When a couple decides to divorce, sorting out the finances can quickly become one of the most complicated and stressful parts of the divorce process. Assets can be owned jointly or in one person’s name, and they may have been built up before the marriage, during it, or after the relationship ends. While the family home is often the biggest asset, that’s not always the case. One spouse might have a valuable pension, business interests, shares, or other investments that also need to be taken into account. Knowing what is in the matrimonial pot and how it could be divided is the first step towards reaching a fair financial outcome that meets both parties’ needs, with the needs of any children from the marriage always being considered first.
Are my ex-partner and I allowed to agree that they will receive less than 50% of the assets?
The short answer is yes, but it depends on the circumstances. Dividing assets during a divorce can be complex and emotional, and the law allows the court considerable discretion to decide what is fair in each case.
Whilst the starting point, particularly in long marriages is an equal division of asset between parties, there is no automatic 50/50 split. The court takes into account factors such as the length of the marriage, each spouse’s financial contributions, and the needs of any children involved.
If you and your ex-partner agree that one of you will receive, for example, 60 percent of the assets and the other 40 percent, that agreement can become legally binding. To make the agreement legally binding, a solicitor must draft a financial consent order and submit it to the court along with a Statement of Information (Form D81), which provides the court with a detailed snapshot of each party’s financial positions.
The court will only approve the order if it considers the agreement fair and reasonable given your particular circumstances. So, while you can agree on a division that is not equal, the court’s approval is necessary to make it enforceable.
How do I know whether our agreement regarding the assets is ‘fair’ and ‘reasonable’?
Section 25 of the Matrimonial Causes Act 1973 outlines the factors that the Court will apply when dealing with financial claims on divorce. It provides that when deciding how to exercise its powers, the Court shall have regard to all the circumstances of the case, with the first consideration being the welfare and needs of any dependent children under the age of 18.
Given that there is no ‘one size fits all’ approach to how assets will be treated on divorce, we suggest that you take legal advice on your individual circumstances as soon as possible. Rayden Solicitors will guide you through the divorce settlement process and advise you to help you reach the financial settlement that is right for you and your family. If you would like to discuss the circumstances of your case, please contact us.
