Divorce settlement UK: how are assets split?
Quick answer
- There is no fixed formula. It’s not always 50/50.
- The court aims for a fair result, with needs (especially housing and children) coming first.
- Pensions are often one of the biggest assets. Don’t forget them.
- Make any agreement legally binding with a consent order.
This guide covers England and Wales.
Is a divorce settlement always 50/50?
No. Equal sharing is often the starting point for assets built up during the marriage, but the court can move away from it, especially where one person needs more, for example to house the children.
What does the court look at?
- each person’s income and earning capacity
- needs, especially housing
- age and length of the marriage
- the standard of living during the marriage
- contributions, including looking after the home and children
- any disability
The welfare of children under 18 comes first.
Full financial disclosure
Both people must give full and honest disclosure of property, savings, pensions, debts and income, often on a form called Form E.
Hiding assets
Hiding assets is taken very seriously. A settlement based on dishonest disclosure can be set aside.
What happens to pensions?
Options include:
- pension sharing: a percentage is transferred to the other person
- offsetting: one keeps the pension, the other gets more of something else
- attachment: payments made when the pension is paid out
Making it legally binding
An informal agreement is not enough. Ask the court to approve a consent order. A clean break ends future financial claims between you.
Tip
Without a court order, your ex may still be able to claim against you years after the divorce.
FAQs
Who gets the house in a divorce?
It depends on needs, especially where the children will live, and what can be afforded. Options include selling, one person buying the other out, or delaying a sale.
Is inheritance included in a divorce settlement?
It can be considered, especially if it is needed to meet needs, but it is often treated differently from assets built up together.
Do we have to go to court?
Most couples settle through negotiation or mediation. The court only needs to approve the agreement.
Need advice on your settlement?
We help you understand what a fair outcome could look like. See our family law services or contact us in confidence.
This article is general information about the law at the date of publication. It is not legal advice and should not be relied on for your situation. The law and Home Office or court procedures may change. Please contact us for advice on your circumstances.
