MY DIVORCE | MY WEALTH - PART 5: Split of Family Assets

The Split of Family Assets

The division of family assets on divorce is a myriad of principles. Starting with The Matrimonial Causes Act 1973, which sets out what the court should look at, there then flows any number of cases that have been decided by the higher court.

The starting point, for sure, is that the assets should be divided equally but then the court will look at the following 3 principles:

Needs

The financial needs of the parties take priority. So the court must determine:

(1) What are needs, and at what level should they be met?

(2) The duration of provision for needs and the transition to independence.

Case law has told us:-

Need will be measured by assessing available financial resources.

The court will strive to stretch finite resources and where resources are modest the children’s needs may predominate.

Need will be measured by assessing the standard of living during the relationship, generally the longer the relationship’s duration, the more important this factor will be.

A party may be expected to suffer some reduction in standard of living having regard to the overall objective of a transition to independence.

To measure need, and the ability to meet it, both parties will be expected to present appropriately detailed budgets to the court.

Sharing

In other matters, the parties financial needs can comfortably be met and perhaps surplus left over simply by dividing the matrimonial assets. Or perhaps there or no children to be considered, the parties have similar income and are of a similar age. Without any of the Matrimonial Causes Act factors to be considered, then it is very likely that the assets of the marriage will be divided equally between the parties.

Compensation

The final principle, and perhaps the hardest to prove is that of compensation. This addresses any significant financial differences between the parties in a divorce. “Compensation” is argued, usually, if for example, one party has sacrificed their true earning capacity to care for the family – or perhaps support the higher earner. The court can “compensate” the disadvantaged ex-spouse.  

Fiona Wilson, Head of Family law
Lawson West Solicitors, Leicester

Lawson West Solicitors has a wealth of experience and expertise in acting for clients in divorce and relationship matters. 

Please call us on 0116 212 1000, or complete our free Contact Us form and we will get in touch as soon as possible.

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