Divorce can raise immediate questions about your financial position, particularly if you are concerned about the family home, savings, pensions, or ongoing financial support. The starting point in dividing assets is a “50/50 split” when considering a financial settlement. However, this can be departed from and will be dependent upon the circumstances of the specific couple/family.

The court’s primary consideration is achieving a fair outcome, taking into account factors such as each spouse’s income and earning capacity, financial needs, assets, liabilities, housing requirements, the length of the marriage, and any children’s needs.

Depending on your circumstances, you may have an interest in:

• The family home and/or other property – this may involve selling the property, transferring ownership, or one party retaining it while making an appropriate financial adjustment. If values of property are disputed, then jointly appointed valuation reports will be required and the cost shared by the parties.

• Savings and investments – jointly owned and, in some circumstances, individually held assets may need to be considered.

• Pensions – pension assets can be significant and may be dealt with through a pension sharing or other appropriate order.

•   Where there is significant value and/or disparity in parties’ pensions this usually requires a pension sharing report.  Such report is conducted by a jointly agreed pension actuary, and the cost of such report is shared.

• Income or maintenance – depending on the parties’ financial circumstances, one spouse may be required to provide ongoing financial support to the other.  The court will always seek to achieve a clean financial break between the parties where possible.

• Business interests and other assets – these may also form part of the overall financial assets available for division.  Expert business valuations may be required.

Inherited and non-matrimonial assets are treated differently.  Such assets have not been derived from the parties’ joint endeavours during the marriage.  Such assets may be considered by the court if there are insufficient matrimonial assets to meet the needs of the parties and any dependent children.

Get advice before agreeing to a settlement

It is strongly advisable to obtain independent family law advice prior to agreeing a financial settlement.  A financial remedy consent order will provide certainty and, where appropriate, bring financial claims between former spouses to an end.