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Divorce Asset Split: How does it work?


Understanding how a divorce asset split may work can help to open up discussions and hopefully, put a divorcing couple on the path towards a financial settlement that works for them both.

For many couples considering a divorce asset split, reaching a financial sttlement can be one of the most challenging parts of the divorce process. Deciding how everything from pensions to the family home will be divided, in a way that is fair to both parties, can put considerable pressure on both spouses, at an already difficult time.

 

Divorce asset split: it comes down to your individual circumstances

How a divorce asset split will look can vary between divorcing couples. There is no one-size-fits-all answer to how a divorce asset split will end up.

A divorce asset split can vary depending on a couple’s circumstances. For example, whether or not a couple have children can make a difference to how the divorce asset split will work. This is because the welfare of any children involved is always paramount.

There are no set rules as to what should happen, for example, to the family home when a couple divorce.

As a result, it is highly advisable that a couple going through a divorce, seek legal advice suited to their circumstances from a specialist solicitor, such as Austin Kemp.

 

divorce asset split

Divorce asset split: what factors does the court take into account?

If the court is asked to divide a couple’s finances upon divorce, it will take into account various factors.

These are known as ‘Section 25 factors’, as they come from Section 25 of the Matrimonial Causes Act 1973.

These factors include:

• the income and earning capacity that each spouse has

• the standard of living of the family before the marriage broke down

• the length of the marriage

• the age of the spouses

It is important to note here, that before the court considers these factors when deciding a divorce asset split, it will look at the welfare of any children involved.

 

Divorce asset split: the sharing principle

When making a decision on a divorce asset split, the court also considers the sharing principle, which in practical terms means that the starting point of a divorce asset split is 50:50. However, this is only the starting point and the court may come to the conclusion that this may not be appropriate in a couple’s circumstances and, as such, may depart from it. This could happen if, for example, the marriage was short or if there were no children involved.

 

Divorce asset split: the compensation principle

When deciding a divorce asset split, the court may decide that compensation may be paid for “relationship-generated disadvantage”, such as where one party has given up work to look after the children.

 

Divorce asset split: seek advice from a solicitor

While there are various factors that the court will take into account when making its decision on a divorce asset split, there are no hard and fast rules. However, understanding how a court may decide a divorce asset split, can help to create a starting point for negotiations. We would always recommend anyone going through a divorce seek independent legal advice from a solicitor, such as Austin Kemp, to ensure that any financial settlement is fair and takes into account the needs of both parties.

 

Are assets split 50/50 in divorce?

There’s a common belief that if two people are getting a divorce, their assets will automatically be split equally between them. Are assets split 50/50 in divorce in England and Wales? Or is this another divorce-related myth? We take a closer look…

 

Are assets split 50/50 in divorce?

There is a common misconception that assets are always split 50/50 in divorce. In reality, although the 50/50 division is a starting point, it is not the case that everyone’s assets are split 50/50 in divorce.

The aim of divorce financial settlement negotiations is to reach a financial settlement which is fair to both parties.

A simple 50/50 division of a couple’s assets, may not represent a fair financial settlement.

To find out when assets are split 50/50 in divorce and when this starting point may be deviated from, it can be helpful to look at how a court works out what a fair financial settlement would be for a divorcing couple.

 

How does the court decide when to deviate from the 50/50 split?

There are a number of factors the court will take into account when working out whether or not it is fair and reasonable to deviate from the ‘assets are split 50/50 in divorce’ starting point.

These include:

• the age of each party
• the duration of the marriage
• the needs of both parties
• whether there are any children involved (and their needs and welfare)
• the income and earning capacity of both parties
• the standard of living the family enjoyed before the marriage broke down
For example, on a very simplistic level, a simple 50/50 split may not be appropriate when one party has given up their career to look after the children and the other party is earning a six-figure sum.

 

Every marriage is different, assets are split 50/50 in divorce is only a starting point

Unfortunately, there is no one-size-fits-all formula to work out a fair divorce financial settlement.

Every marriage has its own unique finances and circumstances and, as such, saying that assets are always split 50/50 in divorce would not result in a fair outcome for every divorcing couple.

This is why the 50/50 split is only a starting point, rather than a hard and fast rule.

As a result, we would highly recommend that anyone going through a divorce should seek independent legal advice from a specialist solicitor, such as Austin Kemp, before beginning negotiations with their spouse.

This way, you can begin negotiations with an idea of what a fair financial settlement may look like in your circumstances, potentially saving a great deal of time and money in the long run.

 

Other articles that may be of interest to you?

How long does a divorce take?

What is the divorce process?

When is decree absolute granted in a divorce?

Decree Nisi – What does this mean in a divorce?

What are the first steps to divorce?

Is a cheap divorce really possible?

 

How can our expert divorce solicitors help you with your divorce

Our expert family law solicitors can help you with a range of legal issues relating to divorce, including:

 

Contact our expert divorce solicitors for advice on your divorce

For more information call our divorce solicitors on 0845 862 5001 or email mail@austinkemp.co.uk.

Our expert family law solicitors offer a nationwide service. We have client meeting office facilities available, in order to have face-to-face client meetings / conferences as and when required in:

Leeds Office: St Andrew House, The Headrow, Leeds, LS1 5JW

Wakefield Office: Market Walk, Wakefield, WF1 1QR

Halifax Office: Old Lane, Halifax, HX3 5WP

Huddersfield Office: Northumberland Street Huddersfield, HD1 1RL

Coventry Office: Warwick Road, Coventry, CV1 2DY

Canary Wharf Office: 25 Canada Square, Canary Wharf, London, E14 5LB

Please contact us for more details.

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09th April 2020

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