How the court decides a financial settlement

What law does the court apply?

The court's powers come from the Matrimonial Causes Act 1973. Under section 25, the court must consider all the circumstances of the case, giving first consideration to the welfare of any children under 18. It must then have regard to a list of factors, including:

• each party's income, earning capacity, property and other resources, now and in the foreseeable future;
• their financial needs, obligations and responsibilities;
• the standard of living during the marriage;
• each party's age and the length of the marriage;
• any physical or mental disability;
• the contributions each has made, including looking after the home and family;
• conduct, where it would be inequitable to disregard it; and
• the value of any benefit, such as a pension, that will be lost on divorce.

These factors are not ranked, and their weight depends on the facts of each case.

Is everything split 50/50?

Not automatically. In White v White [2000], the House of Lords held that the aim is fairness, and that any proposed division should be checked against the "yardstick of equality", departing from an equal split only where there is good reason. In Miller v Miller; McFarlane v McFarlane [2006], it identified three principles of fairness: needs, compensation and sharing.

The sharing principle generally applies to matrimonial property, built up during the marriage. Assets brought into the marriage, inherited or acquired after separation are treated differently, and in Standish v Standish [2025], the Supreme Court confirmed that such non-matrimonial property is not subject to sharing, although it may still be used to meet needs.

How do needs affect the outcome?

In the majority of cases, needs determine the result. Where the available assets are not enough to meet both parties' reasonable needs, particularly for housing, the court will prioritise meeting those needs over an equal division. This often results in a larger share for the parent with whom the children mainly live. Needs are assessed generously but realistically, by reference to the parties' standard of living, ages, health and earning capacities, and the length of the marriage.

What about compensation and contributions?

The court will not discriminate between the spouse who earned the money and the spouse who cared for the home and children: both are treated as equally valuable contributions. Compensation may be relevant where one spouse has given up a career for the family and suffered a lasting financial disadvantage as a result, although such awards are relatively rare. Arguments that one spouse made a "special contribution" justifying more than half, such as exceptional business success, very rarely succeed.

Does behaviour or the length of the marriage matter?

The reasons for the breakdown of the marriage, such as adultery, will not usually affect the financial outcome. Conduct is only taken into account where it is so serious that it would be unfair to ignore it, or where it has a financial effect, for example deliberately wasting or hiding assets, or failing to give proper disclosure. The length of the marriage can be significant. In a short marriage, the court may be more willing to return each party to their financial position at the start, particularly where there are no children.

Will there be ongoing maintenance?

The court must consider whether a clean break can be achieved, ending all financial ties between the parties as soon as is just and reasonable. Where one spouse cannot meet their needs from their own income and share of the capital, spousal maintenance may be ordered, often for a fixed term to allow them to adjust. Child maintenance is dealt with separately and is not affected by a clean break between the parents.