Are you entitled to a fair share of the assets on divorce?
It’s not unusual that when there are children in the marriage that the wife earns less than the husband. She may be a stay at home mum or earn a lower income simply because she works fewer hours in order to be able to cover childcare.
It’s also quite usual that if your family budget doesn’t need the additional money that the wife doesn’t work outside the home but instead takes responsibility for looking after the house.
If this is you, are you concerned that you may be penalised financially following divorce?
Frequently women believe that if you have not contributed financially to the marriage that you will be entitled to a lower share of the joint assets if you divorce.
You’ll be glad to hear this is infact incorrect. The court will base the settlement on the financial needs of both parties, especially the one looking after the children.
And there are a number of important landmark cases covering this.
In the case of Mr & Mrs White the judge stated there could be no discrimination between husband and wife and their different roles. He confirmed the non working wife contributes as much as the working husband.
In the case of Mr & Mrs MacFarlane the judge went a step further and ruled that Mrs MacFarlane was entitled to compensation for giving up her career to bring up the children.
As a result of case law, equal weight is given to both domestic and financial contributions to the marriage. It doesn’t matter which party earned the money and built up the assets.
Do remember as well, of course, that if you are the female breadwinner do not assume that all the assets of the marriage are yours.
If it’s a short marriage, typically you go will leave the marriage with what you bring in. But in a longer marriage all assets (and infact all debt) are pooled and the aim is to divide equally, as much as possible. This is regardless of who owns which assets.
So do not worry if you are a non earning spouse. Even if the family home is owned by your husband, this does not mean you don’t have a claim on the property simply because it’s not in joint names.
Don’t worry that your husband can ask you to leave the property or change the locks. Even though the property may be in his name it is treated as a pooled asset for divorce purposes.
Photo credit: Flickr/dmc_fz7_az
Read More
If you enjoyed this post, we recommend the following as additional reading.
Pensions and Divorce: Pension sharing/splitting
Pension sharing is available where divorce proceedings began on/after 1st December 2000. The court will split the pension fund between the 2 parties, and the relevant part will be transferred from the scheme member to a pension fund in the name of the ex spouse. The scheme member’s pension is reduced by the value of…
Ten top tips for divorce
Everyone wonders what life would be like without enough money. For people facing up to the reality of divorce or the dissolution of a civil partnership, understanding how the finances will work when they are on their own can feel like one of the biggest worries of all. Basic maths tells you that running two…
Would you be happy to throw away your money?
Now of course we all know that if I asked this question directly the answer from everyone would be “NO”. And probably you would think that I was even mad to ask the question. And yet, I often see this being done by my clients. I am dealing with a client now who received a…