Navigating divorce and financial settlements can often be challenging and overwhelming. There are a number of important factors that come into play when looking at how to divide matrimonial assets, and the end goal is always to make sure that a settlement is fair.
While each case is different, there are a few key considerations when looking at what your settlement might look like. These form part of the Matrimonial Causes Act 1973 framework which Judges and Solicitors use to assess what the division of assets should be.
Are there any children?
A court’s first and foremost concern, is to ensure that any children are adequately housed as far as possible, and that stability and any educational or additional needs are taken care of.
Income, earning and borrowing capacity and other financial resources
You will need to consider both parties’ income and earning capacity. Is everyone maximising their earning capacity? Are there any reasons that one party may not earn or be able to earn as much as the other such as age, health conditions/disabilities or childcare? These are important factors as earning capacity will affect borrowing capacity and the ability to rehouse.
Financial Needs
In circumstances where one party may not be able to earn as much as the other, you may need to look at maintenance provisions to meet your financial needs, or a scenario where the lower earner takes a larger share of the matrimonial pot.
Standard of living
Although not always possible, the aim is that your standard of living should not decline significantly post-divorce.
Contributions to the marriage
This does not always mean financial contributions; caring for the children and home are equally valuable contributions.
Pensions
Retirement could be some way away, but consider your pension provisions and income on retirement. In instances where one party has a much larger pension provision than the other, a pension share may be appropriate.
SE-Solicitors Family Team
If you would like to talk to one of our specialist Family Lawyers in respect of what a financial settlement may look like for you, please contact me to arrange a meeting at cjudge@se-solicitors.co.uk or on 01869 222329.
