What is a Section 25 Statement in Divorce Proceedings?

Please note: this article is intended for informational purposes only and should not be considered legal advice. If you have any questions about Section 25 statement or need assistance drafting one, please contact our family law solicitors by calling us on 02037442797 or completing our enquiry form.

What is Section 25 of the Matrimonial Causes Act?

Section 25 of the Matrimonial Causes Act 1973 provides the statutory framework that the family court must apply when deciding what financial orders to make on divorce or nullity of marriage in England and Wales. In other words, it sets out the factors the court must consider when deciding how to divide finances on divorce.

It is important to understand that Section 25 of the Matrimonial Causes Act 1973 does not use a fixed formula or percentage split. Nor does it punish a spouse for behaviour such as infidelity. Instead, it gives judges a discretionary checklist that allows them to reach a fair outcome tailored to the circumstances of each case.

The court’s first consideration must always be the welfare of any minor children of the family. Once that is addressed, the judge will consider the Section 25 factors when deciding how assets, income, and financial obligations should be divided between the parties. The main Section 25 factors include:

• Income, earning capacity, property and other financial resources – including what each party currently has and what they are likely to have in the foreseeable future. It also covers earning capacity, including any reasonable increase a party might be expected to develop
• Financial needs, obligations and responsibilities – looks at what each party needs both now and in the future, including ongoing costs such as housing, living expenses, and obligations such as child support
• Standard of living before the breakdown – the court considers what lifestyle the family enjoyed during the marriage, and how the settlement should reflect that
• Age and duration of marriage – age and the length of the marriage both affect how the court views fairness. A younger party typically has more years to earn and rebuild financially after divorce. A longer marriage usually means greater financial interdependence and a stronger claim to sharing of resources, whereas a shorter marriage may result in a more limited award.
• Physical or mental disability – health conditions that affect a party’s earning capacity or financial needs are relevant
• Contributions to the family – includes both financial contributions (such as earning income) and non-financial ones (such as homemaking and childcare). Both are given equal weight
• Conduct – this is only relevant if it is so inequitable that the court considers it wrong to disregard it
• Lost benefits from the ending of the marriage – e.g. lost pension entitlement

What is a Section 25 statement?

A Section 25 statement is a document that sets out your case for how Section 25 of the Matrimonial Causes Act should be applied to your situation. It explains your financial position, your needs, your contributions to the marriage, and why you believe the settlement you are seeking is fair. The statement is not mandatory, and it is not an automatic requirement in every divorce. Rather, it is a supporting document that the court may direct you to file, typically when the case is progressing towards a final hearing or when the judge needs clarification of the parties’ positions.

A Section 25 statement does not replace your Form E (financial statement). Form E is your comprehensive financial disclosure, listing all income, assets, and liabilities with supporting documents. Your Section 25 statement instead explains why those figures matter and how they support your case. When you do file a Section 25 statement, it is treated as your main evidence and carries substantial weight. Instead of giving lengthy oral evidence at the final hearing, the judge will rely heavily on what you have written. For this reason, every word matters.

A Section 25 statement is typically required in the following situations:

• When you cannot reach an agreement out of court and apply for a financial order or financial remedy, if you and your spouse cannot settle the financial side of your divorce through negotiation, one party will apply to the court (using Form A) for a financial order. The court will then direct the parties through disclosure and may order Section 25 statements to be filed.
• At a Financial Dispute Resolution (FDR) hearing. This is a preliminary hearing where the judge provides guidance on settlement. The court may order one or both parties to submit a Section 25 statement in advance so the judge has a clear picture of each party’s position before the hearing.
• When there is a dispute over financial matters involving complex assets or contested claims. Where the case involves disputes over property division, maintenance, pensions, children’s financial needs, or contested claims about assets, the court may direct Section 25 statements to help both sides set out their case clearly.

It is important to note that the courts set strict deadlines for filing a Section 25 statement. If you miss the deadline without a good reason or the court’s permission, your statement may be excluded from evidence entirely. Missing a deadline usually triggers an expensive emergency application, and permission to file late is not guaranteed.

How to write Section 25 Statement

A Section 25 statement must be backed up by strong evidence that is factual and structured around the Section 25 factors. It should not contain arguments, personal opinions, or emotional language. Every statement should explain your situation clearly so the judge can apply the law to the facts.

Your statement should focus on four main areas:

1. Explain your needs, especially housing and income needs, both now and in the future
2. Show how each of the Section 25 factors applies to your situation
3. Third, justify the financial outcome you are asking for by reference to those factors, and
4. Help the judge understand your case more quickly by presenting the key evidence in a logical way.

When drafting a Section 25 statement, it is advisable to use the following structure:

• Overview of your situation: Briefly set out key background details, including both parties’ names and dates of birth, the date of marriage and separation, the date the divorce was issued, whether there are children (and who they live with), and the current stage of proceedings.
• Income and earning capacity: Explain your current income, employment, salary, and benefits. If self-employed, outline your business and earnings. If not working, explain why and whether future employment is realistic. Include any pension income, investments, or other regular income.
• Assets and financial resources: Summarise the main assets, including property, savings, investments, and pensions. Refer to Form E for detail, but highlight key points, such as the value of the family home and whether you believe it should be sold or retained.
• Financial needs and responsibilities: Set out your future housing and living needs, including childcare costs, debts, and ongoing commitments. Explain why these needs are reasonable and, where relevant, outline the needs of any dependent children.
• Contributions to the marriage: Describe both financial and non-financial contributions, such as earning income, caring for children, managing the household, or supporting the other party’s career. The court treats these contributions as equally important.
• Maintenance: Explain whether you seek spousal maintenance and, if so, the proposed amount and duration, or whether you consider a clean break to be appropriate.
• Other relevant factors: Briefly mention any additional circumstances that may affect the outcome, such as health issues, caring responsibilities, redundancy, or significant changes in circumstances.

Reference:

Section 25 of the Matrimonial Causes Act 1973