One of the main considerations during divorce proceedings is how to approach splitting assets. However, navigating this process can be complex. It can also have an emotional impact on the separating couple.
In addition to requiring a clear understanding of legal rights and obligations, there must be a fair and balanced approach to dividing property. Whether you’re in the middle of the divorce process or you’re about to get divorce proceedings underway, it’s important that you understand how assets are divided. This can help you navigate the transition into the next phase of your life as smooth as possible.
Understanding your legal rights
In the UK, the law aims to divide assets fairly, though not necessarily equally. This is where the decision of the court can leave one or both members of the separating couple unhappy or dissatisfied with the outcome.
In order to decide how assets are shared, the English and Welsh courts follow The Matrimonial Causes Act 1973, which provides the guidelines. These provide the legal framework around financial claims involving property, savings, pensions, and maintenance. Case law, which is the term used for previous cases, is also used in some divorce proceedings to help make a decision.
The main factors that are considered here include:
- The length of the marriage
- The ages of the parties involved
- The separating couple’s respective financial needs
- Contributions (both financial and non-financial) to the marriage
If you’re trying to work out how your assets will be divided between you and your ex-partner, it’s important that you know there’s a difference between marital and non-marital assets. Marital assets are bought or gotten during the marriage, and these will be the assets the court rules on. Non-marital assets, such as inheritance or gifts received individually, might not factor into this part of your divorce proceedings.
Assessing asset value
The value of your assets is key to getting a fair outcome. Listing all assets, including properties, bank accounts, investments, pensions, and personal belongings will help to build a picture of how much everything you own as part of your marriage is worth. You might need to get professional valuations for property, businesses, or any valuable collectibles.
As well as the assets you own, you’ll need to list all liabilities and debts. These include mortgages, loans, and credit card debts and adding this information will give you a full picture and the net worth.
Being transparent and honest is vital during this stage to avoid future disputes and to make sure you and your ex-partner get a fair outcome.
Negotiation strategies
Effective negotiation can often lead to a more amicable and fair division of assets. It can also reduce the time spent on court proceedings.
Begin by creating an open and respectful dialogue with your ex-partner. Mediation services could be helpful here, as these are a neutral third party that can prompt useful discussions and help you to reach a compromise.
It’s important to be willing to give and take, prioritising what you need over what you want. Having a clear understanding of your financial situation and being prepared with documented evidence can put you in a stronger negotiating position.
Dealing with sentimental items
While handling the big-ticket items, like the family home and car, can involve a deeper process, dividing sentimental items can also be a sticking point. In fact, this could be one of the most emotionally charged aspects of a divorce. These belongings often carry personal value that far outweighs their monetary worth.
Start by identifying items of sentimental importance and discussing their emotional significance with your ex-partner. It may be helpful to agree on a few key items each person feels strongly about and then you can take the rest of the negotiations from there.
In some cases, creating a sharing arrangement for items like family heirlooms can be a practical solution. Try to be cooperative as this will help to reach an outcome that you’re both happy with and can reduce emotional stress.
Getting professional advice
Involving professionals can provide clarity and fairness in the asset division process. Mediators can assist in resolving disputes amicably, while solicitors specialising in family law can offer legal advice. They’ll make sure that your rights are protected and that you understand the legal implications of any agreement.
You might want to speak to a financial advisor too. They can assess the value of complex assets and tell you if there are any tax implications.
It’s worth getting advice as early as possible so that you have an idea of how your assets will be shared out.
