If you are facing a divorce, you will undoubtedly have scores of questions about the process and likely outcomes. One question that our specialist family law solicitors are asked time and again is, ‘How are assets divided in a divorce?’, and understandably so. Separating from your spouse not only causes intense emotional upheaval but can also trigger worries about the future financial situation of you and your family.
At Johnson Astills, our expert family law solicitors specialise in supporting clients going through a divorce. With us by your side, you can be confident of securing an outcome that is fair, practical, and ensures your future financial stability.
Please call us free now on 0800 059 0600 or complete a Free Online Enquiry and a member of the team will get back to you soon.
‘I am perfectly satisfied with the way the case was handled. My solicitor was very efficient, easy to communicate with and was very clear on what the outcome would or could be and who worked well.’
What Gets Divided In A Divorce?
When considering a divorce settlement, the court looks at the entirety of the couple’s assets, including the following:
- The marital home and other property.
- Savings and investments, including current and savings accounts, ISAs, Premium Bonds, shares and other investments.
- Pensions, including workplace and personal pensions and, in some cases, additional state pension rights.
- Business interests, such as shares in a limited company, partnership interests, or a family business.
- Other valuables, like cars, jewellery, art, and other high value items acquired during the relationship.
The couple’s debts, such as mortgages, loans, and credit cards, also form part of the overall picture, because they affect what is available to be shared between them.
How Are Assets Split In A Divorce?
Contrary to what many believe, there is no fixed 50/50 rule when it comes to how assets are divided in a divorce. While some settlements may result in assets being split down the middle, the court’s primary aim is fairness.
When deciding what a ‘fair’ settlement would be in any given case, the court will consider several factors, including the following:
- Each person’s income, earning capacity, property, and other financial resources.
- Each person’s financial needs, obligations, and responsibilities.
- The standard of living enjoyed by the couple during the marriage.
- The couple’s ages.
- The welfare of any children, which is always the primary concern.
In many cases, there is not enough money to do much more than meet each party’s basic needs. Where resources are more extensive, dividing the assets can be complex and may require input from specialists, such as forensic accountants.
How Are Assets Divided In Practice?
Before any discussions surrounding the division of a couple’s assets can begin, the parties must give full and frank disclosure of their financial circumstances. This involves providing details of all assets, income, and debts, supported by documentation, such as bank statements and pension statements. Collating details of the couple’s assets may necessitate obtaining valuations of key assets, such as properties, pension pots, and businesses. Only once this information is collated can any meaningful discussions take place.
Many couples are able to reach an agreement regarding how their assets should be divided without needing to involve the court. This is far preferable to lengthy, costly litigation. Reaching a settlement, either through discussions or alternative dispute resolution methods, such as mediation, is far less stressful and far more cost-effective than court proceedings.
During settlement negotiations, the parties can explore a range of solutions before agreeing on one that suits everyone involved. For example, the couple may agree that one person keeps the family home and takes a lesser share of the pension pot, or they may agree to sell the home and both buy smaller properties.
Even if the couple agrees on everything between themselves, it is crucial to turn their agreement into a court approved consent order so that all claims are properly closed off. Without this, either of them can potentially make further financial claims in the future.
If reaching an agreement is not possible, the court can decide on the terms of the divorce settlement after a series of hearings, although most cases still settle along the way.
How Can Johnson Astills Help You Achieve A Fair Financial Settlement?
From your first appointment with us, Johnson Astills’ divorce solicitors will focus on what you want life to look like after the divorce, not just on dividing what you have today.
We will help you to build a complete, accurate picture of the marital finances, including pensions and any business interests. We will explain the range of realistic outcomes in your situation based on that information, and devise a strategy that prioritises what matters most to you. We will support you through the process and be on hand to provide the advice and guidance you need.
Please call us free now on 0800 059 0600 or complete a Free Online Enquiry and a member of the team will get back to you soon.
‘I cannot fault my experience with Johnson Astills Solicitors. Throughout this difficult time I was made to feel secure, supported and validated – money can’t actually buy these things.’
