As expected, the starting point of dividing assets in the UK is 50/50. Be that as it may, the financial settlement varies widely from case to case. That is because the different circumstances of the parties play a key role, as do their needs in deciding who gets what from the matrimonial assets. Financial claims arise from the divorce and sometimes one party gets a bigger share than the other. 

Dividing assets during a divorce is never a straightforward process. The following guide hopefully sheds some light on it. 

Defining matrimonial assets 

These assets represent the property that both partners have built up in the time of their marriage. As a common endeavour, both parties have worked to build up a financial product, which takes up many forms and outlines the matrimonial acquest. In most cases, the greatest part of the matrimonial assets is made up of pension and the matrimonial home that the parties share. 

Resolving financial issues 

These can be difficult to solve since the matrimonial assets funding the current household will then need to fund two. Courts often order lump sum payments or some other form of payment (for example periodic payment), which also go by the name of spousal maintenance. Courts must make it so that the parties are independent of one another, as soon as the divorce ends. Such is the aim of the Matrimonial Causes Act 1973. 

What are the main points UK courts consider in regards to dividing assets? 

• The financial resources that each party has – this includes earning capacity, income and other resources, which parties possess now, or they will in the near future. 
• Financial needs – each party has certain needs, obligations and responsibilities now and in the future, all of which the court needs to take into account. 
• Standard of living – the court always needs to consider what standard of living both parties have enjoyed in the years before their marriage broke down. 
• Age of parties to the marriage – in addition to the age of the parties to the marriage, the court also needs to consider the duration of said marriage. 
• Contributions of each party – this is very important. The court considers the contributions both parties have made towards the family, as well as what contributions they can make in the foreseeable future. This also includes looking after the home and caring for other family members. 
• Benefits that parties will not acquire – in regards to the nullity of marriage and proceedings of divorce, the parties may lose a chance to acquire certain benefits, mostly pension, and the court needs to take that into account. 

Divorce and income 

Each of the divorcing parties is under the duty to maximize their income, i.e. not just rely on the other party. Sometimes though one of the parties may not be able to work, because of health issues, or because they need to care for young children. If their earning capacity is not very high, their financial situation is going to be difficult, and the court needs to consider that. 

Adjustment of property 

The property, which both parties own jointly, may be transferred to the ownership of either one. Typically, these scenarios play out: 

• One party buys the other – when one party buys the other, it may be that the money is not even due for some years. 
• The house is needed for young children to use as home – if there are young children, they will need the house for their home. The court will often preserve the property if the primary caregiver can afford the upkeep. In that case, one of the spouses may need to wait for a share. 

Knowing more about dividing assets during a divorce is important in understanding this complex process. 

© Carlsons Solicitors