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.
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.
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.
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.
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.
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.
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…
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.
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.
• 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.
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.
Our expert family law solicitors can help you with a range of legal issues relating to divorce, including:
For more information call our divorce solicitors on 0845 862 5001 or email firstname.lastname@example.org.
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