Will I lose my assets if I divorce my spouse?

Posted: 20 November 2024

There is a misconception in divorce cases that you will lose half of your assets. However, an equal share in assets is not always the case. The starting point for the court is to consider assets under the sharing principle. The court is likely to deviate from equality when considering the circumstances of the case and a range of factors will have an influence on how assets will be split. Whether settlement that is agreed or imposed it has to be fair to both parties.

People often make the assumption that their premarital assets will automatically be separated. Whilst these assets are normally set aside from ‘the pot’ there are two exceptions to this rule. Specifically, non-matrimonial assets can be shared between the parties if the matrimonial assets themselves are insufficient and will not meet the needs of the party. It is also sometimes difficult to determine exactly which assets are matrimonial assets and which are non-matrimonial. Non-matrimonial assets can therefore be brought into account if they become mingled with matrimonial assets.

How are assets divided?

The court must consider all the circumstances of the case and in particular the various factors set out by statute. Section 25 of the Matrimonial Causes Act 1973 outlines the relevant factors the court must consider when making a financial order. The first consideration for the court will be the welfare of any child of the family while they remain under the age of 18. The court will also consider other factors including the income, earning capacity, property, financial needs. As well as any contributions made by each party to the marriage including looking after the home and caring for the children.

What orders can the court make?

The court is obliged to consider whether a clean break is appropriate and if so whether the outcome would create financial hardship. The court also has the power to make a range of orders to cover income claims, property claims and claims against pensions. The orders made include a lump sum payment, sale settlement or transfer of property, pensions sharing and spousal maintenance. The court no longer have the jurisdiction to determine child support payments except in very limited circumstances.

Expert Advice

At THB we recognise that the process can be emotionally challenging. However, understanding what happens to your assets during divorce can help you to negotiate a fair and reasonable settlement.

If you feel your marriage has irretrievably broken down and you would like some advice on how to proceed with your divorce. Please get in touch on 01245 493959 or send an email to book a consultation with one of our Family Law specialists to discuss your options.