respect of that civil partner’s death.
(2) The court’s power under Part 1 to order a civil partner to pay a lump sum to the other civil partner includes the power to make by the order any of the provision in sub-paragraphs (3) to (5).
(3) If the person responsible for the pension arrangement has power to determine the person to whom the sum, or any part of it, is to be paid, the court may require him to pay the whole or part of that sum, when it becomes due, to the other civil partner.
(4) If the civil partner with pension rights has power to nominate the person to whom the sum, or any part of it, is to be paid, the court may require the civil partner with pension rights to nominate the other civil partner in respect of the whole or part of that sum.
(5) In any other case, the court may require the person responsible for the pension arrangement in question to pay the whole or part of that sum, when it becomes due, for the benefit of the other civil partner instead of to the person to whom, apart from the order, it would be paid.
(6) Any payment by the person responsible for the arrangement under an order made under Part 1 made by virtue of this paragraph discharges so much of his liability in respect of the civil partner with pension rights as corresponds to the amount of the payment.
(7) The powers conferred by this paragraph may not be exercised in relation to a pension arrangement which—
(a) is the subject of a pension sharing order in relation to the civil partnership, or
(b) has been the subject of pension sharing between the civil partners.
22 If—
(a) a Part 1 order made by virtue of paragraph 20 or 21 imposes any requirement on the person responsible for a pension arrangement (“the first arrangement”),
(b) the civil partner with pension rights acquires rights under another pension arrangement (“the new arrangement”) which are derived (directly or indirectly) from the whole of that civil partner’s rights under the first arrangement, and
(c) the person responsible for the new arrangement has been given notice in accordance with regulations made by the Lord Chancellor,
the Part 1 order has effect as if it had been made instead in respect of the person responsible for the new arrangement.
23 (1) The Lord Chancellor may by regulations—
(a) make provision, in relation to any provision of paragraphs 20 or 21 which authorises the court making a Part 1 order to require the person responsible for a pension arrangement to make a payment for the benefit of the other civil partner, as to—
(i) the person to whom, and
(ii) the terms on which,
the payment is to be made;
(b) make provision, in relation to payment under a mistaken belief as to the continuation in force of a provision included by virtue of paragraph 20 or 21 in a Part 1 order, about the rights or liabilities of the payer, the payee or the person to whom the payment was due;
(c) require notices to be given in respect of changes of circumstances relevant to Part 1 orders which include provision made by virtue of paragraphs 20 and 21;
(d) make provision for the person responsible for a pension arrangement to be discharged in prescribed circumstances from a requirement imposed by virtue of paragraph 20 or 21;
(e) make provision about calculation and verification in relation to the valuation of—
(i) benefits under a pension arrangement, or
(ii) shareable state scheme rights (within the meaning of paragraph 11(3)),
for the purposes of the court’s functions in connection with the exercise of any of its powers under this Schedule.
(2) Regulations under sub-paragraph (1)(e) may include—
(a) provision for calculation or verification in accordance with guidance from time to time prepared by a prescribed person, and
(b) provision by reference to regulations under Article 27 or 46(4) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)).
(3) The power to make regulations under paragraph 22 or this paragraph is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).
(4) Regulations under paragraph 22 or this paragraph are subject to annulment in pursuance of a resolution of either House of Parliament in the same manner as a statutory instrument; and section 5 of the Statutory Instruments Act 1946 (c. 36) applies accordingly.
(5) “Prescribed” means prescribed by regulations.
24 (1) In this Part “the civil partner with pension rights” means the civil partner who has or is likely to have benefits under a pension arrangement.
(2) In this Part “pension arrangement” has the same meaning as in Part 3.
(3) In this Part, references to the person responsible for a pension arrangement are to be read in accordance with Article 23 of the 1999 Order.
25 (1) The matters to which a court is to have regard under paragraph 16(2)(a) include any PPF compensation to which a civil partner is or is likely to be entitled; and, accordingly, in relation to any PPF compensation paragraph 16(2)(a)(ii) has effect as if “in the foreseeable future” were omitted.
(2) The matters to which a court is to have regard under paragraph 16(2)(h) include any PPF compensation which, because of the making of a dissolution or nullity order, a civil partner will lose the chance of acquiring entitlement to.
(3) In this Part “PPF compensation” means compensation payable under—
(a) Chapter 3 of Part 2 of the Pensions Act 2004 (pension protection), or
(b) corresponding Northern Ireland legislation.
26 (1) This paragraph applies to an order under Part 1 so far as it includes provision made by virtue of paragraph 20(2) which—
(a) imposed requirements on the trustees or managers of an occupational pension scheme for which the Board has assumed responsibility, and
(b) was made before the trustees or managers received the transfer notice.
(2) From the time the trustees or managers of the scheme receive the transfer notice, the order has effect—
(a) except in descriptions of case prescribed by regulations, with the modifications set out in sub-paragraph (3), and
(b) with such other modifications as may be prescribed by regulations.
(3) The modifications are that—
(a) references in the order to the trustees or managers of the scheme have effect as references to the Board, and
(b) references in the order to any pension or lump sum to which the civil partner with pension rights is or may become entitled under the scheme have effect as references to any PPF compensation to which that person is or may become entitled in respect of the pension or lump sum.
Civil Partnership Act 2004