“I’m entitled to half of everything” – The Division of Family Finances on Divorce

When a marriage comes to an end, sorting out the finances is often one of the most difficult parts. It’s not just about dividing money and property – it’s about making sure both people can move forward, especially when children are involved.

While many assume that everything is split 50/50, that’s just a starting point. The reality is more nuanced. Every case is different, and the outcome depends on a range of legal and practical factors.

The law that guides this process is the Matrimonial Causes Act 1973, specifically section 25. The court’s top priority is the welfare of any children under 18. Any financial settlement must ensure their needs are properly met.

The Law – Section 25 Factors

When deciding how to divide assets, the court looks at several key factors:

• What each person owns and earns now, and what they’re likely to have in the future.
• Their financial needs and responsibilities.
• The lifestyle they had during the marriage.
• Their ages and how long they were married.
• Any health issues that might affect earning capacity or financial needs.
• Contributions made by each person – whether through income, caring for children, or running the household.
• Any behaviour that’s so serious it would be unfair to ignore.

These factors help the court reach a fair and balanced decision based on the specific circumstances.

Matrimonial vs Non-Matrimonial Assets

The court usually focuses on matrimonial assets – things acquired during the marriage for the benefit of both spouses. This includes the family home, savings, pensions, and investments.

Sometimes, assets brought into the marriage – like an inheritance or property owned before the marriage – are considered non-matrimonial. These might be excluded from the settlement, especially if they were kept separate. But if the matrimonial assets aren’t enough to meet both parties’ needs, the court can include non-matrimonial assets to make sure everyone is financially secure.

How Do the Courts Decide on Division?

The process starts with both parties providing full financial disclosure. That means listing everything they own, earn, and owe – whether it’s considered matrimonial or not.
If splitting everything equally meets both parties’ needs, the court may go with that. But adjustments are often made to reflect:
• The needs of any children.
• One person’s financial dependence on the other.
• Differences in pensions or future earning potential.

There are a lot of myths about what people are “entitled” to in a divorce. Let’s look at a few of the most common ones:

“I’m entitled to half of everything, no matter how long we were married.”
Not necessarily. The length of the marriage matters. In shorter marriages, especially where finances were kept separate, the court may not divide everything equally. In longer marriages, a 50/50 split is more likely—but only if it meets both parties’ needs.

“I can claim half of my ex’s future inheritance.”
Generally, inheritance received after separation isn’t considered part of the matrimonial pot. Even during the marriage, inherited assets may be treated as non-matrimonial – unless they were used for the benefit of both spouses (e.g. buying the family home). Future inheritance is speculative and rarely included.

“The house is in my name, so my ex can’t claim it.”
Ownership doesn’t always determine entitlement. If the house was the family home, it’s likely to be considered a matrimonial asset – even if only one person’s name is on the title. The court looks at how the property was used, not just who owns it.

“My pension is safe because I contributed before we got married.”
Pensions are often one of the biggest assets in a divorce. Contributions made before the marriage may be considered non-matrimonial, but if the pension is needed to meet the other party’s needs, it can still be divided. The court takes a practical approach based on fairness.

These myths can lead to unrealistic expectations and unnecessary conflict. That’s why it’s so important to get proper legal advice early on.

Alternatives to Court

Going to court isn’t the only option – and it’s often not the best one. There are several ways to reach a fair agreement without litigation:

• Mediation: A neutral third party helps both sides find common ground.
• Collaborative law: Each person has a solicitor, and everyone works together to reach a solution.
• Arbitration: A private decision-maker (like a judge) makes a binding ruling.
• Solicitor-assisted negotiation: Solicitors help guide discussions and draft agreements.

These approaches are usually quicker, less expensive, and less stressful than going to court. They also give both parties more control over the outcome.

Legal Advice and Consent Orders

Getting legal advice early can make a big difference. It helps you understand your rights, avoid costly mistakes, and focus on what’s realistic.

Once you’ve reached an agreement, it’s vital to formalise it with a financial consent order approved by the court. Without this, financial claims can remain open – even after the divorce is finalised.

Moving Forward with Confidence

Financial settlement on divorce can feel overwhelming, especially when there’s so much misinformation out there. It’s easy to assume you’re entitled to half of everything, or that assets like pensions and property are automatically protected—but the reality is more complex. Each case is different, and what’s fair depends on your individual circumstances.

That’s why early legal advice is so important. It helps you understand your rights, avoid costly assumptions, and make informed decisions about your future.

If you’re going through a separation or simply want to understand your position better, our experienced team is here to help. We offer clear, practical guidance to support you through the process and help you reach a fair financial settlement.

Get in touch with us today to speak to one of our family law specialists.