Are Finances Always Split 50/50 in a Divorce?

It is a common misconception that finances are automatically split 50/50 in a divorce.

In reality, it’s quite rare that assets, especially housing, are divided equally.

The primary goal of family law and the court is not to divide assets equally, but to ensure that both parties' financial needs are met. The concept of need is the key factor in most cases. Only in situations where there is a significant surplus of money do courts start considering an equal split.

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Why 50/50 Splits are Uncommon

Let’s consider an example where the main asset in the marriage is the family home, with £300,000 available after the sale. One spouse earns £75,000 annually, while the other earns just £10,000 because they work part-time to care for the children.

If the £300,000 was split equally, each spouse would receive £150,000. The higher-earning spouse could borrow an additional £250,000 using their income, giving them a total of £400,000 to buy a new home. However, the lower-earning spouse, with only £150,000 and limited borrowing power, would struggle to afford suitable housing.

This outcome would not meet both parties' housing needs, which is why courts often divide proceeds from the sale of a home unequally. Each person’s financial situation at the time of divorce is usually quite different, and the court aims to provide an arrangement that allows both spouses to secure suitable accommodation.

Outcome-Led Approach

When dividing assets in a divorce, particularly in cases driven by need, the focus is on finding a practical solution that works for both parties. The question to ask is not “How do we split everything equally?” but rather “How do we ensure that both of us can meet our financial needs, including securing housing?”.

This process often involves understanding mortgage capacities, local property prices, and how each person can afford to move forward after the marriage.

Next Steps: Seek Professional Advice

Every divorce is different, and financial arrangements depend on individual circumstances. If you’re uncertain about how your assets might be divided or how your housing needs will be met, it’s important to seek personalised family law legal advice to understand your options.

Contact us today to schedule a FREE 10 minute divorce consultation and get tailored advice on your specific circumstances.

By partnering with a skilled family lawyer, you can confidently navigate the complexities of asset division and financial settlements, safeguarding your financial future.