Financial Settlements in UK Divorce: What You Need to Know
How financial settlements work in divorce proceedings in England and Wales — Form E disclosure, the section 25 factors, pension sharing, consent orders, and when to get independent advice.
Financial Settlements in UK Divorce: What You Need to Know
Dividing assets when a marriage ends is often the most contentious and expensive part of divorce proceedings.
Why You Need a Financial Order
Without a court-approved financial order, either party retains the right to make financial claims against the other, potentially for years after the divorce is finalised. A consent order, approved by the court, provides a clean break.
What the Court Considers
When deciding how to divide assets, the court applies section 25 of the Matrimonial Causes Act 1973. The welfare of any children is the first consideration. Beyond that, the court weighs the income, earning capacity, and financial resources of each party; financial needs and obligations; the standard of living enjoyed during the marriage; the age of each party and the duration of the marriage; any disability; each party's contributions; conduct in limited circumstances; and the value of any benefit lost on divorce including pensions.
Equal Division is Not Automatic
There is a starting point of equality, but the court has broad discretion to depart from it where the circumstances justify doing so.
Pension Division
Pensions are often the most valuable asset in a divorce after the family home, yet they are frequently undervalued or ignored in negotiations.
This article provides general legal information only. It is not formal legal advice and does not create a solicitor-client or barrister-client relationship. If you need advice specific to your circumstances, please consult a qualified legal professional.
Need Professional Legal Help?
This guide is for general information only. For advice tailored to your situation, instruct a Direct Access barrister.