How Properties Are Divided in Divorce

How Are Properties Divided in a Divorce?

In a UK divorce, property division is based on fairness - not simply legal ownership. Whether a property is in one spouse’s name, jointly owned, or held with a third party, the court will assess its relevance to the marriage and decide how it should be treated in the financial settlement.

What Types of Property Can Be Divided?

Property can be:

• Solely owned by one spouse
• Jointly owned (as joint tenants or tenants in common)
• Co-owned with a third party

If a third party has an interest in the property, they may need to be joined to the proceedings.

Matrimonial vs. Non-Matrimonial Property

Broadly, to be considered for division within financial proceedings, a property – or interest in a property - must usually be ‘matrimonial’ in nature. Matrimonial assets are those built up by the parties during the marriage period (generally including the period of seamless cohabitation leading to marriage, until the date of separation).

They are distinct from ‘non-matrimonial’ or ‘pre-marital’ assets, which are assets acquired before the marriage, after separation, or received as a gift or inheritance. These may be excluded - unless needed to meet the other party’s needs.

Note: The exception to this is the family home, which is considered separately and, in principle, shared equally between the parties regardless of legal ownership. If you are not a legal owner of your family home, you can apply to register your ‘matrimonial home rights’, which protect your right as the spouse of the legal owner to occupy the property pending conclusion of any financial proceedings.

Occupation of the family home following separation can also be regulated, in some cases, by an occupation order.

Can a Non-Matrimonial Property Become Matrimonial?

During the course of a marriage, a pre-marital property may become ‘matrimonialised’ and subsequently open to consideration for division within the proceedings.

This is often the case where a property was occupied as the family home for a period of time. It is also possible to acquire a beneficial interest in a property in some specific circumstances, even if you are not married, such as contributions to the purchase price (including mortgage repayments) and/or renovations undertaken to the property.

How Do Courts Decide Property Division?

Division of properties held by the parties to a marriage will depend on various factors. The court considers:

• Whether the property is matrimonial
• Each party’s financial and non-financial contributions
• The needs of both parties and any children
• Whether the division achieves a fair outcome

At the conclusion of financial proceedings, the court can order:

• Transfer of ownership
• Sale of the property
• Deferred sale (e.g. via a Mesher order)

Vardags works exclusively with high and ultra-high net worth clients at all stages of the divorce process. We can examine and challenge valuation reports, provide a critial review of the supporting evidence provided by experts during court proceedings, and tailor our approach to ensure a favourable outcome on a case-by-case basis.

If you’re considering or going through a divorce, click below for a free initial consultation with one of our expert divorce solicitors.

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Frequently Asked Questions

Q: Is property always split 50/50 in divorce?

A: Not necessarily. The court aims for fairness, which may mean unequal division based on needs.

Q: Can I keep a property I owned before marriage?

A: Possibly. If it’s non-matrimonial and not needed to meet the other party’s needs, it may be excluded.

Q: What if the house is in my spouse’s name?

A: You may still have rights if it was the family home or you contributed to it.