The unfortunate death of a spouse or civil partner during divorce proceedings brings new complications to what can already be an emotional and stressful time.
Whilst uncommon, it is important to be aware of the impact this can have on proceedings, how your entitlement can change and what you can do to protect your assets during the divorce process.
In this article, our Family Lawyers discuss relevant considerations and the steps you can take to mitigate any unintended outcomes.
Death During Divorce Proceedings
Many people underestimate the length of the divorce process in England and Wales and expect to be legally divorced much sooner than is legally possible. After proceedings are issued, you must wait 20 weeks before the applicant can apply for the Conditional Order.
Once the conditional order is made, you must wait a further six weeks and one day before the applicant can apply for the final order. Only on receipt of the final order are you legally divorced. It is worth noting that it is not possible to apply for the final order after the death of a party.
If one party dies during the divorce process before the final order is granted, the proceedings automatically come to an end and cannot continue. The legal consequence is that the parties are still considered married at the date of death and the surviving party is treated in law as a widow or widower. This can have profound implications on the distribution of the deceased spouse’s estate.
Inheritance and Financial Implications
The surviving spouse may still inherit under the terms of the deceased’s will or under the intestacy rules in the absence of a valid will. The right of survivorship will apply, and on the death of a joint tenant, that person’s interest does not pass under their will or under the intestacy rules, as it passes automatically to the surviving joint tenant.
The surviving spouse may also have a claim against the estate under the Inheritance (Provision for Family and Dependents) Act 1975 if they were not adequately provided for to obtain reasonable financial provision.
This creates a potentially unintended outcome where, if death occurs before the final order, an estranged spouse may inherit in full even where divorce proceedings are well underway, and it is clear that the parties no longer wish to be legally married.
Death After the Divorce Final Order
If a party dies after the divorce final order, the marriage has been legally dissolved. The parties are no longer spouses. The final divorce order does not resolve financial claims.
If death occurs after the divorce final order but before the finances have been resolved, the surviving party is a former spouse and not a widow or widower. The surviving spouse loses automatic spousal rights on intestacy, and they will no longer benefit unless the will expressly provides otherwise.
The surviving party may still be able to bring a claim under the Inheritance (Provision for Family and Dependants) Act 1975 as a former spouse, but the position is generally less advantageous than claiming as a surviving spouse.
It is crucial for individuals contemplating divorce to review and update their wills at an early stage. Preparing a new will ensures that your estate is distributed in accordance with your current intentions.
Death During Financial Remedy Proceedings
Financial remedy proceedings are separate to divorce proceedings and deal with how the parties’ finances are resolved following the breakdown of a marriage or civil partnership.
The divorce process itself does not resolve financial matters. Most parties can negotiate a financial settlement without going to court following voluntary financial disclosure and negotiations via solicitors or with the assistance of mediators.
If agreement can be reached, the terms should be incorporated into a financial remedy consent order and approved by the Family Court. If agreement cannot be reached, either party may start financial remedy proceedings so that the court can determine the issues.
Death Before a Final Financial Order is Made
If a party dies mid-proceedings, the proceedings abate, and the court are unable to make a financial order in these circumstances. A claim for a financial order is personal to the party’s marriage/civil partnership and does not survive death, meaning the court loses its jurisdiction to make a financial order.
The surviving spouse will retain the right to claim against the deceased’s estate for financial provision, and this will now be their only option.
It is unlikely that the surviving spouse would receive the same award that they would in financial remedy proceedings, as a claim against the estate will only be on a needs basis and will not consider factors that could have resulted in greater financial provision for them under financial remedy proceedings.
Death After a Final Financial Order is Made
This will be dependent on who has died, the nature of the order itself and whether the order has taken effect. If a final financial order has already been made, the capital elements, for example, a lump sum payment or property transfer, are generally enforceable against the deceased’s estate. Obligations for ongoing spousal periodical payments usually cease on the payer’s death as they are personal in nature.
Most commonly, however, parties do not obtain the divorce final order before finalising their financial arrangements, which is where this can become complex.
Periodical payments, secured periodical payments and lump sum orders, as well as property adjustment orders, only take effect upon the final order of divorce. It is not possible for the surviving party to apply for the final divorce order to ensure the order takes effect after the death of the other party.
Provided that the final divorce, dissolution or nullity order has been made, lump sum orders and property adjustment orders will survive the death or either or both of the parties. If a party dies soon after the financial order is made, the surviving party may apply to set aside the order.
Pension Sharing Orders After Death
Pension sharing orders are more complex, as they are time sensitive. They will only take effect if the pension sharing annex has been properly completed and the implementation steps have occurred during the member’s lifetime.
If the pension member dies before a pension sharing order has taken effect, it will fail and cannot be enforced against the pension provider.
If the pension member dies after a pension sharing order has taken effect but before implementation, the pension debit is still effective. If the person receiving the pension credit dies before the pension sharing order has taken effect, the order will lapse.
If the person receiving the pension credit dies after the order has taken effect but before implementation, the pension arrangement should be contacted immediately and advice sought from a pension on divorce expert.
It is standard for pension sharing orders to include a provision that if the transferee were to die before implementation, then their personal representatives will provide consent to an application by the pension member for permission to appeal to the Family Court out of time.
Practical Steps to Protect Your Position
- Update your will.
- Consider how joint property is held and consider severing joint tenancies so the right of survivorship does not apply, and you can pass your share according to your will.
- Review life insurance and nomination forms.
- If a financial agreement has been reached, incorporate the agreement into a consent order to be lodged with the court for approval as soon as possible.
- Consider issuing financial remedy proceedings if necessary to ensure a financial settlement is progressed promptly and to avoid uncertainty.
Contact Our Family Team
If you’re facing the added complexity of a spouse or civil partner passing away during divorce proceedings, our experienced Divorce Solicitors are here to help. We provide compassionate and clear advice to protect your interests. Get in touch with our Family Law Team today.