Property Division

Property division is an important aspect of any divorce or separation. It can be a complex process that can lead to disagreements and disputes. When it comes to property division, it’s crucial to have the right legal advice and representation to ensure that your interests are protected.

At Sterling Law, our team of experienced family lawyers understands the complexities of property distribution in divorce and can provide you with the guidance and representation you need to achieve a fair and equitable settlement. In this article, we will explain what property division is, how it works, and the importance of seeking the assistance of an experienced legal team like Sterling Law.

What is Property Division?

Property division is the process of dividing property and assets between two individuals who are ending their marriage or domestic partnership. The process involves determining what property and assets are considered community property and what is separate property. Community property refers to property and assets that were acquired during the marriage or partnership, while separate property refers to property and assets that were owned before the marriage or partnership began.

In some cases, it can be difficult to determine what is considered community property and what is separate property. For example, if one spouse owned a business before the marriage but continued to run the business during the marriage, it can be challenging to determine how much of the business is considered community property.

Identifying Marital Assets

Although every relationship is different, marital property can include:

The family home. Often the largest single asset, especially if it is fully or partially paid off.
Financial accounts. Joint bank accounts, savings, and investments made during the marriage.
Pensions. These frequently represent a substantial source of future income, so they carry significant weight in a final arrangement.
Business interests. If one or both spouses own or manage a company, its valuation and any corresponding shares need careful consideration.
Other valuables: art collections, antiques, vehicles, or any items of high monetary or sentimental value may also be relevant.

Distinguishing between assets acquired during the marriage and any that predate the union is crucial. Although the court may examine pre-marital property, the extent to which it influences a final outcome can vary depending on individual circumstances and any agreements signed beforehand.

Once you know which assets form part of the division of marital property, ensuring they are accurately valued is the next critical stage. This process is particularly important if there are pensions, shares in a private company, or real estate beyond a primary residence. Often, independent experts are brought in to conduct valuations that both spouses can accept.

Pursuing a Property Settlement

Most couples prefer to settle without going to court, using mediation or a collaborative law approach, because these methods tend to be less time-consuming, less costly, and more adaptable to individual needs.

In mediation, an impartial professional helps guide discussions, ensuring both parties have the opportunity to outline their objectives. Mediators do not make binding decisions; rather, they facilitate dialogue, aiming to find middle ground. If successful, the couple’s agreement can then be transformed into a legally enforceable consent order.

Should discussions break down, however, or if one party refuses to compromise, a more formal court process may be the next step. Courts have the authority to make binding decisions based on the evidence and relevant legal principles.

What Factors Do Courts Consider When Dividing Property?

If a divorcing couple cannot agree on how to divide their assets, the courts step in to make a fair decision. In England and Wales, judges rely on specific legal guidelines (primarily Section 25 of the Matrimonial Causes Act) to balance the various interests involved. Although every situation is different, here are the key points that generally influence the courts’ approach:

Financial needs. Ensuring both parties have sufficient resources to live on and support any dependants is usually paramount.
Standard of living. The lifestyle enjoyed during the marriage can be taken into account, although replicating it exactly might not be feasible if incomes must now support two separate households.
Age and health. If one party faces medical issues or is nearing retirement, that individual’s future needs could weigh more heavily in any arrangement.
Earning capacity. A spouse’s ability to generate income after the marriage dissolves may influence the ultimate share they receive.
Prenuptial or postnuptial agreements. While not automatically binding in England and Wales, documented agreements made either before or after the wedding may hold significant persuasive weight in court, provided they were entered into fairly and with full financial disclosure.

The Importance of Seeking the Assistance of Experienced Family Lawyers

Division of assets in a divorce proceedings can be a contentious and emotional process, especially when significant assets are involved. It’s crucial to have an experienced legal team on your side to ensure that your interests are protected throughout the process. At Sterling Law, our team of family lawyers has the knowledge and expertise to help you navigate the complexities of splitting property.

Our lawyers can work with you to identify what property and assets are community property and what is separate property. We can also help you understand the laws and regulations that govern property division. Our lawyers can also help you negotiate a settlement that is fair and equitable, taking into account the unique circumstances of your situation.

In some cases, property division disputes may need to be resolved in court. Our team of lawyers has extensive experience representing clients in court, and we can provide you with the guidance and representation you need to achieve a successful outcome.