How Living with a New Partner Can Affect Your Divorce Settlement

How Living with a New Partner Can Affect Your Divorce Settlement

When going through a divorce, one important but often overlooked factor is how cohabitation with a new partner can impact your financial settlement. Whether you’re in the early stages of divorce or close to finalising it, it’s vital to understand how living with a new partner may influence the outcome of your case.

In England and Wales, full financial disclosure is a key part of divorce proceedings. This includes being open about any new relationships or cohabitation arrangements. Failing to be transparent could result in legal complications. Below are some scenarios illustrating how cohabitation can affect your financial settlement:

Scenario 1: When a New Partner Provides Financial Stability

Consider a situation where an ex-husband, who was the primary earner during the marriage, moves in with a new partner who owns her home and earns a good income. In this case, the court may view his housing needs as resolved, potentially giving his ex-wife a more favourable position in the settlement. She could be allowed to stay in the family home for a longer period or receive a larger share of the property’s value when sold.

Additionally, because the ex-husband’s living costs may be reduced by sharing expenses with his new partner, the court could see his increased disposable income as a reason to adjust his maintenance payments, possibly requiring him to pay more to his former spouse.

Scenario 2: Hidden Cohabitation and Its Impact on Maintenance

In another scenario, let’s say a husband continues to pay maintenance to his ex-wife as agreed in their settlement, but later finds out she has been living with a new partner and failed to disclose this during the divorce process. If the court determines that her financial situation has improved due to cohabitation, such as by sharing living expenses, her maintenance payments could be reduced. If her new partner earns a significant income, this could also further impact the amount she is entitled to receive.

Scenario 3: Balancing Financial Needs of Two Families

In more complex cases, such as when a former husband with a high income moves in with a new partner who has children from a previous relationship, the court may need to balance the financial needs of both families. The first family’s needs typically take priority, but if the new partner has significant financial responsibilities, such as caring for a disabled child, the court may reassess how the husband’s financial resources are allocated.

Important Considerations for Cohabitation During Divorce

You are legally required to disclose your full financial situation, including any cohabitation, throughout the financial settlement process until a Court Order is in place. If you start living with a new partner before your settlement is finalised—or plan to do so afterward—without informing the court, it could result in a change to the terms of the Court Order, and you may even face a Costs Order to pay some or all of your former spouse’s legal costs.

Cohabitation can significantly affect divorce settlements, but the exact impact depends on several factors, including the financial circumstances of your new partner, the needs of both parties, and any children involved.

Get Professional Legal Advice

If you are unsure about how cohabitation may affect your divorce settlement, it’s essential to seek legal advice from a qualified family lawyer. Having expert guidance will ensure you understand your legal obligations and avoid any costly mistakes.

For tailored advice on how living with a new partner could impact your divorce settlement, contact Parachute Law today for a consultation to safeguard your future.