How are assets divided in a divorce?

Going through a divorce is challenging, whatever the circumstances. But add in the pressure of agreeing who gets what — be it the house, the savings, or sentimental keepsakes — and it’s easy to feel as though the pressure is on. 

For better or worse, there are no hard and fast rules when it comes to splitting assets and property following a divorce. That said, there are a few steps you can follow — whether making the decision between yourselves or in a courtroom setting — to make the process a little easier. 

Marital vs Separate Property 

The first step in asset division will be understanding what constitutes marital versus separate property. Typically, marital property includes assets acquired during the marriage, while separate property includes those owned before the marriage or inherited at any point.  

This article will primarily focus on the splitting of marital property. 

All types of marital property can be subject to division in a divorce, including: 

• Property (such as the family home or any rental properties) 

• Bank accounts  

• Investments  

• Retirement accounts and pensions  

• Personal belongings  

How to start dividing assets in a divorce  

1. Make a list of assets 

Start by listing all of the assets owned by you and your ex-partner. Apart from real estate and investments, your list should include any bank accounts, retirement or pension funds, savings, and significant personal belongings — anything that may warrant a discussion as to how the property is split.

2. Get professional valuations 

For high-value items such as real estate or jewellery, particularly if there’s no mutual agreement as to how they should be divided, obtaining a professional valuation can help make sure you have accurate information as to what’s being split. Misjudging the value of significant items could lead to an unfair settlement for either party.

3. Consider professional support 

When it comes to splitting assets, the support of a family law barrister or mediator can speed up negotiations in more complex divisions.  

A direct access barrister can offer valuable insights and guidance throughout the process — at a lower cost than using a solicitor intermediary — and is able to represent you in court should the need arise. A mediator can facilitate negotiation discussions outside of court, making the process quicker, and in turn, less expensive. 

4. If your case progresses to court

If a fair division of assets can’t be reached privately, you may need a judge to issue a matrimonial finance order. 

A matrimonial finance order is a formal document issued by the court detailing all financial arrangements, including how properties and pension rights will be divided, and stipulates any ongoing financial obligations one spouse might have to the other, such as maintenance payments. 

The judge will consider the needs of all parties — including any children — in outlining the splitting of assets, and both parties will be entitled to legal representation to support further negotiations. 

What is the penalty for hiding assets in a divorce? 

Hiding assets during a divorce is considered a serious offence in the UK. Even when settlements are reached outside of court — such as through mediation or a private agreement — parties remain under a strict legal obligation to provide full disclosure of their assets. 

If hidden assets are discovered at a later point, the penalties can be severe; the agreement may be overturned, there may be financial penalties, or you could be ordered to pay the legal costs of the other party.  

Barrister Connect hosts a number of direct access barristers well versed in family law matters, including complex asset division and matrimonial finance orders. If you’re in need of support with family court proceedings, get in touch with our team to find out how we can help.