What Am I Entitled To In a Divorce UK?

If I divorce my husband, what am I entitled to in a divorce settlement?

Neither party in a divorce has any specific entitlements to money or assets. The court treats each case on the unique situation of the couple. However, a wife could be entitled to a share of any marital assets, such as savings, property, or pensions.

Non-matrimonial assets are treated differently and are not usually subject to division. These assets can include inheritance, businesses and assets owned before the marriage.

Finally, liabilities such as debts, loans and credit cards need to be factored into a divorce settlement. These outstanding liabilities can affect the size of the overall ‘pot’, thus reducing the overall settlement.

In this article, we explore the principles the court assesses when deciding on your financial settlement, such as the length of marriage, the needs of both parties and the future earning potential.

How are money and financial assets split in a divorce?

Before looking at how money & assets may be split in a divorce settlement, you need to know the difference between the two different types of assets:

Matrimonial assets

Assets that you have built up or acquired during the period of marriage are known as matrimonial assets or marital assets.

These typically include property, pensions, savings, personal belongings, and cash in the bank.

These assets will always be added to the overall ‘pot’ and will need to be split fairly. Bear in mind that fair doesn’t necessarily mean 50/50 of everything.

Non-matrimonial assets

Non-marital assets are financial assets that were acquired before entering into the marriage, for example, property, pensions, businesses, etc.

These assets are usually treated differently from matrimonial assets, however, they aren’t necessarily excluded from a divorce settlement.

For example, if an inheritance has been used during the marriage to purchase a car or house, this asset would now be classed as a marital asset.

Here is a more in-depth article on the law when it comes to matrimonial vs non-matrimonial assets in divorce.

What does the court take into account when making a decision?

As previously mentioned, when it comes to divorce rights there are no hard and fast rules about how to divide assets following a divorce, however, there are two overriding principles that the court will examine when deciding on who gets what in a divorce:

1. Equal split

There is an assumption of a 50/50 split as the starting point in any divorce, which means the ‘matrimonial pot’ (all the assets built up over the course of the marriage) should be divided equally upon divorce.

This is in line with the case of White v. White, in which the judge ruled that: “As a general guide, equality should be departed from only if, and to the extent that, there is a good reason for doing so.”

There is an assumption that because money and assets need to be split fairly everything will be divided 50/50, however, in most cases, this is not the case.

For example, it may make more sense for one party to receive a lump sum from a property sale and the other spouse retains their pension pot. These are the discussions you need to have when agreeing to a financial settlement.

2. Fairness

An equal split of the matrimonial property may not always be deemed ‘fair’ but what is considered fair will differ from case to case.

A judge in the case of White v. White described this tricky analysis of fairness: “Features which are important when assessing fairness differ in each case.

And, sometimes, different minds can reach different conclusions on what fairness requires. Then fairness, like beauty, lies in the eye of the beholder.

Whilst these two principles are important, there are various other factors a court considers when deciding on your financial agreement; these also need to be taken into account if you want to arrive at a fair division of assets.

Are matrimonial assets always split 50/50 in a divorce?

This question is the most common misconception about financial settlements and divorce.

No law says money and assets should be divided 50:50, however, it’s often the starting point for many couples.

Subject to the principles of fairness and equal split, the court will look at various factors in section 25 of the Matrimonial Causes Act 1973.

A number of factors are taken into account by the court when making a decision, including:

1. The welfare of any children under the age of 18 (this should be the primary consideration amongst these factors).
2. The income, earning capacity, property and other financial resources that each of the parties to the marriage has or is likely to have in the foreseeable future.
3. The financial needs, obligations and responsibilities that each of the parties to the marriage has or is likely to have in the foreseeable future.
4. The standard of living enjoyed by the family before the breakdown of the marriage.
5. The age of each party to the marriage and the duration of the marriage.
6. Any physical or mental disability of either of the parties to the marriage.
7. The contributions that each of the parties has made or is likely in the foreseeable future to make to the welfare of the family, including any contribution by looking after the home or caring for the family.
8. The conduct of each of the parties. If that conduct is such that it would in the opinion of the court be inequitable to disregard it.

Read More: Does The Length of Marriage Affect a Divorce Settlement?

Can I divorce my spouse and keep everything?

No, you cannot divorce your husband or wife and keep everything.

The idea of ‘keeping everything’ is not typically aligned with the legal framework of the UK, which seeks to distribute assets in a way that is fair and equitable to both parties.

Irrespective of who generated the wealth during the marriage, it needs to be divided in a fair and equitable way. The law does not discriminate against the homemaker vs the breadwinner for example. Contributions to the marriage are seen in both monetary value and in terms of looking after the home and raising children.

Do not attempt to hide assets or deceive the court to ‘keep everything’. This is illegal and can result in severe consequences, including fines and imprisonment. Transparency and honesty in disclosing financial information are crucial.

Remember that the welfare of any children involved will be a priority in any proceedings, and their needs will be at the forefront of any decisions made regarding the division of assets.

Ultimately, the goal in a divorce is to reach a settlement that is fair to both parties, and the court will strive to ensure that this is the case. It’s advisable to approach the divorce process with realistic expectations and a willingness to compromise.

Is my ex-husband or wife entitled to half my house?

We hear this question almost daily from recently separated couples, especially those undertaking a kitchen table divorce agreement.

A family home is often the most valuable asset within a marriage, followed by pensions in most cases.

So, it’s not surprising that people have a lot of questions regarding the division of their house.

How does a house get divided within a divorce settlement? Here are various ways property can be separated, including:

1. Sell & Share – This is where both parties move out of the home and split the money to buy a new property (if sufficient).
2. Buying Out – This involves one spouse buying the other out of the property and becoming a sole owner.
3. Transfer of Value – This involves one party transferring some of the value of the property to the other person. The spouse leaving the home would not own any of the property but would keep a stake in the home value. If the house gets sold they would then receive a cut.
4. Unchanged Ownership – One party will continue to live in the house, but the ownership of the property remains unchanged.

How does the court decide who gets what in a divorce settlement?

In divorce, the aim is to divide the assets fairly. Fairness does not necessarily mean an equal division, e.g. a 50/50 split.

You can negotiate a divorce settlement between you, but it’s always worth receiving legal advice to understand your rights and obligations upon divorce.

The Court is under a duty to consider all the circumstances of the case and in particular the Section 25 factors and apply these to the particular case.

Having considered the Section 25 Factors, the Court may order an unequal division of the assets but this very much depends on the particular facts of the case.

The general rule is that assets should be divided equally unless there is a good reason not to.

The first consideration must always be given to the needs of the dependent children. Practically this means accommodation must be provided for the children and the custodial parent.

This could mean one party may retain the marital home to house the children until they reach a certain age.

Generally, the Court will always look to meet the needs of each party.

If no agreement can be reached between the parties by way of a consent order then the Court may go on to consider dividing the remaining assets taking into account how they were created.

This requires dividing the assets into matrimonial and non-matrimonial.

The matrimonial property comprises those assets that have been acquired during the marriage and non-matrimonial assets are those assets that have accrued outside the marriage (i.e. assets brought into the marriage by either party at the outset, or Inheritance or gifts.)

Once the needs of each party have been met, then anything over may be divided further.

How Divorce-Online can help

The new divorce law, known as no fault divorce made no changes to financial settlements are made, so it won’t affect what you are entitled to in a divorce.

Getting professional legal advice from a family law solicitor can help you understand your rights upon divorce.

If you’re considering a divorce, this should be your first step. You can, of course, agree on the division of money and assets between you, however, this may not lead to a fair division of assets.

For more information, you can speak with our team on Live Chat, call us at 01793 384 029, or request a free callback.