Financial settlements on divorce

There is no formula. The court has a wide discretion, applied to a list of factors, and outcomes on similar facts can differ. What makes the difference is how the case is presented.

How the court actually approaches it

Needs come first. In the majority of cases there is not enough to go round, and the outcome is determined by what each party — and the children — need to house and support themselves. Everything else is secondary.

Sharing applies to matrimonial property. Where there is more than enough to meet needs, the starting point is that property built up during the marriage is shared, usually equally. Non-matrimonial property — assets brought into the marriage, inherited, or acquired after separation — may be treated differently, though this becomes harder to sustain the longer the marriage and the more the asset was mixed with the rest.

Compensation arises rarely, where one party gave up a career for the marriage and the other’s earning capacity was built on that.

The factors the court weighs include the parties’ income and resources, their needs and obligations, the standard of living during the marriage, their ages and the length of the marriage, contributions including as homemaker, and any disability. Conduct is rarely relevant unless it would be inequitable to disregard it — a high bar that most people expect to clear and almost nobody does.

Pensions — the asset people give away

The most consistently undervalued asset in English divorce.

A pension is frequently worth more than the house, and pension value is not intuitive: the cash equivalent value is not a reliable guide to what a pension will actually produce in retirement, and a defined benefit scheme can be worth a multiple of the figure on the statement.

Three ways to deal with it: a pension sharing order, which splits the fund and gives each party their own; offsetting, where one keeps the pension and the other takes more of another asset; and attachment, now rarely used.

Offsetting is where people lose most. Trading a pension for equity in the house sounds like an even exchange and frequently is not — the two are not comparable without expert input, and the party taking the house often does much worse than they realise. In any case where pensions are significant, a pension on divorce expert report is usually money well spent.

The process

Disclosure. Both parties give full and frank disclosure of everything they own, owe and earn. It is a duty, not a courtesy, and it continues throughout.

Negotiation or mediation, which resolves most cases.

Proceedings where it does not — a first appointment, a financial dispute resolution hearing at which a judge gives an indication, and a final hearing if it still has not settled. The great majority settle at or before the FDR.

The order, which must be approved by the court even where everything is agreed.

The law is under review

Financial provision on divorce is being reconsidered for the first time in decades.

Following the Law Commission’s 2024 scoping report, the government consulted between 5 June and 14 August 2026. Its preferred model — “codification-plus” — would put the settled principles of needs and sharing into statute, with specific reforms alongside, including qualifying nuptial agreements that would be binding. The consultation has closed and a response is awaited.

Nothing has changed yet. But if you are at the start of a matter, or considering an agreement, it is worth knowing that the framework may look different within a few years.

What we do

Establish what there is — which is frequently the hardest part, and not always straightforward. Value what needs valuing, and instruct the right experts. Work out what a court would be likely to do, which is the only sensible basis for negotiating. Then negotiate, mediate or litigate, and get the order approved.

What it costs

£400 per hour plus VAT, with a stage-by-stage estimate.

Financial remedy proceedings are difficult to fix as a single fee because much of the cost is driven by whether the other side discloses properly and engages. We fix discrete stages — an initial advice and strategy note, a round of disclosure, preparation for an FDR — and tell you at the outset which parts can be fixed and which cannot.

A consent order, where everything is agreed, is fixed-fee.

Questions

Questions people ask us

Is everything split 50/50?

No. Equal sharing is a starting point for matrimonial property where there is more than enough to meet needs. In most cases needs determine the outcome and the division is not equal.

What about assets I had before the marriage?

They may be treated as non-matrimonial and less readily shared — but that argument weakens with a long marriage, where the asset has been mixed with others, or where needs cannot otherwise be met.

Does an inheritance count?

Potentially not as matrimonial property, particularly if received late and kept separate. But it is a resource, and where needs require it, it can be used.

What happens to the pension?

It is a matrimonial asset and often the largest one. It can be shared by order or offset against other assets. Offsetting is where people most often lose value, because pensions and property are not comparable without expert input.

Does it matter that they had an affair?

Almost never. Conduct is relevant only where it would be inequitable to disregard it, which is a high threshold that ordinary marital misconduct does not meet.

How long does it take?

An agreed settlement and consent order, a few months. Contested proceedings commonly a year or more, depending on disclosure and court listing.

The hub

Family law →

Also in this area

Divorce: the process, and the part that actually matters →

Also in this area

Divorce when you own a business →

Start with a conversation

A free 20-minute call. Tell us what has happened and we will tell you whether we can help, what it would involve and roughly what it would cost.

No charge

A free 20-minute call

Tell us what has happened and we will tell you whether we can help, what it would involve and roughly what it would cost. No advice is given on this call and there is no charge for it.

£350 plus VAT

A paid strategy session

One hour with a partner, followed by a written summary of your position and options. For people who want proper advice without instructing a firm yet. Credited in full against your fees if you go on to instruct us.

Or reach us directly

0207 112 8818

WhatsApp +44 7476 045967

[email protected]

We answer enquiries the same working day.