Dealing With Assets In A Divorce

When going through a divorce, couples often find one of the hardest things is trying to set up home on a single income. Previously, they had a joint income and joint assets and only one property to maintain.

It is therefore helpful that you are aware of what will be considered and the powers of Courts in making their decisions regarding money and assets. 



Although the Child Support Agency (CSA) is responsible for considering where any children will live, one of the main concerns for a Court is keeping the best interests of the children as a priority. Parents can now come to their own financial arrangement. The Courts will then, in every case, also bear in mind the following circumstances, as set out in The Matrimonial Causes Act 1973:

1) On one hand ANY income, earning capacity, property and other financial resources available and, on the other hand, the financial needs, obligations and responsibilities, which each  of the parties to the marriage has or might have in the immediate future;

2) The standard of living enjoyed by the family prior to the marriage ending;

3) Each party's age and health and the duration of the marriage;

4) The contributions each has made or is likely to make in the foreseeable future to the welfare of the family - that includes caring for the family or maintaining the home;

5) The value to each of the parties of any  benefit (eg a pension) which a party will lose the chance of acquiring by reason of the dissolution or annulment of the marriage.

These are the issue that will be looked at when assets of couple getting divorced are being shared out. By recording all the sources of income or assets, the Court can then set about dividing the total as fairly and reasonably as possible.

Powers of the Court to make orders dividing assets are practically infinite, and they will use any number of the orders below, known as ancillary relief orders:

- orders for maintenance pending suit.

- periodical payments orders.

- secured provision orders.

- property adjustment orders.

- lump sum orders.

- pension sharing/attachment orders (only for spouses).

Courts have to consider how they can affect a 'clean break' for the divorcing couple as soon as they can; this is what happens in many cases.

Following cases when the Court approached the dividing of assets differently, changes have come about. The general principle is that assets or income generated for the duration of the marriage are considered 'matrimonial property' and therefore require more or less equal division. 'Non matrimonial property' (created or introduced after the marriage comes to an end) is considered to belong to the person whom has generated it.

A common misconception by parties to a divorce is that Courts will take behaviour of the parties into consideration, whereas they will only do that in particularly extreme circumstances where it would be unfair to disregard it. In normal circumstances however the Courts are predominantly involved in the practical financial matters.

Sadly however, arguments over money following marriage breakdown can be protracted, expensive and highly emotionally damaging. Any responsible and sensible Divorce Solicitor will talk to divorcing couples about Collaborative Law and Family Mediation - both of which highly successful approaches stress the need to seek agreement rather than treating divorce as a battle to be won.