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What factors does the court consider when dividing finances on divorce?

The factors set out in the Matrimonial Causes Act 1973 that courts in England and Wales apply when deciding how to divide assets and income on divorce.

When a court decides how to divide finances on divorce, it does not start with a rule that everything is split equally. Instead, it is required by law to consider a specific list of factors set out in section 25 of the Matrimonial Causes Act 1973. The court's first consideration is always the welfare of any children of the family. Beyond that, it must weigh all of the following factors together, not in isolation, and decide what a fair outcome looks like given the full picture.

What are the section 25 factors?

Under section 25 of the Matrimonial Causes Act 1973, the court must have regard to all the circumstances of the case, and in particular:

  1. The income, earning capacity, property, and other financial resources which each party has or is likely to have in the foreseeable future, including anything they could reasonably be expected to take steps to acquire.
  2. The financial needs, obligations, and responsibilities which each party has or is likely to have in the foreseeable future.
  3. The standard of living enjoyed by the family before the breakdown of the marriage.
  4. The age of each party and the duration of the marriage.
  5. Any physical or mental disability of either party.
  6. The contributions which each party has made or is likely to make in the foreseeable future to the welfare of the family, including any contribution by looking after the home or caring for the family.
  7. The conduct of each party, if that conduct is such that it would be inequitable to disregard it.
  8. The value of any benefit which, by reason of the dissolution of the marriage, a party will lose the chance of acquiring, for example pension rights.

What does the court prioritise in practice?

Although all eight factors must be considered, courts in England and Wales generally give particular weight to three in most cases:

  1. The needs of any children and the parent who will be their primary carer, particularly the housing needs of that parent and the children.
  2. The financial needs of each party going forward, particularly where there's a significant disparity in earning capacity or where one party's financial independence has been affected by the marriage.
  3. The contributions of each party, including non-financial contributions such as raising children and managing the home, which the courts have consistently treated as equal in importance to financial contributions.

The starting point in long marriages where assets exceed the parties' needs is often equal division, though courts can and do depart from equality where specific circumstances justify it.

Does conduct affect the financial outcome?

Conduct is listed as a factor, but courts set a high threshold for it to influence the financial outcome. The test is whether ignoring the conduct would be inequitable, which is a demanding standard. In practice, conduct affects the financial settlement in a relatively small number of cases. Behaviour that might feel significant in the context of the marriage, infidelity for example, generally doesn't affect the financial outcome. Conduct that has a direct financial impact, such as deliberate dissipation of assets or significant financial misconduct, is more likely to be taken into account.

What is the role of the length of the marriage?

Duration of the marriage is explicitly listed as a factor. In shorter marriages, particularly those without children, courts are generally less inclined to equalise assets, particularly where one party brought significantly more into the marriage. In long marriages, the marriage is more likely to be treated as a full economic partnership, and equality of outcome is more commonly the starting point.

Are inherited assets treated differently?

Inherited assets are not automatically excluded from the financial settlement, but courts often treat them differently from assets accumulated during the marriage, particularly where the inheritance hasn't been substantially mixed with marital assets over time. The longer the marriage and the more the inherited assets have been absorbed into the family's financial life, the more likely they are to be treated as part of the matrimonial pool.

Does it matter who was more financially successful?

Financial contribution during the marriage is one factor, but the courts have consistently held that it is not a more important contribution than non-financial contributions such as raising children or supporting a partner's career. The leading case of White v White [2000] UKHL 54 made clear that the courts should not discriminate between money-earning and homemaking roles when assessing contributions.

Going through financial proceedings without a solicitor is difficult, particularly understanding how these factors apply to your own situation. Access to Justice is built for people in exactly this position, it helps you understand the framework the court uses and what it might mean for the specific circumstances of your case. Try it free.

Frequently asked questions

Does England and Wales use a 50/50 split by default?

No. There is no automatic 50/50 rule. The starting point the courts have developed through case law in long marriages with assets exceeding the parties' needs is often equal division, but this is a starting point, not a rule. The section 25 factors are applied to determine whether equality, or some other outcome, best reflects the full picture.

Do short marriages always result in assets going back to whoever brought them in?

Not automatically, but duration is a factor and courts do generally give more weight to pre-marital contributions in shorter marriages. Whether and how much assets are retained by the party who brought them in depends on all the circumstances, including what the parties' needs are and what happened during the marriage.

Is a spouse entitled to half the pension?

There is no automatic entitlement to half of any asset. Pensions are considered as part of the overall financial picture alongside all other assets. Whether and in what proportion a pension is shared depends on all of the section 25 factors applied to the specific case.

Does it matter why the marriage broke down?

Generally no. The reasons for the breakdown of the marriage don't affect the financial outcome unless the conduct in question meets the high threshold set out in section 25, which in most cases it does not. Something like infidelity generally makes no difference; conduct with a direct financial impact, such as deliberately dissipating assets, is more likely to be taken into account.

What if my spouse earned all the money during the marriage?

The courts treat financial and non-financial contributions as equally important. If one party's focus was on raising children or managing the home while the other focused on earning, the court considers both contributions when assessing a fair outcome. Significantly unequal earning during the marriage doesn't automatically justify an unequal financial settlement.

What happens if my spouse and I agree on a split that doesn't follow these factors?

When approving a consent order, the court reviews whether the agreed terms are fair. The court is not required to approve an agreement it considers manifestly unfair, even if both parties have agreed to it. In practice, courts approve most agreed outcomes without detailed scrutiny, but they retain the power to refuse.

This article provides legal information about the financial remedy process in England and Wales. It does not constitute legal advice. For advice about your specific situation, speak to a qualified solicitor.

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