Below is some useful information on Dividing Finances on Divorce, For other useful information see our FAQ page here https://nationalfamilymediationservice.co.uk/faqs/
When resolving financial matters during a divorce, the Family Court does not automatically split assets 50/50. Instead, the court follows a statutory process, prioritizing the needs of the family before applying principles of fairness and equal sharing.
For divorce and financial remedy applications in Aberystwyth, the case will be heard at the local or regional Family Court, such as the Aberystwyth Justice Centre or the designated regional centre (often Swansea or Carmarthen, depending on complexity).
Before any other factor is considered, the court’s priority is to ensure the welfare of any children and meet the reasonable financial needs of both spouses.
If the marital assets are limited, the court will first use those assets to ensure both parties and the children have adequate housing and income (the “needs” principle). Only if there are surplus assets after needs are met will the court move on to the “sharing” principle.
The Section 25 Checklist
The court is legally obliged to consider all the factors listed in Section 25 of the Matrimonial Causes Act 1973. These factors guide the judge toward a fair division:
| Factor | Description |
|---|---|
| Welfare of Children | The welfare of any child of the family under the age of 18 is the court’s first consideration. This often dictates who retains the matrimonial home. |
| Financial Resources | The current and future income, earning capacity, property, and other financial resources that each party has or is likely to have. This includes pensions. |
| Financial Needs | The financial needs, obligations, and responsibilities of each party now and in the foreseeable future, particularly housing costs and living expenses. |
| Standard of Living | The standard of living enjoyed by the family before the breakdown of the marriage. |
| Age and Duration | The age of each party and the duration of the marriage. Longer marriages often result in a closer-to-equal division. |
| Disability | Any physical or mental disability of either party. |
| Contributions | The contributions each party has made, or is likely to make, to the welfare of the family, including financial contributions and non-financial contributions (such as caring for the home and children). |
| Loss of Benefits | The value of any benefit (such as pension rights) which a party will lose due to the divorce. |
| Conduct | The conduct of each party (only relevant in very rare cases where it would be “inequitable to disregard”). |
In addition to the Section 25 Checklist, three principles derived from case law are used to structure the division of assets:
As noted, the first task is to meet the reasonable needs of the family, particularly those with custody of the children. This is the bedrock of the entire financial order.
The starting point in any case involving matrimonial property (assets accrued during the marriage) is that of equal sharing (50/50).
This principle is only applied in highly unusual cases where one spouse has clearly and substantially disadvantaged their own career for the benefit of the family (e.g., giving up a high-earning profession) and the other spouse has significantly benefite
Local Court Information for Aberystwyth;
Primary Court – Aberystwyth Justice Centre
Address; Bow Street, Aberystwyth, SY24 5AJ
The Process; Financial applications are typically commenced using Form D500 (for consent orders) or Form D501 (for contested applications)
The Requirement; Both parties must disclose their financial positions fully using Form E at the outset of the contested process.
The court process is rigorous because the judge must ensure the final financial arrangement is fair, reasonable, and meets the needs of the entire family.
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Call the Team today on 03300 101 367 or fill out a contact form here.
Our Aberystwyth Mediation Hub Strictly by Appointment Only. Location is not staffed.
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National Family Mediation Service – Dividing Finances on Divorce in Aberystwyth