Financial issues can be a source of great stress during a divorce. Having the right financial order in place will allow you to face and plan for the future with certainty.
It is usually recommended to reach a financial settlement before you divorce so that you can ask the court to make a financial order at the time of the divorce.
How UK courts will divide assets on divorce
The basis for dividing assets in a long marriage is to split them 50:50 to try and be fair to both parties, although this is not a fixed rule and there are a number of considerations that the court will take into account when coming to a decision. These are listed under Section 25 of the Matrimonial Causes Act 1973.
The court will look at the duration of the marriage, the parties’ standard of living and the financial needs they have and that they may have in the future.
The ages of the parties will be considered as well as their earning capacity, which could be lower for one party if they are caring for children and which could mean that they receive maintenance payments.
When dividing assets in divorce where one party is not working but has cared for the home and children, these contributions are considered as an equal contribution with financial income. If they are likely to have a lesser career because of giving up work to care for the children they could receive more capital by way of compensation.
The court will always ensure that any order it makes recognises the need to maintain the welfare of any children who are involved. This could mean that their main carer receives the family home while the other party has another asset in return, such as a lump-sum payment or pension provision.
If the marriage was only short, then capital contributions from one party will be taken into consideration and they may receive a larger settlement.
What are matrimonial assets and how are they split?
Matrimonial assets are the financial assets built up during the period of marriage. They include the family home, savings, pensions, stocks and shares, vehicles and businesses. These are split fairly by the court, starting with the basis of equal sharing but taking into account the needs of the parties and the children of the family.
Assets acquired before the marriage are considered a non-matrimonial asset, although an inheritance received before marriage could become a matrimonial asset if it was used during the marriage to buy something, such as a home.
The court has a number of options in making financial orders, as follows:
- Lump-sum payment
- Periodical or secured periodical payments for spouse and/or child
- Transfer of property
- Variation of property ownership
- Sale of a property
- Sharing of a pension
Our divorce and family law solicitors can advise you on the likely options in your particular case and what type of order would be the most suitable for dividing assets in your divorce situation. For example, you may want the certainty of a clean break with a lump sum payment paid to one party with the other receiving the shared home.
Dividing assets in divorce where there are children of the family
The court will prioritise the needs of children in all aspects of a divorce. This means that it will try and make sure there is a settled family home for them and sufficient money to provide for their care.
The party who does not live with the children most of the time will generally pay maintenance to their main carer. The sums to be paid can be agreed upon between you and your ex or the Child Maintenance Service can calculate the amount payable, for a fee, or in some special cases the court can specify what maintenance payments should be made.
Payments will generally be made until a child leaves full-time education.
For information about child contact following divorce, see our article on child custody in divorce, explore what rights fathers have and see how to stop your ex partner from seeing their child.
Obtaining a financial agreement in divorce
As professional family law solicitors, we negotiate on behalf of our clients to try and reach an agreed financial settlement in divorce wherever possible to avoid the need for court hearings. This is generally faster and more cost-effective than litigation. Once agreement is reached, the terms can be put into a consent order which is sealed by the court, making it legally binding and enforceable.
If your case does need to go before the court, we will ensure that you have a strong case and robust representation.
Contact us
At Witan Solicitors, we understand how important it is to have financial certainty and adequate financial provision. With offices in Northampton, Birmingham and London, we work tirelessly for our clients to ensure that they receive the divorce settlement they deserve so that they can face the future knowing that they have been properly provided for.
If you would like to discuss your options regarding dividing assets in divorce with an expert family lawyer, email us at info@witansolicitors.co.uk or fill in our contact form.
