Contrary to common belief, the asset split following divorce or dissolution in the UK does not follow strict rules. When it comes to the division of marital assets, the courts typically aim for a fair split for both parties. Whether you receive a 50/50, 60/40, 70/30 split or even 80/20 split will depend on your unique financial and personal circumstances and those of your ex-partner. Marital assets to be split a divorce may include pensions, property, savings, investments, possessions, vehicles, art, or any other financial resources.
Factors affecting the division of assets in a divorce in the UK
There is a common misconception that people getting divorced in the UK receive a 70/30 asset split. In reality, there is no standard ’70/30 split rule’ in UK divorce law. This doesn’t rule out the possibility of receiving a 70/30 or even an 80/20 split, but the point is that there is no one-size-fits-all solution for dividing assets in a divorce. A 50/50 split is only the starting point. To work out a fair division of marital assets, the courts consider various factors that may lead to a deviation from an equal 50/50 split, as follows:
- The welfare of any children
- The financial resources of both parties
- The financial needs, obligations and responsibilities of each person now and in the foreseeable future
- The contributions made by each person to date and in the foreseeable future
- The standard of living enjoyed by the couple during the marriage
- The age of each party to the marriage
- Any physical or mental disability
- The conduct of each person
The welfare of any children
The courts will typically prioritise the needs of children from a marriage, taking into account their financial needs, income, earning capacity, property and other financial resources, any physical or mental disability, and the way the child was being educated during the marriage.
The financial resources of both parties
The courts will take into account the current and future income, earning capacity, property and any other financial resources of each party. The law states that courts must consider the financial resources that both parties will have in the foreseeable future, including any increase in earning capacity.
The conduct of each person
The general rule followed by the court is that they will only consider conduct as a factor when making a decision on an asset split “if that conduct is such that it would, in the opinion of the court, be inequitable to disregard it”. In other words, if one person’s conduct was so serious during the marriage, the court may award them a smaller share of the marital assets.
What is a fair split in divorce in the UK?
A fair split of marital assets following divorce in the UK depends on the reasonable needs of both partners and will vary from case to case. The truth is that there is no norm for splitting equity after separation or a divorce. While the starting point may be 50/50 from the perspective of courts, a fair split may be 60/40, 70/30, 80/20, or even 95/5. Check our article “Fair Divorce Settlement Examples” to learn more.
In your own case, it may be that you need a greater share of the marital assets to move on with your life and purchase a new home compared to your ex-partner. This may be because you have lower borrowing and earning capacity and hence need more to cover any shortfall in covering the purchase price of a property.
If you are unsure how your marital assets will be split following a recent divorce, speak to one of our divorce law solicitors, who can give you a solid idea of the likely outcome given your unique circumstances and those of your ex-partner.
Negotiation on splitting assets in a divorce
Where possible, ex-partner are always encouraged to reach their own mutual agreement on splitting assets in a divorce through direct negotiation. By working together, separating couples can come to an agreement that works for both people without causing resentment and animosity. If you have reached a negotiated agreement on the division of assets with your ex-partner, it is still important to have this made legally binding in the form of a Consent Order that has been approved by the courts. This will mean that your agreement can be legally enforced if it is breached by the other party.
To discuss how to negotiate a fair settlement of your marital assets and how to have the agreement made legally binding, please contact our divorce solicitors, who can guide you through the process and ensure that your needs and those of your children are met.
