Divorce: Division of Assets

When resolving financial matters, we look at what is fair. The court will also look at what is fair.

But “fair” does not mean that everything is divided on a 50/50 basis.

We have a set of comprehensive guidelines known as Sct 25 Matrimonial Causes Act 1973 and a plethora of case law, which has followed.

The Sct 25 criteria is as follows:

Income, earning capacity, property and other financial resources of the parties

The court must consider the current and the foreseeable financial resources of the parties. This includes the parties income (from all sources), savings, pension, shares and property. This must be considered in light of their liquidity. The court will also consider potential resources, such as mortgage capacity.

Financial needs of the parties

The court considers the present and foreseeable financial needs, to include housing, and income needs. The needs of any child to the marriage, “trumps all”.

Standard of living post-divorce

Unless the parties are multi-millionaires, the court cannot begin to attempt the impossible and preserve the standard of living enjoyed by the parties. More likely, the court will attempt to ensure that the reduction in the standard of living is borne proportionally between the parties.   

Ages of both parties and the length of the marriage

This, perhaps on its own is a strange consideration, but, the court need to consider this. A short marriage with a young couple, who have no children will be a different resolution, to a couple who have been married longer and have children, which again will change if the parties have been married a long time and reaching their retirement. The ability to get on and recover financially, is different in each scenario.

Disability of either of the parties

The court will consider the physical and mental health of the parties, as well as any disabilities or special needs, which may influence the financial settlement.

Financial contributions in a marriage

The court will need to balance the contributions made by each party to the marriage. This is both of financial and non-financial contributions. A parent who has perhaps sacrificed their own job and career to care for the children of the marriage, or to support the other party’s career, has made just as much contribution as the employed spouse.

Conduct during marriage

Whilst we often see conduct pleaded in financial remedy proceedings, it is a significant financial based conduct that the court will consider, if it would be “inequitable for the court to disregard it”. For example, the financial conduct has been so bad, it has affected the parties’ current financial circumstances.

Other resources that one party may lose the chance of acquiring as a result of the divorce (pensions)

The Court will consider the value of any pension benefit which one party will lose the chance of acquiring, because of the divorce. This includes income, lump sums and widow/widower benefits.

We have a team of specialist lawyers in the family department at Lawson West Solicitors who are more than happy to discuss your queries with you. Contact Us.