Division of Property on Divorce Under UK Law
In England and Wales, the division of property on divorce is governed by Section 25 of the Matrimonial Causes Act 1973, which directs courts to achieve a fair and equitable financial settlement, rather than applying a strict 50/50 split.
Key Principles in UK Property Division
- Needs – The court prioritises meeting the financial requirements of both parties and any dependent children, particularly regarding housing, living costs, education, and future stability.
- Compensation – Where one spouse has experienced a financial disadvantage (for example, staying at home to raise children), they may receive compensation in the settlement.
- Sharing – Marriage is treated as a partnership, with assets built during the union generally shared. However, this principle can be adjusted to reflect fairness based on individual circumstances.
Matrimonial vs Non-Matrimonial Assets
- Matrimonial assets are those acquired during the marriage and typically form the primary pool for division.
- Assets owned before marriage, or received individually through inheritance or gifts, are often non-matrimonial and may be excluded.
- The recent Supreme Court case Standish v Standish [2025] UKSC 26 clarified that non-matrimonial assets remain excluded unless unequivocally treated as shared during the marriage.
Process of Property Division
- Both parties must make full and frank financial disclosure.
- Courts assess all assets, including pensions, savings, property, and business interests.
- Financial settlements may be agreed via negotiation or mediation, formalised with a consent order, or imposed by the court through a financial remedy order.
Non-Financial Contributions
Courts recognise non-financial contributions—such as childcare, homemaking and household management as factors when considering compensation and needs, even if the contributing spouse does not hold legal title to assets.