How to split the finances in a divorce
Property and Financial Settlement
The court aims for a fair division of assets and considers factors like the length of the marriage, each party’s financial needs, contributions to the marriage, and the welfare of any children.
Settlements can include the division of income, capital, pension, and property.
Children Arrangements
The welfare of the children will be the paramount concern of the court and the court will want to know how the housing needs of the children will be met. Decisions about children arrangements are based on the best interests of the child. Parents are encouraged to reach an agreement themselves, but the court can intervene, if necessary.
Child Maintenance
The non-residential parent typically pays child support to the parent with whom the child lives. The amount is determined by the Child Maintenance Service (CMS) using a set formula that considers the non-residential parent's income and the number of children.
Spousal Maintenance:
One spouse may be required to pay maintenance to the other. This decision is based on factors such as the financial needs and resources of each party, their standard of living during the marriage, and their future earning potential.
Factors Considered by the Court
When deciding on financial settlements, the court considers several factors:
Income, Earning Capacity, and Financial Resources: The current and future financial resources of both parties, including income, savings, and pensions.
Financial Needs, Obligations, and Responsibilities: The financial needs and obligations of each party, including housing, living expenses, and debts.
Standard of Living: The standard of living enjoyed by the family before the breakdown of the marriage.
Age and Duration of Marriage: The age of both parties and the length of the marriage.
Contributions: Contributions made by each party to the welfare of the family, including non-financial contributions such as homemaking and childcare.
Health: Any physical or mental disabilities that may affect earning capacity or financial needs.
Conduct: In rare cases, the conduct of either party, if it is so serious that it would be inequitable to disregard it.
Disclaimer
The information contained in this article is intended for informational purposes only. It does not constitute legal advice, nor does it substitute for legal advice. You should seek proper legal advice in respect of your matter. Any reliance you place on such information is therefore strictly at your own risk.
