Following the breakdown of a marriage, it is necessary for the matrimonial assets to be distributed between the parties. The legal procedure of distributing the financial assets of divorce can be complicated. It can also be a hostile experience for the spouses, which can be due to the courts having wide discretion when they decide who receives what. 

What Are Matrimonial Assets?

Section 25 of The Matrimonial Causes Act 1973 highlights what the courts should apply when dividing the assets of property, maintenance, savings and pension. However, the most important factor arises where the case involves children under the age of 18. This is because this alters how the court exercises its discretion regarding the circumstances of the case, as there first consideration will always be the welfare of the children involved. 

What is Considered When Dividing the Assets

Section 25 of the Matrimonial Causes Act 1973 outlines what the courts should consider when using their discretion to split the assets. As previously stated, if the parties have children, their welfare will be the primary consideration for the courts.

However, the list of considerations outlined by section 25 are:

• Future income, earning capacity, property and other financial resources belonging to the spouses.
• The mental capacity of the parties.
• The current or foreseeable financial needs and responsibilities of each party.
• The standard of living during the marriage.
• The age of each spouse.
• The contributions each of the parties have made or is likely to make in the foreseeable future.
• The conduct of the parties (if the court believes the conduct is unfair to ignore).
• The loss of any benefit because of the divorce

What Decisions Can the Court Make?

 Initially the assets within the marriage are split 50/50 between the spouses, this is known as the ‘yardstick of equality’. The rules surrounding how assets are divided are flexible so they can be applicable to each case. Therefore, it is common that the final decision is not a 50/50 split of the assets because equal division may not be appropriate in some circumstances.

Following the courts consideration of the assets, they have the decision to impose a variety of orders:

• Child maintenance
• Lump Sum
• Sale or Transfer of Property
• Spousal maintenance
• Pension Sharing

The orders given and the overall outcome of the dispute varies depending on the circumstances of the case.

Court Process

When distributing the matrimonial assets within the divorce process there are three hearings. Following application, the court will fix a ‘first appointment’ which is a direction hearing.

The next hearing is known as a Financial Dispute Resolution hearing which is important because it aims to reach an agreement between the parties. The judge will issue an indication of what they believe is the most appropriate settlement of the case. However, this is not binding and if the parties fail to reach a settlement at this hearing the final judgement on the distribution of the assets will be made by a different judge at the final hearing.

Given the courts wide discretion and that the financial situation of every marriage is unique. The outcome and distribution of assets within divorce cases will always vary.

Contact Us

If you wish to discuss divorce and financial matters, our specialist family solicitors are based in both Wolverhampton and Cradley Heath and serve clients across the West Midlands. For all new enquiries, please call 01902 328 355 or complete our online enquiry form and a member of our team will respond.