Whether divorcing or separating, the division of financial assets needs to be decided and ideally recorded in a written settlement . Any final settlement reached will have far-reaching consequences and will deal with income, properties, lump sum payments, pensions and other capital assets.
When dividing finances between a divorcing couple the court will take into consideration:
- Assets: the earnings, property and other financial assets each partner has, or is likely to have in the future.
- Needs and responsibilities: any debts, such as mortgages, that either partner needs to pay off or any children that need to be provided for.
- Standard of living: the difference a divorce will make to the couple’s standard of living, as well as any contributions made to the marriage and their effect on the family’s welfare.
- Duration of the marriage: the length of the marriage, the age of both partners and the likelihood of either partner remarrying.
- Disabilities: any physical or mental disabilities that will require funding for the partner to cope by themselves.
- Behaviour: the behaviour of either partner may, in exceptional circumstances, be taken into consideration.
- Benefits: any benefits brought to the marriage that may be lost on divorce, such as pension schemes.
