Does Conduct Affect Financial Settlements in Divorce?

Does Conduct Affect Financial Settlements in Divorce? | Friday 20 February 2026 | 4 min read

When a relationship breaks down, emotions understandably run high. A common question is: will the court take bad behaviour or conduct by the other party into account?

The short answer is yes, but only in limited circumstances, and the threshold is high.

Understanding when conduct makes a difference in financial proceedings (and when it doesn’t) can help you focus your time, energy and legal costs where they will make the greatest difference.

The legal position: Fairness comes first

Financial settlements in England and Wales are decided under the Matrimonial Causes Act 1973. The court considers a range of factors, including:

“the conduct of each of the parties, if that conduct is such that it would in the opinion of the court be inequitable to disregard it.”

That wording is important. Conduct is only likely to make a difference if it would be unfair to ignore it.

The court’s primary focus is fairness, financial needs and available resources, and it is not trying to redress behaviour by either party during the marriage unless it would be unfair to disregard it.

When Conduct is likely to matter

Over time, the courts have identified four broad situations where conduct may be relevant:

1. Serious Personal Misconduct

Behaviour that is so serious it would be plainly unjust to overlook. This is sometimes described as “gross and obvious” conduct. The threshold is high.

2. Dissipation of Assets (“Add-Back” Cases)

If someone has deliberately or recklessly spent, hidden or diverted money that should have been shared, for example, through gambling, transferring funds away, or significantly extravagant spending, the court may treat those assets as if they still exist.

3. Litigation Misconduct

Unreasonable behaviour within the court process itself, such as ignoring court orders or failing to engage properly. This can affect legal costs. Under the Family Procedure Rules 2010, the court can order one party to pay the other’s costs in appropriate cases.

4. Failure to provide proper financial disclosure

If someone is evasive or conceals information, the court can draw adverse inferences and assume assets exist unless proven otherwise.

What about Domestic or Economic abuse?

This is an area receiving increasing judicial attention.

Where there is serious economic abuse, such as controlling access to money, removing funds from joint accounts or deliberately placing assets out of reach, the court may consider this as part of the overall fairness assessment.

Similarly, proven patterns of coercive or controlling behaviour may be relevant, particularly where they have had financial consequences. While not every allegation will change the outcome, the courts are increasingly aware that some forms of misconduct can have long-term economic impact, even if the exact loss is difficult to calculate.

Two key questions the court will ask

If conduct is raised, the judge will typically consider:

1. Does this behaviour cross the high threshold?
2. If so, how should it affect the financial outcome, bearing in mind needs and resources?

Historically, courts looked for a clear, measurable financial impact. Recent decisions suggest a slightly broader approach: in serious cases, conduct may influence how fairness is assessed overall, even where the financial effect cannot be neatly itemised.

However, weak or tactical conduct arguments are actively discouraged. Raising conduct unnecessarily can increase legal costs and distract from the central issues of needs and division.

A Practical Perspective

For many separating couples, focusing on practical financial realities, housing, income, pensions and children’s needs will be far more important than arguing about past behaviour.

Conduct arguments tend to be appropriate only where there has been:

• Serious deception or financial misconduct
• Clear dissipation of assets
• Significant economic abuse
• Obstructive or unreasonable behaviour in proceedings

Even then, careful legal advice is essential. Conduct allegations can lengthen proceedings and increase costs, and the evidential threshold is challenging.

For tailored advice on how conduct may affect your financial settlement, early specialist guidance can make a real difference. To discuss your situation in confidence with one of our family law solicitors, please get in touch.

TALK TO US

• 

  Mark
  Chiverton Senior Associate Solicitor
  Family Law Team

  • Phone 01727 798 061
  • Email mark.chiverton@salaw.com