Divorce and Finances: What Am I Entitled To?

One of the most common questions people ask you as a family law solicitor is: “What am I entitled to in a divorce?” The answer to that question will depend on a range of factors, from the length of your marriage to your individual financial needs. In this article, we explain how divorce and finances work, the key things to take into account, and how a family law solicitor can help protect your interests.

In a divorce, all assets and liabilities must be considered before a financial settlement can be reached. The will often include the how the family home is divided in divorce (and any other properties), any savings, investments, how pensions are split in a divorce, and your debts and liabilities. Some financial settlements may also include business interests and international assets.

There is no fixed formula for dividing assets in England and Wales. The court’s main aim will be one of fairness. That does not necessarily mean a 50/50 split, although an equal division is often the starting point, especially in long marriages.

The law governing financial settlements in divorce comes from the Matrimonial Causes Act 1973. Courts have wide discretion and will consider several factors before making a decision:

1. The Welfare of Children
The needs and welfare of children always come first. Factors such as housing, stability, and ongoing financial support will be taken into account when dividing assets.

2. Financial Needs and Resources
The current income, earning capacity, property, and other financial resources for both you and your ex will be assessed. The settlement will also consider what each person reasonably needs to live on, including housing and everyday expenses.

3. Standard of Living During the Marriage
Your current standard of living will be considered as part of the settlement. If you have enjoyed a comfortable standard of living, the court may try to maintain something similar for both you and your ex-spouse, as far as resources allow.

4. The Duration of the Marriage
If your marriage has been short, what assets each of you brought into the relationship may be taken into account. For longer marriages, assets are more likely to be treated as shared regardless of who acquired them.

5. Contributions to the Marriage
This includes both financial and non-financial contributions. It is important to understand that both are equally recognised. Staying at home to raise children is considered as valuable as going out to work.

6. Age and Health of the Parties
Future earning capacity and health conditions may influence how assets are divided to ensure each party’s needs are met.

The family home is often the most significant asset in divorce. If you have children, there are several options as to what to do with the family home in your divorce settlement. They include selling the home and dividing the proceeds, one spouse buying out the other’s share, and delaying a sale until children reach a certain age (a Mesher order).

Your family law solicitor will be able to help you understand your rights and negotiate the best option for your circumstances.

Pensions can be one of the most valuable assets in a divorce settlement, sometimes more so than the family home. With pensions, there are two main options to consider.

The first is a pensions sharing order which will split pensions between both you and ex-spouse. The other option to consider is pension offsetting. This is when one of you keeps the pension while the other receives assets of equivalent value.

Your financial settlement will also consider any savings, shares, and investments you have. They can also be divided or offset against other assets.

You may be entitled to ongoing financial support from your ex-partner. This will take the form of spousal maintenance. This normally applies if you cannot meet your reasonable needs without support – for example, if you have been out of the workforce for many years due to raising children.

Child maintenance is dealt with separately, normally through the Child Maintenance Service (CMS), unless both parties agree otherwise.

There can be an agreement between parties, with some divorcing couples being able to agree through solicitors. You can use an Alternative Dispute Resolution method – such as mediation – to help you reach an agreement out of court.

Even if you agree, it is vital to have the settlement approved by the court in a legally binding document called a consent order. If agreement is not possible, then you will have to go through court proceedings.

Understanding your financial situation and what you are entitled to in your divorce is an important part of planning for your future. Getting professional legal advice from an experienced family law solicitor will provide the clarity you need and ensure you reach the best settlement tailored to your circumstances.

Your solicitor will be able to help you understand your options and will make sure you do not agree to less than you are legally entitled to. They can advise on likely outcomes and negotiate on your behalf. They will draft and submit consent orders on your behalf to ensure agreements are legally binding.

Ready to take the next step? As leading family law solicitors in Milton Keynes , our team of divorce specialists can advise and guide you from the moment we start working with you.

In addition to our head office in Milton Keynes, we also have offices in Bicester, Watford, and London where we can arrange appointments to see you in person. Talk to us in confidence and find out where you stand. Get in touch – we’re here to help.

This article is intended for the use of our clients and other interested parties. The information contained in it reflects the author’s view and is believed to be correct at the date of publication. However, it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional legal advice.