Financial Settlements

Image by Envato

Coercive Control, Marital Conduct and Financial Remedies

Rachel Cook
Rachel Cook
Of Counsel
Peters &Peters

Recent reporting of the decision in LP v MP [2025] EWFC 473 has brought renewed attention to an issue that continues to evolve within family law: the extent to which coercive and controlling behaviour can directly affect financial outcomes on divorce.

In that case, the Family Court reduced one party’s entitlement significantly, awarding 30% of the relevant assets rather than an equal share. The court did so having made findings, to the civil standard, that the party had engaged in coercive and controlling behaviour alongside other “deplorable” conduct.

The underlying facts were striking. The parties married in 2011 and separated in 2023. The relationship appears to have been characterised by deception on the wife’s part, including a claim that she was a High Court judge, despite having no legal training or qualifications.

During the marriage, the husband alleged coercive and controlling behaviour, alongside verbal, emotional and, in later years, serious physical abuse. Those allegations had already been examined in earlier Children Act proceedings, where they were found to be truthful. The court also found breaches of a non-molestation order and that the wife had made false and malicious allegations of sexual abuse against the husband in relation to their child.

Against that background, the Family Court was required to determine what constituted a fair financial outcome.

From a criminal law perspective, what is striking is not only the outcome, but how familiar the underlying allegations are. Conduct of this nature is routinely encountered within the criminal justice system. Increasingly, however, patterns of behaviour are being examined at the same time in family proceedings.

Understanding coercive and controlling behaviour

Coercive and controlling behaviour is widely recognised as a form of domestic abuse. It describes a pattern of conduct designed to control, isolate or intimidate another person over time. This may include psychological abuse, financial control, monitoring of communications, or restricting independence.

Since 2015, such behaviour has also constituted a criminal offence under section 76 of the Serious Crime Act. Criminal practitioners are therefore accustomed to seeing these patterns assessed through investigation and, where appropriate, prosecution.

Its role in financial remedy proceedings has been less straightforward. Courts have traditionally been cautious about allowing conduct to influence financial awards unless there is a clear and measurable financial consequence.

LP v MP and the question of fairness

The decision in LP v MP reflects a more nuanced approach.

The court found that the wife had engaged in coercive and controlling behaviour, including emotional, physical and financial abuse. Those findings were made on the balance of probabilities and informed by earlier proceedings. A criminal prosecution was ongoing, but the court declined to delay the financial determination.

In considering the impact of that conduct, the court acknowledged the high threshold for taking conduct into account. At the same time, it recognised that the effects of coercive control may not be readily quantifiable in financial terms.

The judge emphasised that there is a real risk of unfairness if such behaviour is disregarded simply because its financial consequences cannot be precisely measured. Conduct was not treated as requiring a penalty, but as part of the lens through which fairness is assessed.

This suggests a greater willingness to engage with the broader effects of coercive control when determining a fair outcome.

One set of allegations, two legal systems

For those approaching these issues from a criminal law perspective, the more complex question lies in how the same allegations are handled across different jurisdictions.

Conduct which may give rise to a criminal investigation is often relied upon simultaneously in family proceedings. Yet the two systems operate differently.

Criminal proceedings require proof beyond reasonable doubt and are directed toward public justice. Family proceedings apply the balance of probabilities and focus on welfare and fairness between individuals. The same allegations may therefore be assessed under different standards and for different purposes.

This divergence has real consequences for how and when findings are made.

Timing and evidential tension

One of the most significant challenges arises from timing.

Criminal investigations into coercive and controlling behaviour are often lengthy. Charging decisions may take many months, with any trial much later.

Family proceedings, by contrast, are expected to progress more quickly. Fact-finding hearings may therefore take place while a criminal investigation remains ongoing.

From a criminal perspective, this creates difficulty. Individuals may be required to give detailed accounts in family proceedings, sometimes under cross-examination, before the criminal disclosure process has engaged and before the evidential picture is complete.

At the same time, family courts may be asked to determine serious allegations without access to material that has not yet emerged through the criminal investigation.

The two systems may therefore be examining the same conduct at different stages of evidential development.

Practical risks in parallel proceedings

These differences give rise to practical risks.

Allegations made to the police may be relied upon within family proceedings before they have been fully tested. The existence of an investigation may influence interim decisions or shape the narrative of a case.

Conversely, the need to progress family proceedings may require detailed allegations to be set out at an early stage. Those accounts may later be scrutinised within the criminal process.

Consistency of account becomes critical, but the objectives of each forum may not align. What assists in family proceedings may not do so in a criminal context, and vice versa.

This reflects a structural tension. Once parallel processes are engaged, decisions in one forum can have unintended consequences in the other.

Navigating an increasingly complex landscape

For practitioners, these cases require careful handling from the outset.

From a criminal law perspective, there is a need to be alert to how and when allegations are advanced in family proceedings, and to the potential impact of early evidence on any future investigation or prosecution. Family proceedings, however, are not simply be paused while the criminal process runs its course.

These cases also highlight the importance of coordinated advice across both jurisdictions. Issues that arise in family proceedings may have direct implications for any criminal investigation, and vice versa. A joined-up approach, drawing on both family and criminal expertise, is often essential to ensure that decisions taken in one forum do not inadvertently prejudice a position in the other.

For those directly involved, there may be an expectation that one system will resolve the issues raised in the other. In reality, the two operate independently, and outcomes may not align.

Moving forward

The growing recognition of coercive and controlling behaviour across both criminal and family law represents an important development. Decisions such as LP v MP suggest a greater willingness within the family courts to reflect that understanding when assessing fairness, including in financial outcomes.

At the same time, the increasing overlap between jurisdictions has introduced new complexity. The same allegations are now frequently considered in parallel, under different standards, on different timelines, and with different objectives.

From a criminal law perspective, these cases highlight a clear tension. They do not unfold within a single, coherent framework, but across two distinct systems that intersect without fully aligning.

Understanding that interplay, and navigating it with care, is becoming an essential part of modern practice.

Read more from Rachel Cook

Rachel Cook, Of Counsel, Peters & Peters

Rachel Cook is a criminal solicitor with extensive experience advising individuals and families at the intersection of criminal and family proceedings. She regularly advises clients at the police station and acts in complex cases involving allegations of coercive and controlling behaviour, domestic abuse and reputational risk. Rachel works closely with family law teams to provide strategic, joined up advice for clients navigating separation, child arrangements and parallel investigations.

Image by Freepik

Cryptoassets and Divorce: Why Digital Assets Are Becoming a Critical Part of Financial Disclosure

Louise Mackie
Louise Mackie
Tax Manager
Myna

Divorce proceedings are often financially complex. The increasing prevalence of cryptoassets is introducing an additional layer of difficulty for separating couples and their advisers.

As digital assets become more mainstream, they are appearing more frequently in financial settlements. Yet many individuals involved in divorce proceedings remain unfamiliar with how these assets are held, valued, or disclosed.

This lack of understanding can create a significant information gap. In some cases, one spouse may hold cryptoassets without the other fully appreciating what it is or how it works. In others, digital assets may simply be overlooked because they do not resemble traditional financial holdings such as bank accounts, pensions, or property.

For family lawyers and divorce practitioners, recognising when cryptoassets may form part of the financial landscape is becoming increasingly important.

Why crypto can be difficult to identify

Unlike traditional investments, cryptoassets are not always held through a centralised institution such as a bank or brokerage. Instead, it can be stored in digital wallets that are controlled directly by the owner. These wallets may exist as accounts on exchanges, mobile apps, hardware devices, or encrypted files that store cryptographic keys controlling the assets.

Because of this structure, digital assets may not appear clearly within standard financial documentation. Bank statements might show transfers to a cryptoasset exchange, but the assets themselves sit elsewhere. If an individual uses multiple exchanges or transfers assets between private wallets, tracing ownership can become more complex.

However, this does not mean cryptoassets are invisible. Most major blockchain networks record transactions permanently on a public ledger. The challenge is not that the information does not exist, but that it requires the right expertise to interpret it.

Indicators that digital assets may exist

In practice, there are often clues that cryptoasset holdings may be present. Transactions to well-known exchanges can appear on bank or credit card statements. References to trading platforms or crypto applications may also appear within financial records.

In some cases, individuals may disclose involvement in digital assets but underestimate or misunderstand the value of their holdings. Cryptoasset prices can fluctuate significantly, and assets acquired several years earlier may now be worth far more than originally expected.

For legal advisers, asking clear and direct questions about digital asset activity can be an important first step in ensuring that financial disclosure is complete.

Understanding how crypto is held

Cryptoassets can be stored in several ways. Many investors use exchanges that operate similarly to online trading platforms. Others move their assets into private wallets that they control directly. These wallets can exist as software applications or as physical devices designed to store cryptographic keys securely.

Transfers between wallets are common, and assets can move across different platforms quickly. As a result, reviewing the history of transactions is often necessary to understand where digital assets are currently held and how they have been managed over time.

This process may involve forensic accounting or specialist blockchain analysis in more complex cases.

Tax considerations in divorce settlements

When cryptoassets form part of a financial settlement, tax implications should not be overlooked. In the UK, cryptoassets are generally treated as property for tax purposes. Disposing of them, including selling, exchanging or transferring them in some circumstances, can trigger capital gains tax.

If one spouse transfers cryptoassets to the other as part of a divorce settlement, the timing and structure of that transfer can affect the tax outcome. In some situations, transfers between spouses or civil partners can often take place on a no gain, no loss basis for capital gains tax purposes. Since 2023, separating couples may have up to three tax years after separation to make such transfers.

Valuation is also important as cryptoasset prices can move quickly, agreeing on the value of digital assets at the time of settlement can be challenging.

Increasing transparency around digital assets

Regulatory reporting around cryptoassets is evolving rapidly. Exchanges are under increasing pressure to comply with anti-money laundering requirements and to share information with tax authorities. International initiatives such as the OECD Crypto-Asset Reporting Framework are designed to standardise how cryptoasset transactions are reported across jurisdictions. As these rules are implemented, tax authorities will gain greater visibility over digital asset activity held on regulated platforms.

While cryptoassets once carried a reputation for anonymity, the reality today is more nuanced. Blockchain technology creates permanent transaction records, and as regulatory frameworks develop, the ability to identify and analyse digital asset activity continues to improve.

A growing area of financial complexity

For many separating couples, cryptoassets will simply be one part of a broader financial picture. However, its presence can complicate disclosure and valuation if it is not properly understood.

The key for advisers and individuals alike is awareness and appropriate enquiry. Asking the right questions, recognising the signs that digital assets may exist, and seeking specialist

advice where necessary can help ensure that financial settlements are based on a complete and accurate view of the assets involved.

As digital assets continue to move into the financial mainstream, their role in divorce proceedings will likely become more common. Ensuring that both parties understand how these assets work is an important step toward achieving fair and transparent financial outcomes.

About Louise Mackie

Louise Mackie is a Tax Manager at Myna Accountants, where she leads the firm’s tax team and oversees the delivery of tax advisory and compliance services.

She works with a wide range of clients, including individuals and sole traders, with a particular focus on cryptoasset taxation.

Louise advises clients on the tax implications of digital asset transactions and investments, while also supporting those outside the crypto sector with personal and business tax planning, compliance, and practical guidance.

She is known for translating complex tax rules into clear, actionable advice, helping clients make informed financial decisions.

A Guide to Financial Settlement in Divorce
Photo by Scott Graham on Unsplash.
///

A Guide To Financial Settlement In Divorce

Chris Sweetman
Chris Sweetman
Director
Fair Results

One of the core parts of the divorce process is agreeing on a financial settlement. Especially now, with the introduction of no-fault divorce, it has become more straightforward to get divorced than ever.

However, you don’t want to be caught off guard by the future repercussions of a DIY divorce. Securing your financial future should be one of the main goals of any divorce. That’s why we’ve prepared a guide on the financial settlement.

In this article, Christ Sweetman from Fair Result is going to cover:

  • What is financial settlement?
  • What is included in the financial settlement?
  • How is child maintenance solved?
  • How can you prepare for the financial settlement?
  • Can you reach a financial settlement by yourself?
  • How does the court decide whether the settlement is fair?

What is financial settlement?

In simple terms, financial settlement in divorce is an agreement between you and your ex-spouse on how to divide financial assets after the dissolution of your marriage or civil partnership.

The settlement can be decided on during any point of the divorce proceedings/civil partnership dissolution. Nevertheless, we would recommend signing a consent order before applying for the Final Order (formerly known as Decree Absolute).

The court usually isn’t involved until the legally binding consent order is signed – stating that both parties agree with the terms. Once the order is drafted & agreed upon, the court needs to approve it. Although, there may be exceptions when divorcees can’t agree between themselves, and the court will be required to intervene.

What is included in the financial settlement?

Matrimonial assets (financial assets acquired during the marriage) are divided as fairly as possible – the starting point of the negotiations is usually 50/50. Whilst non-matrimonial assets (financial assets acquired before the marriage) can be protected by a pre-nuptial agreement and may not get shared.

The financial settlement can include:

  • Money (investments, insurance policies, savings)
  • Property (houses, apartments, rental properties, and holiday homes)
  • Child maintenance
  • Household contents
  • Cars
  • Pension funds
  • Business interests
  • Personal items (over £500)
  • Debts, loans, and credit cards

Moreover, stay vary of the division of mortgages and debt that were accumulated throughout the marriage (otherwise known as matrimonial debt). Since matrimonial debt can be split between both parties as long as the loan was taken out for the benefit of both spouses.

How is child maintenance solved?

In its essence, both parents are legally required to support their children financially. Usually, the parent who doesn’t have regular care of the children – must pay child maintenance.

The maintenance must be paid if a child is:

  • under 16 years old
  • under 20 years old but in full-time non-advanced education (e.g., A-levels)
  • 16-17 years old, no longer in full-time education but has registered for work/training with a careers service.

An agreement can be reached between the spouses regarding children. Alternatively, the Child Maintenance Services can work out child maintenance instead. They will determine how much money needs to be paid to the parent whom the children live with. The decision is mainly based on income & financial commitments.

Additionally, if the spouse that needs to pay maintenance doesn’t live in the UK – an application can be made to the court for a child maintenance order.

How can you prepare for the financial settlement?

The best thing you can do to prepare for a financial settlement is to sort out your personal finances. As well as, roughly agreeing with your ex-spouse who continues to pay the bills and who gets what assets.

If you have any joint bank accounts, matrimonial debt, or credit cards – contact your provider as soon as you can to let them know you’re going through a divorce. Also, make sure your salary or benefits go to a separate account that’s only in your name.

In cases where you can’t trust your ex to not spend money from a joint account, you can freeze your bank cards.

Furthermore, it’s important to evaluate your current finances as an individual and a couple. Make sure to take note of: what you own; how much you owe to each other; what a potential split in assets would look like. Lastly, you should figure out how will the pensions be split.

Can you reach a financial settlement by yourself?

If you’re living in England or Wales – reaching a financial settlement in divorce by yourself is an option. This would come in a form of the consent order, which is a legally binding document that outlines the division of assets & child maintenance.

Once the order is drafted & signed, you’ll need to send copies to the court asking for final approval. This costs £53. Although, to guarantee that your consent order is legally binding you should hire a solicitor.

It’s not recommended to draft your own consent order under normal circumstances. But it’s especially important to hire a solicitor if your financial situation is complex (e.g., you’ve multiple business or property assets), you’ve been married for a long period, or communication has broken down between you and your ex.

Reaching a consent order outside the court can not only speed up your divorce process but also reduce costs. As long as the court thinks the order is fair – it will get approved without any additional court hearings.

How does the court decide whether the settlement is fair?

The court follows the guidelines set out in section 25 of the Matrimonial Causes Act to rule on the division of assets. These include:

  • Existing and future financial assets – the considerations begin with complete financial asset disclosure by both parties. Then the existing assets are evaluated, including how earning potential may change in the future.
  • Current and future financial needs – similarly to future potential earnings, the court evaluates the financial needs of both spouses. Fundamentally, the court looks at moving/re-housing costs and which party will be the primary caretaker of the children. Both parties will also be asked to provide estimated expenses to help with the ruling.
  • Standard of living before the divorce – the court tries to sustain the same standards of living, as before the divorce, for both parties. Although, this is rarely achievable, and a more likely scenario is that both spouses’ standard of living falls.
  • The age of the spouses & marriage duration – in situations where the marriage is short, financial contributions made before the marriage become more important. Whilst if the marriage is long and both spouses are older earning potential, childcare, and pensions suddenly become more important.
  • Spouses’ physical and mental health – this isn’t a common factor during considerations. But when it’s applicable the court will ask for a medical professional to provide evidence.
  • Contributions made for the benefit of the family – this tends to be a highly contested point during the financial settlement. As the Matrimonial Causes Act outlines any contributions made to looking after the home or caring for the family count. So, for example, if one spouse works, while the other takes care of the children – they would be considered equal contributors. On the other hand, things can get more complicated if one spouse brought in high-value assets into the marriage, received an inheritance, or accumulated substantial wealth after separation. In cases like these, the court will consider additional factors.

Final thoughts

Overall, having a signed and approved consent order is the first step you need to take to secure your financial future after divorce. To ensure that you won’t face any negative repercussions after the divorce – hiring a solicitor, to help you with your financial settlement, could be your best choice.

Click here for more articles from Fair Results

About Chris Sweetman

Chris Sweetman is an independent family solicitor and director of Fair Result – An award-winning law office who pride themselves on using innovative ways to help clients through the stress and complications of a marriage break down.

Chris can be contacted on 07500933818 or via email chris@fair-result.co.uk.