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Family Law (Scotland) Act 1985 - Section 10: Matrimonial Property Sharing, Exams of Family Law

Section 10 of the Family Law (Scotland) Act 1985, which deals with the sharing of matrimonial property. The section explains how the net value of the matrimonial property is calculated, taking into account debts and special circumstances. It also includes provisions for the calculation and verification of PPF compensation and apportionment of PPF compensation.

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2021/2022

Uploaded on 09/27/2022

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Changes to legislation: There are currently no known outstanding effects for the
Family Law (Scotland) Act 1985, Section 10. (See end of Document for details)
Family Law (Scotland) Act 1985
1985 CHAPTER 37
Financial provision on divorce, etc.
10 Sharing of value of matrimonial property.
(1) In applying the principle set out in section 9(1)(a) of this Act, the net value of the
matrimonial property [F1or partnership property] shall be taken to be shared fairly
between [F2persons] when it is shared equally or in such other proportions as are
justified by special circumstances.
(2) [F3Subject to subsection (3A) below,] the net value of the F4... property shall be the
value of the property at the relevant date after deduction of any debts incurred by
[F5one or both of the parties to the marriage or as the case may be of the partners]
(a) before the marriage so far as they relate to the matrimonial property [F6or
before the registration of the partnership so far as they relate to the partnership
property], and
(b) during the marriage [F7or partnership],
which are outstanding at that date.
(3) In this section “the relevant date” means whichever is the earlier of—
(a) subject to subsection (7) below, the date on which the [F8persons] ceased to
cohabit;
(b) the date of service of the summons in the action for divorce [F9or for
dissolution of the civil partnership].
[F10(3A) In its application to property transferred by virtue of an order under section 8(1)(aa)
of this Act this section shall have effect as if—
(a) in subsection (2) above, for “relevant date” there were substituted
appropriate valuation date ”;
(b) after that subsection there were inserted—
“(2A) Subject to subsection (2B), in this section the “appropriate valuation
date” means—
pf3
pf4
pf5

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Changes to legislation: There are currently no known outstanding effects for the Family Law (Scotland) Act 1985, Section 10. (See end of Document for details)

Family Law (Scotland) Act 1985

1985 CHAPTER 37

Financial provision on divorce, etc.

10 Sharing of value of matrimonial property.

(1) In applying the principle set out in section 9(1)(a) of this Act, the net value of the

matrimonial property [F1 or partnership property ] shall be taken to be shared fairly

between [F2 persons ] when it is shared equally or in such other proportions as are

justified by special circumstances.

(2) [F3 Subject to subsection (3A) below, ] the net value of the F4 ... property shall be the

value of the property at the relevant date after deduction of any debts incurred by

[F5 one or both of the parties to the marriage or as the case may be of the partners ] —

(a) before the marriage so far as they relate to the matrimonial property [F6 or

before the registration of the partnership so far as they relate to the partnership

property ] , and

(b) during the marriage [F7 or partnership ] ,

which are outstanding at that date.

(3) In this section “the relevant date” means whichever is the earlier of—

(a) subject to subsection (7) below, the date on which the [F8 persons ] ceased to

cohabit;

(b) the date of service of the summons in the action for divorce [F9 or for

dissolution of the civil partnership ].

[F10 (3A) In its application to property transferred by virtue of an order under section 8(1)(aa)

of this Act this section shall have effect as if—

(a) in subsection (2) above, for “relevant date” there were substituted “

appropriate valuation date ”;

(b) after that subsection there were inserted—

“(2A) Subject to subsection (2B), in this section the “appropriate valuation

date” means—

Document Generated: 2021-09- Changes to legislation: There are currently no known outstanding effects for the Family Law (Scotland) Act 1985, Section 10. (See end of Document for details)

(a) where the parties to the marriage or, as the case may be, the

partners agree on a date, that date;

(b) where there is no such agreement, the date of the making of

the order under section 8(1)(aa).

(2B) If the court considers that, because of the exceptional circumstances

of the case, subsection (2A)(b) should not apply, the appropriate

valuation date shall be such other date (being a date as near as may

be to the date referred to in subsection (2A)(b)) as the court may

determine.”; and

(c) subsection (3) did not apply. ]

(4) Subject to [F11 subsections (5) and (5A) ] below, in this section and in section 11 of

this Act “the matrimonial property” means all the property belonging to the parties or

either of them at the relevant date which was acquired by them or him (otherwise than

by way of gift or succession from a third party)—

(a) before the marriage for use by them as a family home or as furniture or

plenishings for such home; or

(b) during the marriage but before the relevant date.

[F12 (4A) Subject to [F13 subsections (5) and (5A) ] below, in this section and in section 11 of

this Act “the partnership property” means all the property belonging to the partners

or either of them at the relevant date which was acquired by them or by one of them

(otherwise than by way of gift or succession from a third party)—

(a) before the registration of the partnership for use by them as a family home or

as furniture or plenishings for such a home, or

(b) during the partnership but before the relevant date. ]

(5) The proportion of any rights or interests of either [F14 person ]

[F15 (a) ] under a life policy [F16 or similar arrangement; and

(b) in any benefits under a pension [F17 arrangement ] which either [F14 person ] has

or may have (including such benefits payable in respect of the death of either

party),

which is ] referable to the period to which subsection (4)(b) [F18 or (4A)(b) ] above refers

shall be taken to form part of the matrimonial property [F19 or partnership property ].

[F20 (5A) Where either person is entitled to [F21 PPF compensation ] , the proportion of the

compensation which is referable to the period to which subsection (4)(b) or (4A)(b)

above refers shall be taken to form part of the matrimonial property or partnership

property. ]

(6) In subsection (1) above “special circumstances”, without prejudice to the generality

of the words, may include—

(a) the terms of any agreement between the [F22 persons ] on the ownership or

division of any of the matrimonial property [F23 or partnership property ] ;

(b) the source of the funds or assets used to acquire any of the matrimonial

property [F24 or partnership property ] where those funds or assets were not

derived from the income or efforts of the [F25 persons ] during the marriage

[F24 or partnership ] ;

(c) any destruction, dissipation or alienation of property by either [F26 person ] ;

(d) the nature of the matrimonial property [F27 or partnership property ] , the use

made of it (including use for business purposes or as a [F28 family ] home) and

Document Generated: 2021-09- Changes to legislation: There are currently no known outstanding effects for the Family Law (Scotland) Act 1985, Section 10. (See end of Document for details) F8 Word in s. 10(3)(a) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(c), Sch. 28 para. 16(4)(a) ; S.S.I. 2005/604, arts. 2(c), 4 F9 Words in s. 10(3)(b) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(c), Sch. 28 para. 16(4)(b) ; S.S.I. 2005/604, arts. 2(c), 4 F10 S. 10(3A) inserted (4.5.2006) by Family Law (Scotland) Act 2006 (asp 2), ss. 16(b) , 46(2); S.S.I. 2006/212, art. 2 (with art. 4) F11 Words in s. 10(4) substituted (4.5.2006) by Family Law (Scotland) Act 2006 (asp 2), ss. 17(3)(a) , 46(2); S.S.I. 2006/212, art. 2 F12 S. 10(4A) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(c), Sch. 28 para. 16(5) ; S.S.I. 2005/604, arts. 2(c), 4 F13 Words in s. 10(4A) substituted (4.5.2006) by Family Law (Scotland) Act 2006 (asp 2), ss. 17(3)(a) , 46(2); S.S.I. 2006/212, art. 2 F14 Word in s. 10(5) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(c), Sch. 28 para. 16(6)(a) ; S.S.I. 2005/604, arts. 2(c), 4 F15 Letter in s. 10(5) inserted (19.8.1996) by 1995 c. 26, s. 167(2)(a)(i) ; S.I. 1996/1843, art. 3(b) (with art. 4 ) F16 Words in s. 10(5) substituted (19.8.1996) by 1995 c. 26, s. 167(2)(a)(ii) ; S.I. 1996/1843, art. 3(a) (with art. 4) F17 Word in s. 10(5)(b) substituted (1.12.2000) by 1999 c. 30, s. 84, Sch. 12 Pt. I para. 8(1)(2) ; S.I. 2000/1047, art. 2(2)(d), Sch. Pt. IV F18 Words in s. 10(5) inserted (4.5.2006) by Family Law (Scotland) Act 2006 (asp 2), ss. 17(3)(b) , 46(2); S.S.I. 2006/212, art. 2 F19 Words in s. 10(5) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(c), Sch. 28 para. 16(6)(b) ; S.S.I. 2005/604, arts. 2(c), 4 F20 S. 10(5A) inserted (4.5.2006) by Family Law (Scotland) Act 2006 (asp 2), ss. 17(3)(c) , 46(2); S.S.I. 2006/212, art. 2 F21 Words in s. 10(5A) substituted (6.3.2011 for specified purposes, 6.4.2011 in so far as not already in force) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 7 para. 4(a) ; S.I. 2011/664, art. 2(2)(3), Sch. Pts. 1 , 2 F22 Word in s. 10(6)(a) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(c), Sch. 28 para. 16(7)(a) ; S.S.I. 2005/604, arts. 2(c), 4 F23 Words in s. 10(6)(a) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(c), Sch. 28 para. 16(7)(a) ; S.S.I. 2005/604, arts. 2(c), 4 F24 Words in s. 10(6)(b) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(c), Sch. 28 para. 16(7)(b) ; S.S.I. 2005/604, arts. 2(c), 4 F25 Word in s. 10(6)(b) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(c), Sch. 28 para. 16(7)(b) ; S.S.I. 2005/604, arts. 2(c), 4 F26 Word in s. 10(6)(c) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(c), Sch. 28 para. 16(7)(c) ; S.S.I. 2005/604, arts. 2(c), 4 F27 Word in s. 10(6)(d) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(c), Sch. 28 para. 16(7)(d) ; S.S.I. 2005/604, arts. 2(c), 4 F28 Words in s. 10(6)(d) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(c), Sch. 28 para. 16(7)(d) ; S.S.I. 2005/604, arts. 2(c), 4 F29 Words in s. 10(6)(e) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(c), Sch. 28 para. 16(7)(e) ; S.S.I. 2005/604, arts. 2(c), 4 F30 Word in s. 10(7) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(c), Sch. 28 para. 16(8) ; S.S.I. 2005/604, arts. 2(c), 4 F31 S. 10(8)-(11) inserted (15.7.1996 for certain purposes only and 19.8.1996 otherwise) by 1995 c. 26, s. 167(2)(b) ; S.I. 1996/1843, art. 3 (with art. 4) F32 S. 10(8) substituted (15.4.2000) by 1999 c. 30, s. 84, Sch. 12 Pt. I para. 8(1)(3) (with s. 91(4)); S.S.I. 2000/111, art., 2 F33 S. 10(8A) inserted (15.4.2000) by 1999 c. 30, s. 84, Sch. 12 Pt. I para. 8(1)(4) (with s. 91(4)); S.S.I. 2000/111, art. 2

Document Generated: 2021-09-

Changes to legislation: There are currently no known outstanding effects for the Family Law (Scotland) Act 1985, Section 10. (See end of Document for details) F34 S. 10(8B)(8C) substituted for s. 10(8B) (6.3.2011 for specified purposes, 6.4.2011 in so far as not already in force) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 7 para. 4(b) ; S.I. 2011/664, art. 2(2)(3), Sch. Pts. 1, 2 F35 Words in s. 10(9) inserted (4.5.2006) by Family Law (Scotland) Act 2006 (asp 2), ss. 17(3)(e) , 46(2); S.S.I. 2006/212, art. 2 F36 Words in s. 10(9) inserted (1.12.2000) by 1999 c. 30, s. 84, Sch. 12 Pt. I para. 8(1)(5) ; S.I. 2000/1047, art. 2(2)(d), Sch. Pt. IV F37 S. 10(10)(11) repealed (1.12.2000) by 1999 c. 30, s. 84, 88 , Sch. 12 Pt. I para. 8(6), Sch. 13 Pt. II ; S.I. 2000/1047, art. 2(2)(d), Sch. Pt. IV