Property Adjustment Orders in Divorce

What Is a Property Adjustment Order?

A Property Adjustment Order is a legal directive issued by the family court during divorce or civil partnership dissolution proceedings. It allows the court to redistribute property ownership between parties to achieve a fair financial settlement.

These orders are made under Section 24(1) of the Matrimonial Causes Act 1973 and Schedule 5, Part 2 of the Civil Partnership Act 2004.

Types of Property Adjustment Orders

The court has wide discretion to issue the following types of orders:

• Transfer of Ownership: Moving legal title from one party to another (e.g., transferring the matrimonial home).
• Order for the Sale of Property: The Court may order the sale of a property and decide how the proceeds will be split between the spouses.
• Martin and Mesher Orders: In some cases, the court may issue a Mesher or Martin order, which defers the sale of the property until a specific event occurs.

These orders can apply to UK and international properties, which is particularly relevant in high-net-worth (HNW) and ultra-high-net-worth (UHNW) divorces.

How Is a Property Adjustment Order Calculated?

There is no fixed formula for calculating a Property Adjustment Order. Instead, the court exercises broad discretion, tailoring the outcome to the unique circumstances of each case. Key factors considered include:

• The financial needs, obligations, and resources of each party
• The welfare of any children involved
• The standard of living during the marriage
• Each party’s financial and non-financial contributions
• Future earning capacity and potential

The court’s goal is to achieve a fair and equitable division of assets, which may sometimes mean prioritising the primary caregiver or recognising one party’s greater financial input.

Are There Alternatives to Property Adjustment Orders?

Yes. While Property Adjustment Orders are a key tool in dividing property, they are often used alongside other types of financial orders, such as:

• Lump Sum Orders: A one-off payment from one party to the other
• Pension Sharing Orders: Division of pension assets accumulated during the marriage
• Periodical Payments Orders: Ongoing maintenance payments for a set period or until a specific event

Your family’s financial landscape will be assessed holistically to determine the most suitable combination of orders. In many cases, a comprehensive financial settlement will include multiple types of orders to ensure a clean break and long-term stability.

Speak to a Family Law Expert

If you are concerned about how your property may be divided in your divorce, contact Vardags today for a free initial consultation with one of our expert divorce solicitors.  

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