Each marriage and therefore divorce is different from each other. There are no rigid rules regarding splitting assets on divorce. When dividing assets, numerous factors will be considered by the Court. These factors are known as Section 25 factors, under section 25 of the Matrimonial Causes Act 1973).
These factors include the following:
- Income and earning capacity, property and other financial resources that each party has or is likely to have in the foreseeable future;
- The financial needs, obligations and responsibilities/liabilities, which each party has or is likely to have in the foreseeable future;
- The standard of living enjoyed by the parties during the marriage;
- The ages of each party and the duration of the marriage itself;
- Any physical or mental disability of either party;
- The contributions that each party has made or is likely to make in the future to the welfare of the family unit;
- The conduct of each party, if that conduct is such that it would be unfair to disregard in the opinion of the Court;
- The value to each party of any benefit that one party would lose because of the divorce.
Before the above factors are considered, the first consideration of the Court will be the welfare of any children of the family. This may not be seen as the most important factor, however, it is the first one that any Court will consider.
The Court will also consider two other principles, which are as follows:
- Sharing: the Court considers marriages as a partnership and the whatever is gained through that partnership should be shared between the parties accordingly.
- Compensation: the Court will consider the way in which financial affairs were managed throughout the marriage.
You should remember that the parties may have pension provision and investments in their own name. depending on the length of the marriage, these will be viewed as marital assets.
In respect of the family home, the Court will take into account any need of any minor children of the family. This is to enable the minor children to have suitable accommodation as well as the parent who will reside with them. However, if your family home exceeds the needs of the resident parent and that of the children, a sale of the property may be considered. There are several options which are available when it comes to the family home. This includes selling it and splitting the proceeds, transferring the title to one party; or keeping the family home until a specified event such as a minor child reaching 18 years of age or completing full-time education.
Divorce is also likely to have an effect on any business of any party. A business is considered an asset. In coming to an agreement amongst the parties or in reaching a decision, the Court will consider the value of the business as well as all the other family assets.
