How to Protect Your Assets After Divorce

Divorce can be both an emotional and financial minefield. Not only do you have to worry about working through a lot of logistical problems following your divorce, but you also have to navigate the financial aspect of divorce and protect your assets.

There is a common misconception that divorce severs all financial ties between a divorced couple, but in the UK, there is no limit on financial claims following divorce. A couple may be divorced for 5 years, and a claim may still be made in certain circumstances.

At Brown Turner Ross, we have helped countless individuals with divorce proceedings and the protection of assets after separation. In this guide, we will outline exactly how you can protect your assets after divorce.

Keep reading to find out more.

How Long After Divorce Can You Claim Assets in the UK?

If a legally binding financial order (Consent Order) was not obtained to sever ties, there is no fixed limit on claiming assets after a divorce in the UK. This means that an ex-spouse can claim assets even decades after a divorce, so it is essential for a Consent Order to be implemented as soon as your divorce is settled to protect you in the future.

How Are Assets Split After Divorce?

Many people believe that assets are always divided 50/50 after a divorce. While this can be true for some couples, asset division typically aims for fairness. This means taking into account the needs of both parties and prioritising any children involved.

Key Factors When Splitting Assets

When splitting assets, the courts will look at the following factors before making a decision.

Needs of Dependents

The first priority when splitting assets after divorce is meeting the needs of any dependents/children of both parties, especially if the children are under 18. The main goal is to ensure the welfare of the children, which can have an impact on how assets such as property and finances are split.

The parent who has primary care of the children may receive a larger share of assets or may be granted the family home to meet the needs of themselves and the children.

Length of Marriage

A factor that a lot of couples forget to consider when splitting assets after a divorce is the length of the marriage. If you have been married for a long time, often more than a decade, the courts will be more in favour of a 50/50 split, as it is likely that a lot of the assets that you have accumulated have been through shared efforts.

However, if you have a shorter marriage, usually under 5 years, any unequal contributions by either of the Parties during the marriage may be more focused.

Financial Contribution

Though courts will always prioritise fairness in favour of financial equality, in short marriages, higher financial input can have an impact on the division of assets.

It can be difficult to prove that one party’s contribution was so great that it warrants an uneven split, but there are cases where it has occurred.

In cases where you believe you have made a bigger financial contribution and deserve a bigger part of the assets, we would recommend working with a solicitor who can help you gather the necessary information to help you prove you have paid more into the marriage. Discover more about our divorce asset division services for tailored help.

Age and Health

Age and health can also have a role to play in how assets are divided after divorce. An older or physically unwell person may find it more difficult to work and rebuild their assets. If one party is older and closer to retirement age, they may be eligible for a bigger percentage of the assets, as it will be more difficult for them to work back the money they may have lost after the divorce.

Which Assets Cannot be Split in a Divorce?

There are a number of assets that will be excluded from a split after divorce. These assets are generally not needed to meet the spouse’s financial needs, but they may be subject to a split under very specific, rare circumstances.

Some assets that cannot be split after a divorce include:

Pre-marital Assets

Pre-marital assets refer to any assets obtained before the marriage. This could include property, savings, or investments owned before the marriage, which tend to be excluded from the division.

Gifts

If one spouse receives a gift, whether a birthday present or just a nice gift from a friend, it is considered a personal item and will not be included in the division of assets.

Inheritance

The inheritance of any property or money received by one party, as long as it has not become mingled in marital finances, e.g., with a shared investment, is usually not included in the division of any assets, however it is a resource available to one party and the Court can have regard to it when determining the overall split. 

Non-matrimonial Assets

Non-matrimonial assets refer to any property, money, or investments made after divorce. Though it is true that an ex-partner can make a claim decades after a divorce, they cannot claim assets that were earned after the marriage ended.

How to Protect Your Assets Before Marriage

If you are worried about losing your assets due to divorce, the best preliminary step you can take is signing a prenuptial agreement. With a prenuptial agreement, you can legally define ownership, protect your pre-marital wealth, and prevent these assets from being automatically divided if divorce arises.

Another method that some people entering into marriage use is keeping trusts. This involves placing assets into a trust to ensure they remain under independent management and are accessible only to specific beneficiaries.

Learn about our legal guidance for asset protection to start protecting early.

The Process of Splitting Assets After Divorce

Once a divorce is complete, you can then begin the process of splitting assets. This process usually looks like:

Full Financial Disclosure

Before assets can be divided, both parties must disclose all assets they own with honesty. Assets may include:

• Bank accounts
• Property
• Pensions
• Investments
• Savings

Negotiation/Mediation

Where possible, when it comes to the division of assets, your solicitor will encourage you to avoid court as much as you can. Court battles can be incredibly costly, and unless there is no way for both parties to reach an agreement, their solicitors will recommend mediation to find the right solution for them.

Any agreements reached regarding finances or property will be documented in a Memorandum of Understanding, which will then be converted into a legally binding consent order for a judge to approve.

Court Decision

If you have been unable to reach a settlement through mediation, the case will advance to a court trial. During this process, a judge will examine the evidence and consider both parties’ arguments before making a decision.

The judge will determine the fair division of assets, which may include properties, savings, and other valuables, and then issue a binding financial order that formalises the distribution.

Consent Order

To ensure any agreement between the parties is legally binding, it will be drafted as a consent order. This will outline all points agreed upon in mediation and must be signed by both parties and approved by the court before it can be considered legally binding.

Consent Orders are legally binding and can be enforced by the court to enforce the terms of the divorce.