When couples separate or go through a divorce and begin making financial arrangements, family lawyers are often asked: does bad behaviour affect a divorce settlement?
Generally, in most cases, the answer is no as a result of a high bar being set by previous cases. However, the recent case of LP v MP [2025] demonstrates that the approach may be changing.
A marriage built on deception
LP v MP [2025], involved extreme conduct by the wife towards the husband during a marriage lasting approximately 11-12 years.
From the outset of the relationship, the wife misled the husband about her career, falsely claiming she was on the path to becoming a High Court judge she maintained this deception throughout the marriage, fabricating stories about studying for higher degrees and travelling on academic trips. The false claims led to the transfer of substantial sums of money to her from the husband over the years.
Background
The parties met in 2010, married in 2011 and separated in 2023.
Prior to the marriage, the husband was already wealthy, with assets worth approximately £21.6 million.
In earlier proceedings concerning their child, the court found that the parties’ child had suffered serious emotional harm after witnessing incidents of physical violence perpetrated by the wife against the husband. The court also found the wife had subjected the husband to coercive control, serious physical and emotional abuse and that she had made false allegations of serious sexual offences against the husband.
What assets were involved?
A large proportion, approximately £22 million, was brought into the marriage by the husband.
Two homes, worth several million pounds, were owned jointly and treated as matrimonial assets, although the wife had made no financial contributions to acquiring those properties. In addition, a further property owned by the wife but funded significantly by the husband was also added to the matrimonial “pot”.
How does the court usually deal with the division of assets upon divorce?
In financial remedy proceedings, the starting point in the division of assets upon divorce is that marital assets (those accrued during the marriage or which are a product of the marriage) are divided equally between parties, however the court can depart from that principle in certain circumstances.
Does bad behaviour usually affect a financial settlement?
The court must have regard to several factors, one of which is the conduct (bad behaviour) of the parties if is such that it would be inequitable to disregard it.
However, in practice, it is very rare that bad behaviour impacts a financial settlement. The courts generally require behaviour to amount to “obvious and gross” misconduct along with case law setting out that bad behaviour must have a direct financial consequence for it to alter a settlement. This has been subject to much debate, with calls for reform to better protect victims.
In this case, however, the judge described the wife’s conduct as “deplorable” and said it would be the “glass” through which the case must be viewed, i.e. the behaviour shaped the court’s overall sense of fairness. Importantly, the judge said that even if financial loss caused by the misconduct cannot be precisely measured, that does not mean it should be ignored.
What was the final outcome?
The wife’s 50% share was reduced by 40% on account of her lack of contribution, considered through the glass of her conduct.
Her award was then further reduced to reflect money she had already taken during the marriage, funds transferred overseas and money spent on a houseboat.
The final payment due to her was £750,000; significantly less than she would have received under an equal division. The court also said her financial “needs” would not be assessed generously because of her behaviour.
So, does bad behaviour affect a divorce settlement?
In most cases, it does not. However, LP v MP [2025] shows where misconduct is particularly serious, the court may take it into account when deciding how assets should be divided between parties even in the absence of a clear, direct financial consequence.
Why is this case significant?
This decision in LP v MP shows that:
- Serious conduct can reduce a spouse’s financial award.
- The court does not need to calculate an exact financial loss before taking conduct into account.
- While equal sharing is the starting point, fairness can justify a substantial departure.
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