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Category Archives: Insight Article

Terms and conditions for small businesses

Posted on August 22, 2024 - 11:04 am by
graphic of terms and conditions popping up from laptop

The business landscape, especially for small businesses, can often seem like a minefield. The key to successfully navigating this lies in establishing comprehensive standard terms and conditions (T&Cs). These T&Cs act as a compass, guiding the business relationship between you and your customers. This article delves into the importance of T&Cs, their components, and how to craft and update them effectively.

What are terms and conditions?

T&Cs, also known as business terms, terms of sale, or terms of service, are the legal contract between you and your customer for your supply of goods or services. They are the conditions on which you agree to do business with someone else, often on a non-negotiable take-it-or-leave-it basis. In the UK, businesses must have T&Cs in place to protect themselves and their customers.

The importance of terms and conditions

T&Cs are vital in setting out what you have agreed with a client or presenting the inflexible terms under which you will accept business. They define the contract, act as a record of it, set out your business procedures, protect your business and your rights and limit your liability. Even if you are selling a low-value product or service, a disagreement with a client can take up significant time and possibly lead to reputational damage. Hence, having a comprehensive set of T&Cs is good business practice and a trust-building measure with customers.

Components of terms and conditions

A well-constructed T&Cs document should include the following provisions:

Definition of the contract’s basis or subject matter

Your T&Cs should clearly state what you are selling. The products and/or services could be described in detail or referred to in another document, such as a sales brochure or your website.

Price

You should include all variations, circumstances, and provisions for price increases.

Payment terms

This section should set out how and when you want to be paid. Your contract should also include provisions for non-payment and late payment.

Definition of the services procedures

The amount of detail you should provide depends on your business. Avoid cluttering your T&Cs with half-promises and sales talk.

Provisions relating to carriage, delivery, risk and insurance

Every business selling goods has its T&Cs to cover this area of activity.

What happens while the contract runs?

If a contract for services is to take place over a period of time, you might want to explain who will be responsible for which aspects of the services while the contract runs. Depending on the nature of the service to be delivered, there can be any number of contract clauses.

Termination provisions

You need to consider the length of your contract, the trigger for termination, and the consequences of early termination.

Limitation of liability

These terms limit the damages you must pay your customer if your goods or services fail.

Protecting your business

This area is usually covered in several separate provisions. Some such provisions might include force majeure (circumstances beyond yours and the customer’s control), confidentiality, non-disclosure of information or restriction of the extent of any claim.

Intellectual property rights protection

Your intellectual property may be very valuable. The use and ownership of intellectual property are particularly important in the context of an Internet business.

The role of privacy policies

Privacy policies that outline how businesses collect, store, and use customer data are a crucial part of T&Cs. Businesses must comply with UK data protection laws, including the General Data Protection Regulation (GDPR) as present in UK law.

Compliance with UK consumer protection laws

Businesses must adhere to UK consumer protection laws, including the Consumer Rights Act, which outlines consumers’ rights when purchasing goods or services. Terms and conditions should be written in clear and concise language, and businesses should ensure that customers fully understand what they agree to when purchasing.

Crafting your terms and conditions

Creating your terms and conditions can be done in several ways. Instructing a lawyer to draft them is often recommended, as using templates and examples can result in key business activities not being protected by agreement to the terms and conditions. Regardless of the method used, businesses should ensure that their terms and conditions are tailored to their specific industry and customer base and written in clear and concise language.

Updating your terms and conditions

Once your terms and conditions are in place, it is essential to regularly review and update them to ensure that they remain relevant and effective. Businesses should review their terms and conditions at least once a year or whenever there are changes to laws or regulations that may impact them. It is also important to notify customers of any changes to the terms and conditions, including providing them with a copy of the updated document.

Legally binding nature of terms and conditions

T&Cs are legally binding and form part of the contract between you and your customer. They should be visible on your website and part of your onboarding process when you take on a new client to ensure they’re enforceable. It’s best practice to direct all new customers to your T&Cs and have them sign the document to say they have read them or create an online click agreement.

Where to place your terms and conditions

Position your T&Cs prominently on your website and ensure they’re easily accessible through hyperlinks. If you require a sign-up form from new customers, acceptance of your website terms should be mandatory, and definitive acceptance of them is sought, for example, “click this button to accept our Terms and Conditions.”

Changing your business’s terms and conditions

Most T&Cs include a provision that allows the business to change the Terms and Conditions at any time. If you have regular clients or customers, it’s best to inform them in writing that your standard T&Cs have changed and what this means for them. To avoid any misunderstandings that may lead to disputes, have the client or customer sign the new T&Cs to acknowledge receipt.

Conclusion

Having effective terms and conditions in place is essential for any UK business. They provide a clear understanding of the terms of sale or service, protect the business and customers, and ensure compliance with UK laws and regulations. By following the key considerations outlined in this guide, businesses can create terms and conditions tailored to their specific needs and customer base that provide a positive customer experience. Consider seeking legal advice if you need help drafting or updating your terms and conditions. By ensuring that your terms and conditions are effective and up to date, you can protect your business and provide your customers with a positive experience.

Speak to our head of corporate, Victoria Holland, today to discuss updating your terms and conditions today

Note: This article is not legal advice; it provides information of general interest about current legal issues.

High temperatures in the workplace

Posted on August 21, 2024 - 10:21 am by
High temperatures in the workplace. Picture showing kitchen staff.

As summer 2024 unfolds, the UK has seen a mix of weather extremes, from torrential rains to scorching heatwaves. With increasingly hotter summers becoming the norm, managing high temperatures in the workplace is now a critical issue for employers.

While short-term solutions may help mitigate the immediate risks of a heatwave, businesses must consider the broader implications of climate change and develop long-term strategies to maintain safe and comfortable working environments.

Although the UK has no specific maximum working temperature law, employers are legally required to provide a safe and healthy working environment under the Health and Safety at Work etc. Act 1974. This obligation extends to protecting employees from excessive heat, whether they are working on-site or from home.

The Workplace (Health, Safety, and Welfare) Regulations 1992 further mandate that employers ensure reasonable temperatures in all indoor workplaces. What constitutes a “reasonable” temperature varies, though, depending on the work activity and environmental conditions.

Employers must assess risks related to workplace temperature, treating heat as a hazard with the same legal obligations as any other. Special consideration is required for vulnerable groups, such as pregnant workers, new mothers, and employees with health conditions or disabilities that could be exacerbated by extreme heat. If a risk cannot be mitigated, employers must allow affected employees to leave the workplace with full pay until it is safe to return.

The complexities of workplace temperature management

Karen Cole, Head of Employment at RIAA Barker Gillette UK, explains, “The real challenge for employers is the lack of a universal standard for what constitutes ‘too hot’ in the workplace. Risk assessments must be tailored to the specific circumstances of each business. Factors such as the nature of the work, physical demands, and individual employee characteristics all play a role.”

In workplaces that naturally generate heat, like bakeries or foundries, higher temperatures may be acceptable with proper protections in place. Those same temperatures could, however, be hazardous in office or retail settings. The Health and Safety Executive has consistently urged employers to protect workers during extreme heat, and there have been calls from MPs for legislation to enforce a maximum workplace temperature.

Proactive strategies for employers

Employers are encouraged to take a proactive approach to managing workplace temperatures. “The sensible approach is to identify and address heat-related risks before the temperatures rise,” says Karen Cole. “Employers should listen to their employees and work collaboratively to develop long-term strategies for a safe and healthy work environment. Regularly updating policies and ensuring that everyone understands their rights during hot weather is crucial.”

Effective measures to beat the heat

To help manage high temperatures, employers can implement several control measures, including:

  • Installing adequate ventilation or air conditioning systems
  • Providing access to cool drinking water
  • Ensuring workstations are away from direct sunlight or heat-generating machinery
  • Offering more frequent breaks
  • Creating cooler rest areas
  • Adjusting work schedules to cooler times of the day
  • Relaxing dress codes during heatwaves
  • Providing cooling equipment, such as fans or cooling vests, where appropriate

Conclusion

As temperatures continue to rise, the challenges for employers will only increase. By taking a proactive, informed approach, businesses can ensure the safety and wellbeing of their employees while staying compliant with legal obligations.

For expert advice, tailored information, and industry-specific policies, contact Karen Cole at RIAA Barker Gillette UK today.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Compulsory purchase – what does this mean?

Posted on August 14, 2024 - 9:06 am by
photo of land acquired under a compulsory purchase order

What is a Compulsory Purchase Order?

A Compulsory Purchase Order (CPO) allows a public authority to acquire someone else’s property. This mechanism is also available to certain companies that provide public services, such as water or electricity companies.

If you receive a CPO, it means the authority intends to acquire ownership of your property, and you will have to transfer ownership to them.

Why might a Compulsory Purchase Order be created?

A CPO might be created where there is to be a major development, such as land required for a new hospital or a major housing development. It might be served by an electricity company that wishes to create a new substation or a water company that wishes to install a main sewer. Typically, new road and rail works lead to the issue of Compulsory Purchase Orders. One of the recent high-profile instances of the use of CPOs was the HS2 project.

What are the steps taken in creating and issuing a Compulsory Purchase Order?

When a public authority or utility company wishes to acquire land for a project, it goes through a series of steps.

The first step is to determine the extent of land required. They then need to identify the land owners they wish to acquire. Once this has been established, those who are affected are invited to object to the CPO. It then addresses objections either through written representations or a public enquiry. When these steps have been completed, the CPO is confirmed. The authority or company then takes steps to acquire ownership of the property that is subject to the CPO.

Can you object to a Compulsory Purchase Order?

Yes, you can. You should notify the issuing authority if you object to a CPO or make representations at any public enquiry. You will unlikely be recompensed for any expenditure you incur in objecting to the CPO.

Right to compensation

Those affected by a CPO have a right to compensation. However, the right only runs to put you in no worse financial position than before the CPO was served. You will be paid the market value of the land (and buildings), and you may receive additional compensation if other costs are incurred as a direct result of the CPO. An example of this would be removal expenses for moving house. The UK government has issued guidance in relation to making a compensation claim.

Making a compensation claim

You should consider instructing a professional to ensure you receive the correct compensation. Chartered surveyors can represent you in your compensation claim and agree on the amount of compensation you should receive. The UK government has published a Compulsory Purchase model compensation claim form and guidance notes to assist in your compensation claim.

Summary

If you are served with a Compulsory Purchase Order, it is essential you obtain professional advice. Dealing with a CPO can be challenging. A solicitor or surveyor will guide you through the process should you wish to object. They will also ensure your compensatory payment does not leave you out of pocket.

Contact compulsory purchase expert Stuart Jacobs today.

More from Stuart Jacobs on this topic: The Euston Estate: Compulsory Purchase Proceedings

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Legal jargon in wills: understanding your will

Posted on July 18, 2024 - 11:06 am by
legal jargon written in scrabble like pieces

Legal jargon or terminology is used in wills to ensure precision and avoid ambiguity. These terms serve as shorthand to prevent lengthy explanations and to maintain clarity for those interpreting the document.

Key terms in wills

People

Beneficiaries: Beneficiaries are the individuals or organisations that will inherit portions of your estate after your death.

Executor: The executor is the person or organisation you appoint to manage your estate’s administration. Their duties include identifying assets and debts, applying for Probate, handling Inheritance Tax issues, and distributing the estate per the will’s instructions. Multiple executors can be appointed to act jointly or as substitutes.

Guardians: If you have minor children, you can appoint guardians to manage their affairs.

Issue: “Issue” refers to your descendants, including children, grandchildren, and great-grandchildren, named or entitled to inherit in the will.

Testator: The testator is the individual making the will. If you’re drafting a will, you are the testator.

Trustee: A trustee manages any trusts established within the will. There can be one or multiple trustees.

Money and property

Estate: The estate encompasses all the testator’s assets minus debts or liabilities, sometimes referred to as the net estate.

Assets: Assets are valuable items the testator owns, including property, cash, and investments.

Chattels: Chattels are movable personal property, such as personal belongings, furniture, or a car.

Bequest: A bequest is a gift of personal property specified in the will, for example, such as jewellery, a car, antique furniture, or art.

Legacy: A legacy, like a bequest, is a gift but can include all types of property, personal items, and cash.

Residue: The residue is what’s left of the estate after debts, bequests, and legacies are settled.

Life Interest: A life interest allows someone to use an asset during their lifetime without transferring ownership, often used in relation to property.

Conclusion

Understanding legal jargon in wills is crucial for clarity. If any term or phrase in your will is unclear, consult your solicitor for an explanation.

If you need a new will or have questions about your existing one, contact private client solicitor and wills specialist Herman Cheung today.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Electronic signatures and digital contracts

Posted on July 4, 2024 - 3:39 pm by
graphic of an electronic signature on a laptop

Do you even need to sign a contract?

A contract does not need to take any particular form, and case law confirms that electronic documents are generally capable of satisfying a statutory requirement for contracts to be in writing.

Parties can make most contracts informally, and the law does not require a contract to be signed (either electronically or otherwise) for it to be valid. A signature merely indicates the signer’s intention to authenticate the document. So, most contracts may be validly concluded with an electronic signature.

Electronic signatures

An electronic signature or e-signature is data in electronic form which the signatory uses to sign a document, including:

  • typing a name or initials at the bottom of an email;
  • clicking “I accept” on a website;
  • using a stylus or finger to sign an electronic document via a touchscreen; or
  • digital signatures.

Digital signatures

A digital signature is a technologically advanced and secure type of electronic signature.

There are two categories of digital signatures:

  1. Advanced electronic signature (AdES)
  2. Qualified electronic signature (QES)

A QES provides the highest level of admissibility in UK and EU courts and has the equivalent legal effect of a handwritten signature.

QES requires identity authentication before a digital certificate is issued. It offers the highest level of trust through face-to-face ID verification. DocuSign offers multiple QES with ID verification options.

E-signing platforms, such as DocuSign, typically utilise AdES, which creates an audit trail as part of the digital signing process. This trail records:

  • who signed the document;
  • their email and IP address;
  • any additional steps taken to authenticate the signatory, such as a passcode sent to the signatory’s mobile phone; and 
  • a time stamp.

Does an electronic signature satisfy a statutory requirement for a contract to be made in writing or signed?

The Law Commission’s 2019 report: Electronic Execution of Documents, states that an electronic signature is capable in law of being used validly to execute a document (including a deed) subject to two important caveats:

  1. the person signing the document must have intended to authenticate it (that is, they plan to sign and be bound by it); and
  2. any formalities relating to the execution of that document must be satisfied.

If you sign a contract or deed with an electronic signature, but there is a contractual or statutory requirement for you to handwrite it (like in the case of wills), you will not execute the document validly.

The value of the contract or transaction and any jurisdictional considerations will help determine what lengths you should go to ensure the authenticity of a digital contract.

You should consider how trustworthy, secure and reliable the technology used to create the signature is. For example, a typed name at the end of a document is much easier to forge than a digital signature created by Adobe Sign.

If an opponent alleges that a digital contract is not authentic, they must prove their claim on the balance of probabilities. If the parties have used an e-signing platform, they will have a digital audit trail that would be substantial evidence of authenticity.

For digital contracts, the best practice is to use an e-signing platform wherever possible. It is also advisable to have a suitably drafted e-signing policy for your business so that all staff entering contracts do so correctly and in a way that reduces the scope for legal challenges in the future.

If you would like us to review your existing digital contracts or would like to implement an e-signing policy, get in touch with Patrick Simpson today.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Family mediation and child arrangements

Posted on July 1, 2024 - 7:09 am by
family mediation

If recently separated parents do not have a clear or agreed-upon plan for when the children spend time with each parent, this can cause stress and conflict. In the UK, the law provides several avenues to resolve such disputes. Whilst court proceedings are one option, they are not the only option. Mediation is often the preferred method of parents to reach an agreement as it is quicker, cheaper, and less stressful.

In this article, family solicitor Pippa Marshall explores the role of mediation in resolving disputes about child arrangements and offers guidance on what to do when there is no plan or agreement in place.

What is mediation?

Mediation is a voluntary process in which a neutral third party, known as a mediator, helps the disputing parties reach an agreement. Couples can use mediation to resolve a wide range of issues, including who the children live with after separation and when the children spend time with each parent. The mediator does not make decisions for you but facilitates communication and negotiation between you and your former partner to help you reach a mutually acceptable solution.

What are the benefits of mediation?

Mediation offers several advantages over litigation. It is generally quicker, less stressful, and less expensive than going to court. It also allows you to maintain control over the decision-making process, essential when dealing with sensitive issues around child arrangements. Mediation also encourages cooperation and communication, which can help improve the long-term relationship between you and your former partner, ultimately benefiting the children.

What will happen at mediation?

The mediation process typically begins with an initial meeting, known as a Mediation Information and Assessment Meeting (MIAM). During this meeting, the mediator will explain the process, assess whether mediation suits your situation, and answer any questions you may have. Suppose you both agree to proceed with mediation. In that case, the mediator will arrange a series of sessions where you and the other parent can discuss your issues. These sessions are confidential, and the mediator will ensure you both have an equal opportunity to express your views and concerns. During the mediation sessions, the mediator will help you and the other parent to explore different options and negotiate an agreement. If you reach an agreement, the mediator will draft a Memorandum of Understanding, which outlines the terms of the agreement. This document is not legally binding but can be converted into a legally binding court order if necessary.

Below are some steps you should take:

Contact a Mediator

The first step is to contact a mediator. We can help you find one, or you can find one through the Family Mediation Council or the National Family Mediation. Doing this as early as possible is helpful so you can start the process immediately.

Attend a MIAM

Both parents are usually required to attend a MIAM before starting mediation. This meeting will help you understand what mediation involves and whether it’s the right approach for your situation.

Prepare for mediation

Before the mediation sessions, consider what you want to achieve and any potential compromises you might be willing to make. It can also be helpful to seek legal advice to understand your rights and responsibilities.

Participate in mediation

During the mediation sessions, try to stay open-minded, listen to the other parent’s perspective, and focus on the children’s best interests. Remember, the goal is not to ‘win’ but to reach a solution that works for everyone and is in the children’s best interests.

Implement the agreement

If you reach an agreement, ensure you understand its terms and how you and your former partner can implement them. If necessary, you can ask a solicitor to draft a court order to make the agreement legally binding.

Conclusion

While disputes about child arrangements can be challenging, mediation offers a constructive and cooperative way to resolve these issues. By focusing on the children’s best interests and working towards a mutually acceptable solution, parents can ensure that the festive season is a time of joy and celebration for everyone.

Contact Pippa Marshall today.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Is your business acquisition ready?

Posted on June 19, 2024 - 3:11 pm by
plan for a 2024 business acquisition image of notepad planner

Acquisitions can be a pivotal strategy for driving business growth. They can enhance outreach and value by expanding the depth and scale of your operations and team. However, if not managed properly, acquisitions can lead to disruptions, unsettle employees, and ultimately decrease the overall value of the business.

Evangelos Kyveris shares five key considerations to evaluate before pursuing a business acquisition.

  1. Align with your business growth strategy

    Ensure your business plan outlines a clear growth strategy with specific objectives and timelines. While an acquisition may initially appear attractive, its success depends on aligning with your original objectives and timelines. It should be an integral part of your broader growth strategy.
  2. Evaluate your financial readiness

    Assess if your business can support an acquisition financially without future disruption. You must have adequate funding to cover the capital investment and ongoing costs of the acquisition. If not, the financial strain could destabilise your business, making it wiser to avoid the risk.
  3. Prepare your logistics

    Equip your business with the necessary systems and processes for a smooth acquisition. This includes readiness across HR, IT, and accounting to ensure seamless integration of the new business, its employees, clients, and other assets.
  4. Choose the right target

    Allow ample time to engage with potential acquisition targets. The target should align with your business needs and objectives, such as generating value. Conduct thorough due diligence as preparation is crucial for a successful acquisition.
  5. Seek professional assistance

    Understand the legal, financial, and tax implications of the proposed acquisition. Professional advice is often essential to navigate these complexities.

How RIAA Barker Gillette can assist with your business acquisition

Navigating the legal intricacies of a successful acquisition can be challenging. The experienced corporate and commercial team at RIAA Barker Gillette offers pragmatic and insightful legal advice to help structure, negotiate, and complete your acquisition. Additionally, they can connect you with other trusted professional advisers such as accountants and tax advisors.

Contact Evangelos Kyveris for more information on business acquisitions today.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

How should an employer respond to a ‘heat of the moment’ resignation?

Posted on May 3, 2024 - 1:21 pm by
heat of the moment resignation. a person leaving with their belongings

In the usual course of business, an employee who has properly given notice of termination has no right to withdraw it unilaterally. But why should a ‘heat of the moment’ resignation be different?

A case before the Employment Appeal Tribunal (EAT) has provided some useful guidance on the matter.

In February 2020, Mr Omar resigned from his employment ‘in the heat of the moment’ during an altercation with his line manager. On the same day, in a later meeting, he asserted that his employer’s CEO recognised that he wished to continue in employment and asked him to consider the offer of an alternative role. At a meeting a few days later, the CEO told Mr Omar that his line manager had decided she did not want to work with him, so his resignation would stand. His employer asked him to confirm his resignation in writing, which he said he would do. Rather than confirming his resignation, Mr Omar sought to retract it. In earlier disputes, Mr Omar verbally resigned from Epping Forest District Citizens Advice (EFDCA) twice. EFDCA refused to accept the retraction and treated his employment as terminating on one month’s notice. Mr Omar subsequently brought claims for unfair dismissal and wrongful dismissal.

His case was that he had not resigned, and there was a ‘special circumstance exception’ preventing EFDCA from relying on his verbal resignation, which he made in the heat of the moment. In Mr Omar’s case, because his resignation was ineffective, he had, therefore, been dismissed. 

Whilst the Employment Tribunal found that Mr Omar had resigned, the EAT disagreed and remitted the case to a new re-hearing, commenting that it was a ‘finely balanced case’. In doing so, the EAT gave the following guidance:

  • A ‘special circumstances’ exception does not really exist. What is crucial is whether the resignation was properly given and really intended in the first place, and this will apply to all resignations,
  • Where a reasonable employer stands in the shoes of the employer, would that employer feel that the resignation was ‘seriously meant’, ‘really intended’ or ‘conscious and rational’?
  • Where notice of dismissal or resignation is properly given, it can only be retracted with the other party’s agreement.

This recent case adds nothing new to the law on resignations and dismissals made in the heat of the moment. Still, it does provide some helpful analysis. Tribunals will likely use it as a reference tool in future cases. The crux will focus on whether the employee ‘really intended’ to resign, viewed from the perspective of a reasonable employer at the time the employee actually spoke the words. The purpose is not for the law to allow for a change of mind. It will only be in cases where the employee did not intend to resign that the resignation will not be effective.

When an employee gives notice calmly and arguably ordinarily, it will usually be safe for employers to treat it ordinarily. When an employee utters their words in a heated situation or following a conflict, we advise employers to reflect carefully and take the time to assess whether it is reasonable to rely on the resignation. All those involved must make detailed notes of what was said at the time and by whom.

The EAT has cited several examples of cases where dismissals or resignations were effective despite the giver of the notice being angry, stressed, depressed, or mistaken about the other parties’ wishes. This emphasises that each case really does depend on its facts and the circumstances known to the parties at the time. 

This case should serve as a salient reminder to employers to treat any workplace dispute with care and seek out timely legal advice at an early stage.

For advice on employment law issues arising in business contact Karen Cole today.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Understanding financial provisions on divorce

Posted on May 3, 2024 - 10:40 am by
a woman considering her financial provisions in divorce

Section 25 of the Matrimonial Causes Act 1973 is vital in determining financial provisions following a divorce in the UK. The objective of the court is to achieve an outcome which is as fair as possible in all the circumstances, and in this guide, we will walk you through the key points of Section 25 to help you understand how.

What is Section 25?

Section 25 is a critical piece of divorce legislation that provides guidelines for courts to consider when determining financial settlements.

The court aims to achieve fairness based on the following factors.

  • Needs, obligations and responsibilities
  • Income, earning capacity and financial needs
  • Standard of living before the family breakdown
  • Age, health and contributions
  • Children
  • Duration of marriage
  • Conduct

The court has broad discretionary powers, so while Section 25 provides guidelines for courts to consider when making a financial provision, there is no standard or statutory formula for calculating the appropriate financial division. The court must consider all the circumstances of the case, including the welfare of any minor children.

When a marriage ends, complex financial matters often arise, including the division of capital and pension assets and spousal and child maintenance. Section 25 provides a structured approach to addressing these issues.

The Key Factors Considered Under Section 25

Needs, obligations and responsibilities

In many cases, sufficient resources may not be available as one household is effectively split into two, meaning one party may be awarded a greater share of the family wealth because they have a greater need, such as being a primary carer for young children or a lower earning capacity.

If there is a surplus of assets after both parties’ needs have been met, the court will consider how they are shared.

Income and earning capacity

One of the primary factors considered under Section 25 is income and earning capacity. The court will examine each party’s financial resources, including current income, potential earnings, and any other financial assets.

To ensure a fair outcome, full and frank financial disclosure of assets during divorce proceedings is essential. Disclosure will involve providing documents such as bank statements, pay slips, tax returns, pensions, and details of any investments or properties owned.

The court will also consider the future earning capacity of each spouse. For example, suppose one partner has sacrificed their career or education to support the family. In that case, the court may consider this when determining spousal maintenance.

Standard of living

Maintaining the standard of living enjoyed during the marriage is an essential consideration for the court.

The court will assess the living arrangements during the marriage, including the family home, possessions and overall quality of life. It strives to ensure that neither spouse experiences a significant decrease in living standards after the divorce.

Age, health and contributions

Age and health play a vital role in determining financial provision as they can impact one’s ability to work and support themselves.

The contributions made by each spouse during the marriage are also significant factors. These contributions can be financial, such as earning an income or contributing to savings and investments, or non-financial, such as taking care of the household and children.

The court recognises the value of financial and non-financial contributions. It aims to ensure that each spouse receives a fair share of the marital assets based on their contributions.

Children

Under Section 25, children’s welfare is a priority. This does not mean welfare is paramount to any other considerations, but the court will want to ensure that any children’s housing needs are met in the first instance.

Duration of marriage

The courts will consider the marriage’s length when determining financial provisions. Longer marriages may lead to more substantial financial settlements to ensure fairness and address any financial imbalance.

For marriages of shorter duration, the financial settlement may be different as the parties may have fewer shared assets or economic ties. In such cases, the court will still strive to achieve fairness and meet the needs of both parties and any children involved.

Conduct

While the UK follows a no-fault divorce system, Section 25 does permit the court to consider conduct, such as financial irresponsibility or concealment of assets, if it affects the financial situation. However, courts are only willing to consider conduct if it would be inequitable to disregard it.

Litigation misconduct in financial proceedings refers to behaviour that departs from the expected standards of conduct within the proceedings. It encompasses actions such as providing false information, non-compliance with court orders, intentionally prolonging litigation, and generally attempting to mislead the court.

Such misconduct can result in the court making adverse inferences against a party and making cost orders against them. Parties involved in financial proceedings must comply with the litigation rules to avoid such consequences.

Ensuring a fair and empowering financial settlement

Divorce is a significant life event, and having an experienced legal representative, such as a solicitor, is crucial.

At RIAA Barker Gillette UK, we have the expertise and dedication to help you navigate the complexities of financial provisions under Section 25.

Our team will advocate on your behalf during negotiations or court proceedings, striving to achieve your best possible financial outcome. We understand that the decisions made during divorce can have long-term consequences, and we are committed to helping you build a strong foundation for your future. Whether securing a fair division of assets, ensuring appropriate spousal maintenance, or establishing child maintenance arrangements, we are committed to achieving the best results. We focus on securing a fair and empowering financial settlement, allowing you to start a new chapter with confidence and economic stability.

Negotiation and Mediation

Negotiation and mediation are helpful methods for parties to reach an agreement outside of court regarding financial provisions in divorce. These alternative dispute resolution methods can help parties save time, money, and emotional stress and ensure, where possible, that the parties can resolve matters amicably.

During negotiations, both parties and their respective legal representatives discuss and propose solutions for financial matters. The goal is to find common ground and reach a mutually agreeable settlement.

Mediation involves a neutral third party, the mediator, who facilitates discussions between the spouses. The mediator does not make decisions but helps guide the conversation toward finding resolutions that work for both parties.

Call 020 7299 6947 and speak to Pippa Marshall today.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Agile AI Regulation: Moving with the times

Posted on April 11, 2024 - 11:08 am by
AI Regulation image of coder

On 6 February 2024, the government published a response to the AI White Paper published in March 2023, which we covered in our earlier articles, Artificial intelligence will be challenged and the UK approach to AI regulation. The response followed a 12-week public consultation in which individuals and organisations were engaged through written consultation, roundtables, workshops, and insight from the regulators.

The consultation asked 33 questions to garner the respondents’ views on issues relating to the AI White Paper and the realm of AI generally. The questions covered issues such as transparency, legal responsibility, how broad or narrow guidelines or laws should be, who should regulate, support tools that should be available, and the overall approach that should be taken.

A united front

There were few answers in which the respondents expressed a wholly united stance, with various views and ideas for each question. Here are some of the areas in which there appeared to be the most agreement among the respondents:

  • Cross-sectorial principles: There was strong support for revised cross-sectorial principles that will cover broader risks posed by AI technologies and add some specific standards to the currently drafted principles.
  • Legal framework: Respondents widely felt that the current legal framework to remedy AI-related harms is inadequate within the UK and across borders. They also felt that organisations need a legally responsible person for AI, similar to a Data Protection Officer for GDPR oversight in companies.
  • Transparency: The responses made it clear that transparency regarding when organisations are using AI is important for building public trust, creating accountability, and making it easier to seek redress.  
  • Resources: There was a wide acknowledgement that regulators would require increased resources to monitor and enforce legislation effectively. 
  • Delivery: Many respondents believed the proposed framework would benefit from central delivery, and most respondents felt the government was best placed to deliver and provide oversight of the central functions. However, regulators are the best placed to implement the principles themselves in their own sectors. Further, the current framework in the White Paper needs further clarification on liability across the AI life cycle. 

Overall, the responses acknowledge that legislation may ultimately be necessary. Still, the preferred option is an agile and more flexible approach to AI regulation at this time.

What’s next?

Since the publication of the White Paper, several regulators, such as the CMA and the ICO, have published their reviews and guidance on AI systems in their sectors. More regulators, such as the Office of Gas and Electricity Markets and Civil Aviation Authority, are working on their strategies to be published. The government has asked several regulators to publish an update outlining their strategic approach to AI by 30 April 2024.

The government has established a team to deal specifically with cross-sectoral risk monitoring. It plans further targeted consultations and intends to publish an “Introduction to AI assurance” in spring 2024. The government plans to establish a steering committee with government representatives and key regulators. It has said it is investing in regulators to enable them to work together and improve practical tools to address AI risks and opportunities. The government will also review the current regulatory powers to identify any gaps.

There is much more work to do, so watch this space.

Contact Holly Anderson today for more information on AI regulation.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

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