When going through a divorce, one of the most challenging aspects for a couple is deciding how their marital assets should be divided. Many people assume that a 50/50 split is the default rule, but that’s not always the case. The division of assets is based on what is fair and reasonable in each case, and no fixed formula dictates how assets should be divided. In this blog post, we will explore the factors involved in dividing assets during a divorce and debunk the misconception of a strict 50/50 split.
The Complex Side of Asset Division
The first step in asset division is disclosing each party’s financial position to establish a complete picture of the marital finances. From there, several factors come into play to determine if one party is entitled to more than 50% of the marital assets. These factors include the needs of each party in terms of housing and income, available resources, the standard of living during the marriage, the duration of the marriage, any physical or mental disabilities, contributions to the family, and the origin of the assets (such as inheritance or ownership before marriage).
Considering Individual Circumstances
Divorce settlements are unique to each case, and there is no one-size-fits-all approach. The law recognises that contributions to the family go beyond financial contributions and encompass various forms of support, such as being the primary caregiver for the children. The value placed on caring for the children is considered equivalent to providing the main source of income. Additionally, the length of the marriage and the presence of children can significantly impact the division of assets.
The Role of “Needs”
One of the main reasons for an uneven division of assets is based on the concept of “need.” For instance, if one party is the primary caregiver of the couple’s young children, they will likely require more in terms of housing and income than the other party. Their ability to earn and obtain a mortgage may be limited due to their caregiving responsibilities. In such cases, a greater portion of the marital assets may be awarded to the party with greater needs.
Considering Other Factors
In certain situations, such as short marriages with no children, it may not be fair or reasonable to divide pre-marital assets in the final settlement. The court takes into account the specific circumstances of each case to ensure a fair outcome.
Seeking Professional Guidance
Navigating asset division during a divorce can be complex and emotionally challenging. Our expert family law team here at Regan Peggs will provide guidance and support tailored to your situation. We offer a range of family law services and are dedicated to helping you achieve the best possible outcome whatever your situation.
Contrary to popular belief, a 50/50 split is not the default rule in asset division during a divorce. Instead, the aim is to divide assets in a manner that is fair and reasonable based on the unique circumstances of each case. Factors such as individual needs, contributions, duration of the marriage, and the origin of assets all play a role in determining the division. By seeking professional advice and guidance, you can navigate the complexities of asset division and work towards a resolution that addresses your specific needs. For more information on our family law services, contact us and we will be happy to answer any questions you may have.