The biggest thing people end up talking about in a divorce is how to split assets. What assets are included in the joint matrimonial pot? However, as much of a believer in equality you might be, the dividing isn’t always so clean cut.
What are matrimonial assets?
What is the definition of matrimonial assets? In terms of property and settlement, matrimonial assets very roughly comprise of those wealths obtained during a wedding (or civil collaboration) which has come from each partner or through joint work. This can involve assets that are held in one person’s name or jointly owned – ownership alone does not necessarily determine the treatment on divorce.
Common examples include:
The marital residence and all other property acquired throughout the marriage,
ISAs, stocks, shares and premium bonds that were acquired whilst you are together.
Marital pensions (pension value from the couple’s marriage during up to the date of separation)
Cars, valuable items (jewellery/home electronics) and some personal property if above a stated value.
The court looks at the “matrimonial pot” as a whole and decides what is right after asking, “How much does each need”? Does one earn more than another (earning capacity)? For advice from a Solicitor Gloucester, visit Dee & Griffin, a leading Solicitor Gloucester.
What about pensions?
What is accrued during the marriage tends to be treated as matrimonial. Pensions can be the subject of a pension sharing order, offsetting (trading some of actuarial value against other assets) or in more extreme cases attachment orders.
Businesses: are they included?
Assets also include businesses and business interests, if the net value of these combined assets grew during the marriage (entered into or increased in someone’s hands as vs. known married person). Although the business may be in one spouse’s name, the court can still look at its value and how income is created. The calculation of value can be problematic particularly where goodwill, retained profits or future earning potential is an issue.
Inheritances: always excluded?
Not always. Inheritances are frequently characterised as “non-matrimonial” (particularly if kept separate) but remain relevant – particularly when there is insufficient other wealth to meet needs, or the inheritance has been used for family purposes such paying off a mortgage or funding renovations.
The takeaway
The court is not overly concerned with whether a specific piece of property was or was not acquired during the marriage, as opposed to who paid for what. Such early advice can help clarify what probably goes into that asset pool and what would constitute a fair division without opening up unnecessary conflict.
