Divorce is a difficult time for all parties involved, with the division of assets being one of the more complicated issues to navigate. When considering how to split assets in a divorce it is important to understand that a division of assets needs to result in a fair split between both parties. Sometimes, but not always, this will mean a 50/50 split.
How are assets divided in a divorce?
The division of assets during a divorce must be fair and not leave either party in a difficult situation where they can no longer sustain themselves moving forward. 50/50 is not always a fair division of assets particularly if one party has paused their career to stay at home raising a family. In such a scenario, fairness may require a different percentage such as 60/40, 70/30, or even 80/20. When considering whether the agreement is fair, the court will take into consideration several factors including:
- The financial needs of any children
- The financial needs of both parties
- The standard of living that each party had before the divorce
- Any physical or mental ailments either party is facing
- The contributions each party has made or will continue to make in the future
For a more technical article on how assets are divided in divorce, see: https://demstonechambers.co.uk/what-does-the-family-court-take-into-account-when-making-a-financial-order/ .
What are some common assets that will be divided?
When the family court is looking at how to split assets in a divorce, everything is on the table. Assets such as the family home, any personal savings, business assets, pensions, and personal belongings, all need to be divided fairly.
What happens if an agreement cannot be reached?
Where couples cannot agree on how to divide their assets, they will have two options: mediation or court.
Mediation
Mediation involves both parties completing an initial assessment called a Mediation Information Assessment Meeting (MIAM) with a family law mediator. The legal representative will then work to understand what is available and create what they regard to be a fair division of assets which allows both sides to be financially stable following the divorce. Each side will then receive a Memorandum Of Understanding. This is an agreement between the two parties which sets out the division of assets. This will however need to be made legally binding by a consent order from the family court. A consent order can be drafted by a family lawyer and submitted to the court.
Financial Remedy Proceedings
When a divorcing couple cannot agree on a fair division of assets, then financial remedy proceedings in the family court are inevitable. These will begin with both parties filling out a Form E, which is essentially a declaration of assets. This will then be submitted to the family court, which will decide what a fair division of these assets is. Proceedings will start with a first hearing (also known as an FDA), then proceed to a financial dispute resolution hearing (also known as an FDR), and end with a final hearing in the family court. For a more detailed look at Financial Remedy Proceedings, see our article here.
How our family law barristers can help with dividing assets
If you cannot agree on a division of assets with your former partner, then you will need to seek professional legal help. Demstone Chambers are a family law barristers chambers based in Milton Keynes. We can however offer our services in London, Birmingham, Coventry, and across the UK. We are able to offer support with financial remedy proceedings whether you need help with a specific part of proceedings (such as drafting and submitting a consent order to the family court) or would like us to represent you from start to finish. To find out more about how our family law barristers can support you with the division of assets in a divorce, contact us today.