In brief
There is no fixed formula for what you will receive in a divorce settlement. The court’s starting point is a broadly equal division of matrimonial assets, but the final outcome depends on the specific circumstances of your marriage. Under Section 25 of the Matrimonial Causes Act 1973, the court must weigh factors including both spouses’ income, needs, the length of the marriage, and, above all, the welfare of any children.
Assets that may be divided include the family home, savings, pensions, businesses, and debts. A consent order is essential to make any agreement legally binding, because financial claims can survive a divorce indefinitely unless formally dismissed by the court.
How divorce settlements work in England and Wales
A divorce settlement is the financial arrangement agreed between you and your spouse, or decided by the court, as part of your divorce. It determines how your money, property, pensions, and other assets are divided.
Since the introduction of no-fault divorce in April 2022, the process of ending a marriage has become more straightforward. However, the financial side remains separate and often more complicated than the divorce itself. Obtaining a final order (formerly called decree absolute) does not automatically resolve your finances. You need a financial order to do that.
There are two main routes to settling finances:
- By agreement – You and your spouse negotiate a settlement, ideally with the help of solicitors or through family mediation, and then apply to the court for a consent order to make it binding. The court fee for a consent order is currently £60.
- By court application – If you cannot agree, either spouse can apply to the court for a financial remedy order. This is done by filing a Form A, which currently costs £313. The court will then consider the evidence and make a decision.
The court fee for the divorce application itself is £612.
It is important to understand that your financial claims against each other remain open even after the divorce is finalised. These claims are only disregarded if a consent order or court order specifically dismisses them. This means a former spouse could, in theory, bring a financial claim years after the divorce unless a clean break order has been obtained.
The Section 25 factors the court considers
When deciding what is fair, the court is required by Section 25 of the Matrimonial Causes Act 1973 to consider a specific set of factors. The first and paramount consideration is the welfare of any child of the family under the age of 18. Beyond that, the court looks at:
- Income and earning capacity – what each spouse currently earns and is likely to earn in the foreseeable future, including any increase in earning capacity that it would be reasonable to expect
- Financial needs and obligations – the costs each spouse faces now and in the future, such as housing needs, childcare costs, and debts
- Standard of living – the standard of living the family enjoyed during the marriage
- Age and duration of the marriage – a longer marriage generally strengthens claims to an equal share of assets
- Physical or mental disability – any health condition affecting either spouse’s ability to earn or meet their own needs
- Contributions – both financial contributions (such as earnings) and non-financial contributions (such as raising children and managing the home), which are treated as equally valuable
- Loss of benefit – any benefit that a spouse will lose as a result of the divorce, most commonly pension rights
- Conduct – only relevant if it would be inequitable to disregard it, such as deliberate dissipation of assets or financial infidelity
These factors apply to every case. There is no automatic entitlement to a particular share, the court balances all of these considerations to reach an outcome that is fair to both parties.
What assets can be divided in a divorce?
The court has wide powers to divide the overall pot of matrimonial assets. These typically include:
- The family home and any other property
- Savings and investments, including ISAs, shares, and bank accounts
- Pensions – often the second most valuable asset after the home
- Business interests and company shares
- Personal possessions of significant value
- Debts, including mortgages, loans, and credit cards
Assets acquired during the marriage are generally treated as matrimonial property and subject to division. Assets owned before the marriage, gifts, and inheritances may be treated differently, particularly in shorter marriages, but in longer marriages or where needs require it, even non-matrimonial assets can be brought into the equation.
Full financial disclosure is essential. Both spouses are required to complete a Form E, which is a detailed financial statement covering income, assets, debts, and future needs. Attempting to hide assets can result in serious consequences, including the court setting aside any agreement reached.
Is everything split 50/50 in a divorce?
The starting point for the division of matrimonial assets is equality. However, a 50/50 split is just that, a starting point, not a guaranteed outcome. The court applies the Section 25 factors to determine whether departing from equality is justified.
Common reasons the court may move away from an equal split include:
- Unequal needs – for example, if one spouse is the primary carer for young children and needs a larger share of the house
- Significant disparity in earning capacity – where one spouse sacrificed a career to support the family
- Short marriages – where equal division may not reflect the limited sharing of lives and finances
- Non-matrimonial assets – pre-marital wealth or inheritances may be ring-fenced in some circumstances
In practice, the court’s primary concern is that both parties can meet their reasonable needs, particularly where there are children. In many cases, needs-based considerations mean the outcome looks different from a straightforward equal split.
Who gets the family home?
The family home is often the most significant asset. There are several options the court may consider:
- Sale and division of proceeds – the property is sold and the net equity is divided, not necessarily equally
- Transfer to one spouse – one spouse keeps the home, usually in exchange for the other receiving a larger share of other assets such as pensions or savings
- Deferred sale (Mesher order) – the sale is postponed until a specific event, such as the youngest child finishing full-time education. Read more about what a Mesher order involves
- Continued joint ownership – less common, but possible in some circumstances
Your right to remain in the family home during the divorce process is protected by home rights under the Family Law Act 1996, regardless of whose name is on the title deeds. If you are concerned about your position, you can register a home rights notice to prevent the property being sold without your knowledge. For practical guidance on the different ways to handle jointly owned property, see our guide on how to split up when you own a house together.
How are pensions divided on divorce?
Pensions are a matrimonial asset and must be considered as part of any divorce settlement. They are frequently the second most valuable asset after the family home, yet they are also the most commonly overlooked.
There are three main ways to deal with pensions on divorce:
- Pension sharing – a percentage of one spouse’s pension is transferred into the other spouse’s name, giving them their own independent pension pot. This provides a clean break. A pension sharing order can only take effect once the final order of the divorce has been granted, not before.
- Pension offsetting – the value of a pension is offset against other assets. For example, one spouse may keep their pension while the other receives a larger share of the family home.
- Pension attachment (earmarking) – part of the pension income or lump sum is paid to the other spouse when the pension comes into payment. This is less commonly used because it does not provide a clean break.
Obtaining a proper pension valuation is essential. The cash equivalent transfer value (CETV) provided by the pension scheme may not reflect the true value, particularly for defined benefit (final salary) pensions. A specialist pension actuary report, known as a PODE (Pension on Divorce Expert) report, is often advisable.
For more on how long pension claims remain open, see our article on how long an ex-spouse can claim a pension after divorce.
Protecting your financial settlement
Reaching an agreement is only part of the process. To make your settlement legally binding and to protect both parties, you need a court-approved financial order.
- A consent order records the terms you have agreed and, once approved by the court, is legally enforceable. It also dismisses any future financial claims between you, providing certainty and finality.
- A clean break order severs all financial ties between you, meaning neither spouse can make a financial claim against the other in the future.
Without a financial order, your financial claims against each other remain alive indefinitely, even after the final order of the divorce has been granted. This is one of the most important reasons to seek legal advice, even if your divorce is amicable.
If you or your spouse have a prenuptial agreement, the court will take it into account, particularly if both parties received independent legal advice and made full disclosure. Following the Supreme Court decision in Radmacher v Granatino [2010], prenuptial agreements carry significant weight, although the court retains the discretion to depart from them if fairness requires it. For more on their legal standing, see our guide on whether prenups are legally binding in the UK.
Could the law on financial remedies change?
In December 2024, the Law Commission published a major scoping report on financial remedies on divorce and dissolution. The report concluded that the current law, which has not been substantially updated for over 50 years, lacks certainty and accessibility, and that the resulting uncertainty tends to promote dispute rather than settlement.
The Law Commission did not make specific reform recommendations, but outlined four potential models ranging from simple codification of existing case law through to a wholesale overhaul introducing a matrimonial property regime. The government is expected to provide a full response to the report during 2026.
For now, Section 25 of the Matrimonial Causes Act 1973 remains the governing framework, and all financial settlements continue to be decided under the current law. However, if reform does follow, it could significantly change how divorce finances are handled in England and Wales in the years ahead.
Get expert advice on your divorce settlement
Understanding what you are entitled to is the first step. Every situation is different, and the right advice can make a significant difference to the outcome of your settlement.
At Woolley & Co, Solicitors, our experienced family law solicitors offer a free initial consultation to help you understand your position and options. We work with clients across England and Wales, and we are upfront about our costs from the outset.
Call us free on 0800 321 3832 to speak with a specialist divorce solicitor, or request a call back at a time that suits you.
Frequently asked questions
What is a wife entitled to in a divorce settlement in the UK?
The law in England and Wales does not distinguish between husbands and wives. Both spouses have an equal right to a fair share of the matrimonial assets. What each person receives depends on the Section 25 factors, including income, needs, the length of the marriage, and contributions. The court’s primary concern is fairness, not gender.
Can my ex-spouse claim money after the divorce is finalised?
Yes. Financial claims survive the divorce unless they are formally dismissed by a consent order or court order. This means a former spouse could potentially bring a claim years later. Obtaining a clean break order or consent order that dismisses all future claims is the only way to prevent this.
Do I have to split my pension in a divorce?
Pensions are considered a matrimonial asset and must be taken into account, but they do not have to be shared equally or at all. The court may order pension sharing, offsetting, or attachment depending on what is fair in the circumstances. A pension sharing order only takes effect after the final order of the divorce.
How much does it cost to get a financial order in a divorce?
The court fee for a consent order (where you have agreed terms) is £60. If you need to apply to the court because you cannot agree, the Form A application fee is £313. The divorce application itself costs £612. You may be eligible for fee exemption or reduction depending on your financial circumstances.
Am I entitled to spousal maintenance?
Spousal maintenance is not automatic. It may be awarded where one spouse cannot meet their reasonable financial needs from their own income or assets, often because they gave up a career to care for children. The amount and duration depend on the circumstances. Read more about spousal maintenance and how it works.
Does it matter who files for divorce when it comes to the financial settlement?
No. Under the no-fault divorce system introduced in April 2022, it does not matter who applies for the divorce. The financial settlement is entirely separate from the divorce process itself, and the court considers the Section 25 factors regardless of who initiated proceedings.
Related Articles
- Am I entitled to spousal maintenance?
- How to split up when you own a house together
- What is a clean break order?
- How long can my ex-spouse claim my pension after divorce?
- Your rights to stay in your home when you separate
- What is a Mesher order?
- Does my husband have to pay the bills until we are divorced?
- Final order in divorce
- How to prepare for divorce
