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Advice

What happens if you're made redundant during a divorce?

Wendy Campbell Wendy Campbell
2 min read

Unfortunately, it is a sign of the times that redundancy or the potential of redundancy is more prevalent than usual.  If being made redundant isn’t bad enough this occurring during divorce proceedings has to be quite a frightening experience for both of the parties involved, increasing tension and uncertainty.

Is a redundancy payment a marital asset?

Whether a redundancy payment is taken into account within matrimonial proceedings depends on a number of factors. 

  1. Other assets available to the parties
  2. Whether the redundancy was received pre or post separation.  

If proceedings are ongoing they may have to be adjourned until there is certainty around the employment of the party facing redundancy.

How does a redundancy payment impact upon a financial agreement/order?

If a financial agreement has been reached or the court has made an order that the person who is facing redundancy has to pay the spouse maintenance this may require an application to the court to vary the maintenance level downwards; the outcome of such an application may depend upon whether the person being made redundant has another job in the pipeline or it may be deemed that the capital received from the redundancy payment is sufficient to meet any ongoing maintenance provision.

Each case will turn on its own merits, there are no right or wrong answers and the court has a huge discretion. 

Winston Solicitors can advise and assist with queries that you may have should you be contemplating divorce proceedings and facing redundancy at the same time.  Call to speak with specialist divorce solicitors on 0113 320 5000 or use the contact form today.

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