Locations we serve
Locations we serve
Locations we serve
Divorce
Divorce
Divorce
Other Services
Services
Services
020 7404 9390
Available 24 hours
BOOK CONSULTATION WHATSAPP US MESSAGE US PHONE US

How are different assets, incomes, and liabilities treated by the courts?

In deciding how to fairly divide assets upon divorce, the courts are guided by three main principles: sharing, needs, and compensation. These principles are interconnected and guide the judge in reaching a fair and equitable settlement. Among them, needs holds particular significance as a paramount consideration in the pursuit of fairness.

In making a division, the court will consider if needs are able to be met from the available assets and whether there is a surplus. Where there is a surplus, the court may consider the origin of the assets, whether they are matrimonial or non-matrimonial, and whether the contributions have been unequal. In short, a party is to be awarded the higher of their needs entitlement and sharing entitlement.

As a general rule, the court takes into account Section 25 of the Matrimonial Causes Act 1973 which sets out various requirements that the Courts need to consider when deciding how assets will be divided. The first consideration is the welfare of any child under the age of 18. The court must also have regard to the following factors:

• The income,earning capacity, property and financial resources of each spouse

• The needs of each spouse

• The standard of living enjoyed by the family before the relationship broke down

• The age of the parties and the length of marriage

• If either spouse has a disability

• What each spouse contributed to the marriage (including future contributions)

• The value of assets both before, during and after the marriage

• The conduct of the parties, but only where it would be inequitable to disregard it

Additionally, as explained above, the court is guided by the three overarching principles of needs, sharing and compensation. Each case is unique, and the courts will examine all circumstances in coming to a decision.

Vardags team of top divorce lawyers delivers a bespoke legal service to HNW and UHNW individuals, their families, and businesses.

If youre considering or going through a divorce and want to know more about how your assets and income will be treated by the courts, click below for a free initial consultation with one of our expert divorce solicitors.

BOOK FREE CONSULTATION

The information on this website is intended as a guide and does not constitute legal advice. Vardags do not accept liability for any errors in the information on this website, nor any losses stemming from reliance upon the statements made herein. All articles and pages aim to reflect the legal position at time they were published, and may have been rendered obsolete by subsequent developments in the law. Should you require specialist advice, tailored to your situation, please see how Vardags can help you.