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Can I amend my divorce settlement due to Covid?

Maintenance Orders are capable of variation so if your income has reduced as a result of the pandemic, you may be entitled to reduce your payments. You should ensure that any reduction is reflected in a Court Order to ensure your ex-spouse cannot claim arrears from you.

It is not generally possible to vary capital and pension settlements included in Court Orders unless there has been a significant event, sometimes known as a “barder event”. The following four conditions must be satisfied:

  1. New events have occurred since the Order which invalidate the basis or fundamental assumption on which the Court Order was made and which were unforeseen and unforeseeable. This can include a change in the value of assets, employment status, inheritance and death.
  2. The new events occurred within a relatively short time of the Order being made.
  3. The Application to change the Order is made reasonably promptly.
  4. If the Application succeeded, this would not prejudice any third parties who have acquired assets in good faith e.g. if the family home has already been sold to a third party.

The applications relying on Covid as a significant event have had limited success. The circumstances in which the Barder principle may apply are few and far between. It is of note that the global financial crisis of 2007/2008 was not considered to be a Barder event.

Care should, therefore, be taken when deciding whether to pursue a change to the Divorce settlement and it is recommended that you speak to a specialist Family Law team like ours.

Related FAQs

I have trespassers occupying my land. Can I evict them?

On 18 April 2020, it was announced that an exception to the current stay in possession proceedings and ban on all evictions has been made to allow possession orders to be made against trespassers.

This means land owners can take action to remove unauthorised persons occupying their land. Trespassers include: squatters; travellers; failed successors of secure tenancies; and licensees whose licences have been terminated.

Further, the automatic stay to possession proceedings currently imposed no longer applies to applications for interim possession orders meaning any persons found to be “squatting” on land without permission may again be subject to an order requiring them to leave your premises within 24 hours of service of that order.

What is happening with public transport?

Government guidance is that public transport should be avoided wherever possible. Transport providers will be expected to follow government guidance to make their services more COVID-19 secure.

Should volunteers be DBS checked?

There is not currently a requirement for MHFAs to be DBS checked.

Who decides on carrying-over holiday entitlement?

The Regulations do not require any prior agreement between an employer and employee that it was not reasonably practicable for holiday to be taken for it to be carried over.

However, if an employee requests holiday then an employer must have ‘good reason’ for refusing it due to coronavirus. The term ‘good reason’ is not defined so the Government will expect employers, employees and (if necessary on any dispute) the Courts to apply common sense.

The Regulations are not confined to key workers so could, in principle, be used by employers for a wider range of employees.

The Government guidance suggests that the following factors should be taken into account when considering whether it was reasonably practicable to take the leave in the relevant year:

  • Whether the business has faced a significant increase in demand due to COVID-19 that would reasonably require the worker to continue to be at work and cannot be met through alternative practical measures.
  • The extent to which the business’ workforce is disrupted by COVID-19 and the practical options available to the business to provide temporary cover of essential activities.
  • The health of the worker and how soon they need to take a period of rest and relaxation.
  • The length of time remaining in the worker’s leave year.
  • The extent to which the worker taking leave would impact on wider society’s response to, and recovery from, the effects of COVID-19.
  • The ability of the remainder of the available workforce to provide cover for the worker going on leave.
What other financial support is available for self-employed individuals?

Although these measures fall short of the level of assurance given to employees both in terms of eligibility for an immediacy of access to payments, they are a vast improvement on the support for self-employed workers that has been put in place until now. Current support includes:

  • Access to business interruption loans
  • Self-assessment tax payments that were due in July 2020 have been deferred until January 2021
  • VAT is deferred until the next quarter
  • The introduction of Time to Pay arrangements under which deferrals for HMRC payments can be agreed
  • The minimum income floor for universal credit has been suspended which will allow self-employed workers to access the equivalent of Statutory Sick Pay (SSP)
  • Universal credit and tax credit payments to increase by £1000 per year