Photo Credit: Claassen Attorneys via flickr

As a newlywed, you likely never gave a thought as to who would retain the home or how the assets would be divided in the event of a divorce. That’s ominous, right?

But when your marriage is on the rocks, divorce bells begin to ring. Deciding to get divorced is difficult on both a financial and emotional level. On the financial level, things can get a bit confusing because there are no ‘straight’ rules regarding what each spouse should get.

So how are assets divided in a divorce?

The couple can work together to decide how to split up property, debts, and assets. But if your divorce is contentious, things can get complicated and you may have to involve the court. In this article, we’ll discuss how assets are divided in divorce with reference to section 25 of the Matrimonial Causes Act.

Sharing of Assets: Who Gets to Keep the Family Home?

For many couples, the family home is their most valued asset and is often the subject of dispute when it comes to dividing assets in a divorce.

As far as the family home is concerned, the easiest solution is to reach an amicable agreement and settle the issue without involving the court. The couple could agree to sell the house and share the proceeds equally or unequally. Many companies, like Sellhousequickly.co.uk, are always ready and willing to buy homes so the process should be fast and hassle-free.

Alternatively, the couple could agree for one spouse to retain the family home while the other keeps assets of equivalent value, such as stocks or rental property. When the parties cannot reach a consensus regarding who should keep the family home, they may choose to go to court.

In such cases, the court may invoke a Mesher Order providing for the family home to remain in the joint names of the couple but allowing the party who has the primary care of the children to retain it, until a stipulated period, such as when the children reach the age of 18.

Where all the children are above the age of 18, the court may invoke a Mesher Order allowing the primary carer to keep the home while releasing the other party of any mortgage-related obligations.

Sharing of Assets & Debts: How Does the Court Ensure an Equitable Distribution

To give an impartial judgment, the court will take into account various factors when dividing assets and liabilities. These factors are contained in section 25 of the Matrimonial Causes Act 1973 and are known as Section 25 Factors.

The main factor that will influence a judge’s decision is the needs of those involved, particularly children. The welfare of children will always take precedence and the judge will analyze the whole scenario and make a decision that will ensure minimal disruptions to their lives. Other Section 25 factors that a judge will consider include:

• The health of both parties
• The ages of each spouse and the duration of their marriage
• The financial needs, including any financial obligations, that each party will need to meet in the foreseeable future
• The income earning capacity of each spouse
• The benefit that each party will lose as a result of divorce

The judge will take into account each of these factors before making the final decision. The decision will be based on what the judges will deem fair and reasonable even if the parties don’t agree with the final verdict.