Understanding Your Assets and the Impact of Divorce
23rd October, 2024
Divorce can be a challenging and emotional process, often made more complex by the division of assets. That’s why it's important to know the difference between matrimonial and non-matrimonial assets, as well as how property, high-value possessions, money, and pensions are treated.
In this article, we will explore these topics in detail, offering insights into how our divorce solicitors can protect your assets.
Matrimonial assets
Matrimonial assets refer to any assets acquired during the course of the marriage.
This can include the family home, joint bank accounts, pensions accumulated during the marriage, and any other property or investments purchased together. These assets are typically subject to division between both parties with a starting point of equality.
Non-matrimonial assets
Non-matrimonial assets, on the other hand, are assets that one party brought into the marriage or acquired through inheritance or gifts from third parties.
Generally, these assets are not automatically divided upon divorce, but they can become subject to consideration if they have been combined with matrimonial assets, used for the benefit of the family or if the needs of the parties in the case require it.
A divorce solicitor can help you identify and categorise your assets correctly, and provide a clear understanding of what constitutes matrimonial and non-matrimonial assets. This is a crucial step in achieving a fair divorce financial settlement.
Property, high-value possessions, money, and pensions
Different types of assets are treated differently in divorce. Here is how you can expect property, high-value possessions, money, and pensions to be handled:
- Property: The family home is often the most significant asset in a marriage. Whether it is owned jointly or by one party, it is usually considered to be a matrimonial asset. The court can order the property to be sold and the proceeds divided, or one party may buy out the other’s share. A divorce solicitor can provide guidance on the best approach based on your circumstances.
- High-value possessions: High-value possessions such as luxury cars, jewellery, and artwork are also subject to division. Their value needs to be accurately assessed, often requiring professional valuations. These items are typically divided in a way that reflects their worth and each party’s contributions.
- Money: Bank accounts, savings, and investments are divided based on their current value. Joint accounts are usually split equally, while individual accounts are considered alongside other financial resources to ensure fair distribution.
- Pensions: Pensions can be one of the most complex assets to divide. The value of the pensions that accrued during the marriage are considered to be a matrimonial asset. Various methods, such as pension sharing orders, offsetting, or earmarking orders, are used to divide pensions. Again, a divorce solicitor with expertise in divorce financial settlements can help determine the most beneficial approach.
Options to protect your assets during a divorce
Protecting your assets during a divorce requires careful planning and legal expertise. Here are some things to consider:
- Pre-nuptial and post-nuptial agreements
A pre-nuptial or post-nuptial agreement can clearly outline the division of assets in the event of a divorce.
These agreements must be fair and entered into willingly by both parties. A divorce solicitor can help draft and review these agreements to ensure they are legally binding.
- Financial disclosure
Full financial disclosure from both parties is essential.
Hiding assets can lead to legal consequences and an unfavourable divorce financial settlement. Transparency ensures a fair process and protects your interests.
- Mediation
Mediation offers a simpler approach to asset division. It allows both parties to discuss and agree on the distribution of assets with the help of a neutral mediator. The mediator does not act as a judge; their role is to help the parties to reach their own informed decision.
This process can lead to a more amicable and fair divorce financial settlement.
- Legal advice
Contacting a divorce solicitor early in the process can provide you with the legal advice needed to protect your assets.
We can guide you through the complexities of asset division, represent your interests in negotiations, and ensure that your rights are upheld.
Seeking support from a Ward Hadaway divorce solicitor
Understanding your assets and their treatment in a divorce is essential for achieving a fair outcome.
At Ward Hadaway, we can help you distinguish between matrimonial and non-matrimonial assets, and knowing how property, high-value possessions, money, and pensions are divided, can help you prepare for the financial implications of divorce.
Get in touch
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
This page may contain links that direct you to third party websites. We have no control over and are not responsible for the content, use by you or availability of those third party websites, for any products or services you buy through those sites or for the treatment of any personal information you provide to the third party.
Follow us on LinkedIn
Keep up to date with all the latest updates and insights from our expert team
