The Japanese Shinichi Suzuki once said:
Love is grand; divorce is a hundred grand.
Many married couples assume that assets get split 50/50 during divorce.
But this isn’t always the case.
Dividing assets (including proceeds from selling a house after divorce), is complex.
Each case is different.
Section 25 & fairness
In the UK, section 25 of the Matrimonial Causes Act of 1973 influences divorces. And since 2000, the overriding factor in family cases is fairness, comprises of:
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Needs
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Compensation
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Sharing.
Section 25 addresses each of these elements in-depth, including aspects such as:
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The type of divorce (mutual or contested)
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Financial affairs management during the marriage
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Pensions
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Financial needs
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Standard of living
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The conduct of each spouse.
The court has the final say
Section 25 gives guidance, not an exact formula for the divorce outcome.
The court decides the latter. It assesses each spouse’s claim against stipulations of needs, compensation and sharing.
Making a decision
During divorce, answer all your solicitor’s questions in full. Don’t hold back through fear or embarrassment.
As your legal aid, they need to see the full picture to put together your case.
Give them all financial information about you and your spouse, including:
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Details of any pensions
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Property details (including getting it valued during divorce)
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Mortgage details (including for joint tenancies).
Children come first
Make sure to voice that you have dependent children if this is the case.
The courts and family law put the welfare of the family and children above anything else.
What happens to your home during divorce?
Splitting property proceeds after divorce depends on several factors.
In most scenarios one spouse will usually buy the other out. Or the property gets sold, the mortgage paid, and the cash split between the two parties.
It’s important to note that leaving the house during divorce is not advisable.
Children are also taken into consideration.
The primary caregiver often stays in the property with children until they are 18. Or until they have finished full-time education.
Some properties get sold if they exceed the needs of the spouse and children they are caring for.
Businesses
During a divorce, businesses get treated as assets of the family home. This happens regardless of whether:
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They were founded before the marriage
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They are solely owned by one spouse.
Going to court
It should be remembered that not all asset division cases end up going through the courts.
This is only a last resort when a divorcing couple cannot reach a financial settlement.
The judge will take into account all the Sector 25 factors. And they will consider:
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Ages of spouses
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Duration of the marriage
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Earning capacity
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Financial needs of each party.
The judge will divide assets based upon what is fair and reasonable.
If they believes that there is a good reason to split assets unequally, they have the discretion to do so.
