How Are Belongings & Money Divided Up During a Divorce?

One of the biggest concerns when it comes to divorce is comprehending how finances, property and personal belongings will be divided. With divorce enquiries often rising around the festive period, we recognise that many couple find themselves searching for clarity before making this lifechanging decision.

This guide explains how belongings and money are divided up during a divorce, what principles the courts follow, and what you should expect during the process. At Caversham Solicitors, we understand that every situation is unique but providing the general rules will help you prepare and make confident, informed choices.

What Are “Marital Assets”?

First and foremost, it’s important to define what marital assets and property are. Typically, these are goods that have been built up during the marriage, regardless of who paid for them.

This could include money in joint or individual accounts, pensions and savings, the family home, vehicles and other valuable belongings. Non-marital assets can include inheritance, gifts made to one person, or property owned before the marriage.

UK courts can still include non-marital assets in the financial settlement is required to achieve fairness, especially if the marriage was long or if children are involved. Ultimately, the law focuses on what provides a fair outcome, rather than a rigid formula.

How Courts Decide a Fair Outcome

The Matrimonial Causes Act 1973 states the factors used to decide a fair division of assets. These factors include:

• Length of the marriage
• Financial contributions (income, savings, property)
• Non-financial contributions (raising children, homemaking)
• Each person’s income
• Age, health, and future financial needs
• Standard of living during the marriage
• Childcare responsibilities

Although a 50/50 split can happen, it is not guaranteed and, usually, the needs of any children take priority followed by ensuring both spouses can move forward with financial stability.

How Belongings & Money Are Divided Up During a Divorce

Family Home

This is probably the biggest, most emotionally complex asset and there are many outcomes that can result from divorce. This could include selling the property and splitting the proceeds by an agreed percentage, one spouse buying the other out, or transferring ownership is one spouse needs it more for childcare reasons.

Courts typically prioritise housing needs, especially where young children are involved. So much so that a deferred sale is another option where the home is kept until the children reach adulthood.

Savings, Bank Accounts & Investments

As mentioned above, joint or individual savings and bank accounts are usually considered marital assets if accumulated during the marriage. This includes cash savings, ISAs, stocks and shares, bonds, cryptocurrency holdings and other investment products. Full financial disclosure is legally required before any settlement can be reached.

Pensions

Following on from above, pensions are also considered as a marital asset and are often among the most significant assets in a marriage. To such an extent that even if only one spouse has a pension, it may be shared among them both.

Dividing a pension can look like:

• A pension sharing order (splitting the pension pot)
• Pension earmarking (future payments assigned to the other spouse)
• Offsetting (e.g., one spouse gets more property equity instead of pension rights)

It’s important to remember that obtaining a Cash Equivalent Transfer Value (CETV) is essential to ensure accurate valuations.

Debts

Just like savings, debts accumulated during the marriage need to be addressed too. Debts such as mortgages, loans, credit cards, tax liabilities and finance agreements can be in one person’s name yet still be considered as joint responsibility if they were incurred for family benefit. It’s important to provide full transparency to ensure a fair settlement for both parties.

Personal & Valuable Belongings

Most couples manage to divide personal items themselves without court involvement; however, these general principles apply if needed. Examples of marital belongings include furniture, household goods, vehicles, jewellery, electronics or other shared valuables. Courts usually avoid item-by-item arbitration unless absolutely necessary, due to the time and cost involved.

Do Prenups & Postnups Matter?

Prenuptial and postnuptial agreements are not automatically legally binding in the UK, but courts increasingly respect them if they are fair, signed voluntarily, made with full financial disclosure, and signed with independent legal advice. If these conditions are met, the agreement may carry significant weight.

Common Misunderstandings About Asset Division

A few myths often cause confusion around asset division, so our experts are here to clear them up for you.

“Everything is always split 50/50”

A 50/50 division is typically a good starting point, but it’s not a rule. As mentioned above, the court’s main concern is fairness, not perfect equality. For example, if one person has a significantly lower income or will be caring for children most of the time, a different split may be needed to meet their future needs.

“If the account is in my name, it’s mine”

Ownership on paper doesn’t necessarily reflect ownership in divorce. If something was acquired during the marriage, even if it’s only in one person’s name, it may still be considered a marital asset and therefore divided.

“We’ll need to go to court”

Many couples agree settlements through negotiation, legal advice or discussion with solicitors, with court as a last resort. If an agreement can’t be reached, this is usually when it’s taken to court.

Practical Tips Before Starting the Process

To help you feel as prepared as possible before you start the divorce process, here are some tips for you to follow:

• Gather all your financial documents together
• Make a full list of assets and debts
• Always be transparent; hiding assets is illegal and can invalidate settlements
• Seek legal support before agreeing to anything

Understanding how belongings and money are divided during a divorce can give you clarity and confidence at a time when life feels uncertain. If you’re looking for tailored guidance for your situation, expert legal support from Caversham Solicitors can make all the difference. Contact us today and one of our family solicitors will be more than happy to help.