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Who Gets What? Understanding How Assets Are Divided in a UK Divorce

Divorce in England and Wales 

The Office for National Statistics reports that there are over 80,000 divorces in England and Wales each year. The number for 2022 (the latest figure available) was a decrease on the previous year, but there were still over 6 divorces per 1,000 of the married population. Partners are eligible for divorce if they have been married for more than a year, their relationship has permanently broken down, and their marriage is legally recognised (per gov.uk).

Assets 

Several factors dictate how assets are divided. These include:

  • Financial contributions (inputs by each spouse, including income and property acquisitions). If one spouse has significantly higher earning potential, they may be ordered to provide maintenance to address the disparity. If a spouse has sacrificed career opportunities during childcare, they may receive more support to balance earnings.
  • Non-financial contributions, such as homemaking. The court acknowledges that raising children and managing the household contribute to the family’s wellbeing.
  • Standard of living (lifestyle during the marriage can influence maintenance and asset distribution). Practical limitations mean that maintaining lifestyle is not always possible, especially if resources are limited.
  • Future needs and resources of each party. Courts evaluate short- and long-term needs (housing, healthcare, retirement provisions); if one spouse has greater earning potential, this may influence the division of assets.
  • Children’s welfare. The court prioritises ensuring children have consistent care, stable housing, and adequate financial support.

The emotional nature of the last factor, children’s welfare, can make divorces particularly stressful. Edward Kruk Ph.D, writing for Psychology Today, argued for the benefits of shared parenting. He said the involvement of both parents continues the children’s relationships and routines and provides order and stability during and after divorce. “Children need both parents, as they see themselves as made up of half their mother and half their father. Any disparagement of one or the other parent is thus an attack against the child’s very essence, his sense of self-worth, and dishonors the child.

The court aims to balance the above factors to reach a fair settlement. The subjective nature of what is fair can lead to varied outcomes.

The current system 

The discretionary nature of the current legal system “promotes dispute”, according to the Law Commission. A 2024 report, which advised the UK government on legal reforms, also said that decades-old laws “could be argued to be inconsistent with the rule of law”.

Financial Times wrote, “London has earned a reputation as the ‘divorce capital of the world’ thanks to the perceived generosity of court-sanctioned financial awards handed to ex-wives.”

Courts consider the financial needs of both parties, but the Law Commission said this was a “nebulous concept”. The fact that judges have discretion in interpreting the law, some argue, results in inconsistency and unpredictability.

Divorce law is uniform across areas in England and Wales, meaning there are no differences in Manchester, Cardiff, London, or Cheltenham, for example. Solicitors in Cheltenham can provide expert advice on divorce and separation, financial arrangements, and both pre-nuptial and post-nuptial agreements.

Possible reforms 

The commission suggested possible reforms, ranging from a more moderate “codification” of existing laws to firmer rules on how assets are divided.

The latter suggestion, reported FT, “would require a wholesale reform of the law in England and Wales.”

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