Divorce is often a highly stressful experience for all involved, and in circumstances where couples have been together for a long time, splitting assets is an emotional and difficult part of the process. This is why many divorcing individuals decide to get a qualified family law solicitor on board, to help manage the overall process and ensure that the asset split is fair in your own personal circumstances.
Joint assets can be split in any manner of ways, but the key is effective organisation and understanding of which assets both you and your partner are receiving as part of the divorce settlement.
Pensions, property, savings and investments are all included, plus material items like cars, furniture, jewellery, and in some cases, non-matrimonial assets like inheritance too. Child maintenance will also need to be discussed and agreed upon if relevant to your situation.
In this post, we will cover the factors that affect asset division, divorce asset law, protecting assets and more to ensure you have a clear picture of what to expect when you start (or continue through) the process.
Should you wish to discuss your divorce asset split with an experienced solicitor, you can get in touch with us today to book a free initial family law consultation.
What is the split of assets in a divorce, and what factors affect division?
Splitting assets is never a one-size-fits-all approach. Every case is handled differently, drawing on the couple’s personal circumstances in order to reach a legally binding settlement. There is a common misconception that assets are generally split 50/50, but in reality, this is not often the case.
The court will aim to help ex-couples reach a fair split – which may favour one side more than the other – but there are numerous factors that are brought into consideration. If a decision cannot be reached amicably between the parties independently or with the support of a mediator or the courts, the judge will decide for you both, considering aspects such as:
- How long you’ve been married for
- What financial resources are available to each party
- If there are any children to care for and where they will be living
- Whether future earning capacity is apparent
- What the accustomed living standards are for both parties
- What the main role has been for both parties
Based on the factors listed above, one of the most important considerations for the court is the long-term care of any children. They will always be accounted for first, based on their individual needs.
As previously mentioned, in some cases the courts may favour one side more than other when it comes to what is deemed the fairest; with 70/30 assets splits a possibility for some couples. These decisions are not taken lightly, and the court will look at various qualifying factors to determine if this is the best course of action. Some of these include:
- Does one party have a much lower income, or a considerably lower earning potential?
- Has someone’s role within the marriage been that of a primary carer to children or family?
- Has the marriage been over a long period of time, and what long-standing lifestyle factors need to be considered?
- What financial contributions have both parties made towards the marriage and joint assets?
Divorce asset law in the UK
UK law requires divorcing couples to decide how their joint assets should be split moving forward. It is then made legally binding either through a consent order (when you can reach a decision yourselves), or a financial order (where the court decides for you).
Your order should encompass all the relevant assets as previously mentioned, but it is also important to ensure that everything you own together is covered. This may also include businesses, land, employment bonuses, pre-marriage assets and gifts or loans from family members. It’s important to remember that there are no set laws for dividing assets, as each family has differing circumstances.
What assets cannot be split?
Although all assets from both sides may be analysed, there are some assets which are typically not included within a divorce settlement. These are known as non-matrimonial assets and are generally owned by an individual before the marriage, or were bought by an external source for one party.
These include:
- Inheritance
- Cars, other material items or savings accounts that were owned/accrued before the marriage
- Properties bought before the marriage (as long as they haven’t been used as the family home).
It’s important to remember that although these sorts of assets are usually not included, they may be considered in special circumstances, such as:
- If it is deemed necessary by the court to ensure that a fair settlement is reached.
- When the matrimonial assets do not meet the needs of both spouses
- When non-matrimonial assets are used during the marriage (such as a single-owned property being used as the family home)
How can I protect assets in a divorce?
Pre-nuptial agreements and post-nuptial agreements
The easiest way to work towards protecting assets is via a pre-nuptial agreement. Although not legally binding, this document is drawn up and agreed to by both partners prior to getting married, providing a clear definition of what both consider to be separate property, and therefore should not be divided in the situation of a divorce. In the event of a divorce, the court will take the details of a prenup in high regard as they depict the wishes of both parties, but it is not guaranteed that it will be fully adhered to.
Post-nuptial agreements are also a possibility when looking to protect assets and again are highly persuasive when in court, but not legally binding.
Trusts
If you have specific wishes to protect certain assets for future generations, setting up a Trust may be the best way forward. It is always recommended that competent legal advice is sought for this option as it is a complex area of law that needs to be approached and set up correctly in order to hold up in court. Again, this can be challenged depending on the circumstances, or how genuine the court believes the trust to be. Contact one of our Trust Solicitors for help on advice on which trust is best for your situation.
Gifts or loans
You may wish to protect a future gift or loan from, for example, a family member. Generally speaking, monetary gifts are classed as being made to the couple, and are therefore part of the matrimonial assets for division during divorce. However, if any money is given as a loan, and there is expectation that it is to be paid back, an agreement can be drafted to specify this, protecting that loan from division.
The importance of divorce financial settlements
The courts will always strive for a fair agreement to be reached before the divorce is finalised. Any children involved will be accounted for as a priority, to ensure that they are provided for in the long term.
If you are able to reach an amicable agreement outside of court prior to a final hearing, both parties will save money in the long run, and there may be less emotional strain on the situation as a whole.
If you cannot reach an agreement yourselves, you will need to be prepared that the court judge will decide for you. You will be unable to finalise your divorce without this element, so where possible, working with your ex-partner is the most straightforward path.
Why choose Eric Robinson Solicitors?
At Eric Robinson, our experienced team of lawyers is here to help, supporting you in achieving an outcome that works for you. We are specialists in family law, including mediation, so we are best-placed to help you reach an amicable settlement that saves you time and money in the long run.
We offer all our prospective clients a free initial consultation, so you can speak to one of our solicitors without the concern of upfront costs. If you would like to speak to us about divorce asset division or any other family law matters, contact your closest branch.
