When you are in the midst of a relationship breakdown the largest shared asset that you have is likely to be your home. However, this is probably not the only shared property that you and your spouse will have, and that’s before you consider the car, the items of furniture, the electrical equipment, the clothing, ornaments and items of sentimental value, amongst others.
It is important to remember that couples have an absolute right to agree to divide their assets amicably and without input from lawyers or the court. It is also possible for one person to state that they do not want to receive anything from their former spouse. (Billie Piper famously received nothing from her far wealthier partner Chris Evans.)
The Family Home
No two divorces are the same, so who gets the family home will depend on your individual circumstances. Generally, thought, the way in which the matter of the family home is dealt with depends on your relationship with your partner. If you trust one another, you can get together to discuss what to do openly and honestly. It may be that you can afford for one of you to stay in the house whilst the other finds alternative accommodation, or that you agree to sell the house and split the proceeds in order to go your separate ways.
If the Property is in One Person’s Name
In the event that the property you own is in your spouse or partner’s name only, you should register a ‘caution’ against the property, either under section 4 of the Matrimonial Homes Act, or a ‘Class F Land Charge’ with the land registry. Your estranged spouse will not be able to sell the property, or raise finance against it, without your consent. If they do, this is fraud.
If You Are Leaving the Family Home
In the event that you are leaving the family home, you should take with you any items of particular importance to you. You don’t yet know how relations between you and your spouse will be in a few weeks or months time, so this may be the only chance you get to claim these possessions.
Other Assets
Recent case law suggests that couples are more likely to get half of the proceeds of the divorce than before. Previously, marital assets were divided on the basis of what each party had contributed to the marriage. (For ‘non-marital assets and their definition, see the relevant article elsewhere on this site.) In general, the person who has care of the children will get a bigger slice of the shared assets.
The Best Way to Divide Assets
When it comes to having to apportion ownership of your marital assets, there are some fundamental things that you can do to ensure that it goes smoothly:
- make sure you have as much information on your joint assets as you can. This means accumulating copies of receipts, agreements, and other proof of ownership documents. You would be surprised how ‘forgetful’ former spouses become when faced with splitting ownership of assets.
- make a list of everything you and your spouse own, and leave space for two further columns. In the next column, give an estimation of value. In the last column, put whether it is yours, your spouse’s, or shared.
- Have a list of all your income and outgoings, to demonstrate any shortfall. The lower your income is, and the higher your outgoings, the greater your share of the proportion of assets.
- if one person is going to remain in the home, you need to ensure that you have an up to date valuation of the property. It is highly advisable to get three separate valuations from estate agents and use the average from those amounts.
- It may help to write a chronology of your marriage and a timeline to show what you were doing at each stage, particularly if you haven’t worked during the marriage or sacrificed your career to bring up children. Recording events such as part time work, having children, and moving home all show your non-financial contributions to the marriage.
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