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Divorce and Money: Who Gets What?

09 April 2025

Divorce can be a tough and emotional time, and it’s often made even harder by the financial side of things. Deciding how to split assets, income, and responsibilities can be complicated. But how does the law decide who gets what in a divorce?

The current laws in the UK, while aiming to be fair, leave a lot of room for interpretation. Judges have quite a bit of flexibility, which can make the process feel uncertain and confusing. This can result in different outcomes, depending on the situation and the judge’s interpretation of the law.

So, what does the law say about financial settlements in divorce?

How Does the Law Decide Divorce Settlements?

In the UK, the Matrimonial Causes Act 1973 is the law that governs divorce settlements. It says that the division of assets should be fair, but fair doesn’t always mean an equal 50/50 split. Instead, the law looks at many factors to make sure the division is as fair as possible based on the circumstances.

Here are some of the key things the court will consider when dividing assets:

1. Each Person’s Financial Resources
   The court looks at each person’s income, property, and other financial resources, both now and in the future.
2. Financial Needs and Responsibilities
   If one person has more financial responsibilities, like caring for children, that will be taken into account. The court may give them a larger share of the assets to meet their needs.
3. Standard of Living
   The court will consider the lifestyle the family had during the marriage. The goal is to make sure neither person is left in a significantly worse financial position.
4. How Long You Were Married and Your Age
   If the marriage was long, the court might lean toward a more balanced settlement, especially if one person gave up their career to take care of the home and family.
5. Health Conditions
   If one person has a physical or mental disability, this can affect their ability to work and earn money, so the court will factor that into the settlement.
6. Contributions to the Family
   Both financial and non-financial contributions are considered. This includes things like caring for children or managing the home, which may not be reflected in monetary terms but are still significant.
7. Behavior During the Marriage
   If one person’s behavior was particularly bad, the court may take that into account, especially if it was unfair to the other party.
8. Loss of Benefits
   The court will also consider things like pensions or health benefits that either party might lose as a result of the divorce.

What About the Children?

If there are children involved, their needs are a top priority. The court will look at things like:

• Their living and educational expenses.
• Any special needs, like a physical or mental disability.
• The contributions of each parent to their care and upbringing.

If one parent isn’t the biological parent of the child, the court will look at whether they’ve still contributed to the child’s care and financial needs.

Unequal Divisions: Why Might One Person Get More?

Given all the factors, the court might decide that one person should receive a larger share of the assets. For example, if one person has greater financial needs or took on most of the childcare duties during the marriage, they might get a larger portion. On the other hand, if one person has a stronger financial position, they might receive less.

What About Civil Partnerships?

For couples in civil partnerships, the rules are similar. The Civil Partnership Act 2004 mirrors the rules in the Matrimonial Causes Act 1973, meaning the financial settlement process for civil partnerships is very much like that of divorce.

What’s Wrong with the Current System?

The Law Commission, which reviews and suggests changes to the law, has said that the current system is too complicated and unclear. It points out that many people going through a divorce don’t fully understand how the court will make its decisions. This lack of clarity can lead to unpredictable and unfair outcomes.

In December 2024, the Law Commission released a report with four potential ways to improve the system:

1. Clarifying the Current Laws
   This would involve simplifying the law so that people can easily understand it, and so that courts apply it more consistently.
2. Reforming Specific Issues
   This model would add new laws, like rules about pre-nuptial agreements, while still keeping the current system.
3. Adding Clear Principles
   The court could follow a set of guidelines to make the process more predictable and consistent.
4. New Rules for Dividing Property
   A more radical approach would involve creating strict rules for how property is divided, which would limit the court’s discretion.

The Law Commission believes these changes would make the process fairer, more transparent, and easier to understand.

Dividing assets in divorce is complex and depends on many factors, from financial resources to the needs of children and the contributions each person made to the marriage. While the current law aims to be fair, it can be unclear and inconsistent. The Law Commission’s proposed reforms could make the process more predictable and transparent, so people going through a divorce know exactly what to expect when it comes to dividing their financial future.

We can help you determine if initiating divorce proceedings is the right choice for you and whether it’s in your best interests. Additionally, we can guide you through the divorce process and provide an estimate of how long it may take.

Call us on 01202 294411 or via online: Contact Us AB Solicitors For Your Legal Needs for details of our fees and to arrange an appointment.

 

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