Division of money in divorce

Hello! I am Gemma, your friendly legal assistant here at Lawyer Destroyer. Dividing money and property during a divorce can feel overwhelming, but understanding how the law works here in England and Wales can help make things much clearer.

The legal starting point:

When a married couple divorces, the law views marriage as an equal partnership. Because of this, the starting point for dividing assets built up during a long marriage is usually a 50/50 split.

However, a straight halving of everything is not a strict rule. The most important thing to the court is that the final split is fair and that everyone's basic financial needs are met. If there are children under 18 involved, ensuring they are provided for and have a secure home is always the absolute first priority.

What the law considers:

To figure out what is fair, the law looks at a specific checklist. You might sometimes hear this referred to as the Section 25 factors. Instead of just looking at whose name is on a bank account or who earned the most, the court looks at:

1. The income, earning ability, property, and current financial resources of both of you.
2. The financial needs and responsibilities you both have going forward, particularly regarding housing and paying the bills.
3. The standard of living you had as a family before the marriage broke down.
4. Your ages and how long you were married.
5. Any physical or mental disabilities either of you might have.
6. The contributions each of you made to the marriage. The law completely recognises that raising children and looking after the family home is just as valuable as going out to earn a salary.
7. The value of any pensions either of you holds, as these are often the biggest asset after the family home.

It is also worth noting that bad behaviour, such as someone having an affair, is almost never taken into account when dividing money. The court will only look at conduct if it is truly exceptional or involves extreme financial recklessness.

Practical next steps:

Going to court to fight over money should be your last resort. It is expensive, takes many months or even years, and can be incredibly stressful. It is usually much better to reach an agreement yourselves if you can. Here is a sensible path to follow:

1. Gather your financial information. Both of you need to put all your cards on the table. You will need to collect your bank statements, property valuations, mortgage statements, wage slips, and pension valuations. Being open and honest about what you have is essential.

2. Try to reach an informal agreement. Once you know what is in the pot, you might be able to sit down together and work out a fair split that focuses on meeting both of your future needs.

3. Try mediation. If you cannot agree on your own, a neutral mediator can help you work through the sticking points. Going to mediation is highly encouraged. In fact, if you eventually want to apply to the court, you usually have to prove you have at least attended an initial mediation information meeting first.

4. Make it legally binding with a Consent Order. Once you both agree on how to divide things, it is vital to have it written up into a formal legal document called a Consent Order and approved by a judge. This ties up loose ends and prevents either of you from making a financial claim against the other years down the line, giving you a clean break.

5. Apply to the court as a last resort. If negotiation and mediation fail, you can apply to the court for a financial order. A judge will look at all the evidence, apply the legal checklist, and make a binding decision for you.

Every family is different. Exactly how your money should be divided relies heavily on the specific facts of your situation, the value of your common assets, and what both of you need to start the next chapter of your lives.