One of the most contentious issues that often arise during a divorce is the division of assets.
In the United Kingdom, the courts follow a general principle when dividing assets. This is known as the ” divorce 70 30 asset split”.
Divorce 70 30 asset split proceedings can be difficult and emotionally taxing for any couple.
The 70/30 rule states that the court will divide assets fairly and reasonably. This rule is not set in stone and is not always apply in every case. But, it does provide a general guideline for the court to follow.
Note that the divorce 70 30 asset split UK applies only to the division of assets. This doesn’t apply to issues such as child custody or spousal support.
Identifying And Classifying Divorce 70 30 Asset Split
When dividing assets during a divorce, identify and classify all assets owned by the couple. This can include everything:
- Bank accounts
- Real estate
- Personal property
Note that you can’t divide all assets equally. Some assets are not subject to division. The court considers some separate property. But, others may be consider marital property and subject to a division based on the divorce 70 30 asset split UK.
Assets acquired before the marriage may be consider separate property. This doesn’t subject to division. Yet, the court will consider the contributions made by each party to the asset during the marriage.
When making a decision on the division of assets during a divorce, the court will consider various factors. This makes sure fairness and reasonableness. Factors according to Section 25 of the Matrimonial Causes Act 1973 will be taken into account. Additionally, the court may consider deviations from a 50/50 split. This includes a 70/30 split. This happens if it is deem necessary and appropriate. This will also be based on the specific circumstances of the case.
- The welfare and well-being of any minor children involved is of the utmost importance.
- Each party’s current income, earning potential, assets, and future financial prospects.
- The financial requirements, liabilities, and obligations of each party soon.
- The lifestyle the family maintained before the dissolution of the marriage.
- The age and duration of the marriage for both parties.
The Valuation of Assets
Once all assets have been identified and classified, the next step is to determine the value of each asset. This can be a complex process and may need the help of real estate appraisers, financial analysts, and business valuators.
Assets acquired during the marriage are considered marital property and subject to a division based on the 70/30 rule. Yet, there may be exceptions if the asset is inherited, gifted, or acquired through separate funds.
The following table provides examples of common methods used to value assets during a divorce:
The value of an asset can change over time and may need to be re-evaluated as part of the divorce process.
Once the divorce is final, the division of assets is final. Yet, the court may consider modifying the division of assets in certain circumstances. This includes a significant change in circumstances.
Negotiating A Fair Division of Divorce 70 30 Asset Split UK
Once the value of all assets has been determined, the next step is to negotiate a fair division of assets based on the 70/30 rule. This can be done through mediation, negotiation, or court.
Not all assets will be divided equally. Some assets may be considered more valuable or important to one party and, so, may be awarded to that party in a greater proportion.
If one party does not agree with the division of assets, they can seek mediation or take the matter to court. It is important to have legal representation and professionals from KQ Solicitors to assist in the process.
The court may overrule the 70/30 rule if exceptional circumstances make it unjust to apply the rule. Seek legal advice to understand if the case qualifies for such an exception.
The Impact of the 70/30 Rule on Children and Spousal Support
The divorce 70 30 assets split rule applies specifically to the division of assets. But, the division of assets can indirectly impact these issues.
For example, suppose one party receives a greater proportion of assets. In that case, they may be able to financially support themselves and their children without spousal support. This can also impact child custody arrangements. The court will consider each party’s financial stability and ability to provide for the children.
Q: Is the 70/30 rule applied in every divorce case?
A: No, the 70/30 rule is not set in stone and is not always applied in every case. The court will consider all relevant factors when determining the division of assets.
Q: What factors does the court consider when dividing assets?
A: The court will consider factors. This includes:
- The marriage’s length
- Each party’s financial needs
- The contributions made during the marriage
Q: Does the 70/30 rule apply to child custody or spousal support issues?
A: No, the 70/30 rule applies only to the division of assets and not to issues such as child custody or spousal support.
Q: Can the conduct of each party during the marriage impact the division of assets?
A: Yes, the court will also consider the conduct of each party during the marriage when determining the division of assets.
Q: What is considered an asset?
A: Assets can include everything from bank accounts and investments to real estate and personal property.
Q: Is it necessary to hire professionals to assist in the division of assets?
A: Yes, hire experienced professionals. This includes financial advisors, business valuators, and real estate appraisers. They can assist in identifying, evaluating, and negotiating the fair division of assets.
Q: Are there any exemptions or exceptions to the 70/30 rule?
A: The court may make exceptions to the 70/30 rule. This will be based on the case’s unique circumstances. They will also consider all relevant factors when determining the division of assets.
Conclusion – Divorce 70 30 Asset Split
The 70/30 rule is not a one-size-fits-all solution. The court will consider all relevant factors when deciding on the division of assets.
The court considers the conduct of each party during the marriage. Suppose one party has engaged in conduct that has led to the breakdown of the marriage, such as infidelity or financial misconduct. In that case, this may impact the court’s decision on the division of assets.