Splitting money and property

One of the most common misunderstandings about divorce is that the final order ends everything. It ends the marriage. It doesn't, on its own, deal with your house, savings, pensions or debts. That's a separate process, and it's where most of the decisions that affect your future are made.

The divorce doesn't settle your money

The Fair Shares study, the largest recent research into how couples sort out their finances on divorce, found that only about a third of divorcing couples formally finalise their finances with a court order, and only around one in ten actually go to court over money (University of Bristol).

That means many people divorce without a binding financial agreement. Some have very little to divide. Others simply don't realise they need one, and that can come back to bite them years later.

What gets divided?

Broadly, everything either of you owns or owes can be considered, whoever's name it's in. That includes:

• The family home and any other property
• Savings, investments and cash
• Pensions, which are often worth more than people expect (see our pensions guide)
• Businesses and shares in them
• Cars, valuables and possessions
• Debts, including mortgages, loans and credit cards

Assets you had before the marriage, or inherited, may be treated differently, particularly in shorter marriages or where there's enough to go around. But they aren't automatically ring-fenced, and if they're needed to meet someone's needs, the court can take them into account.

How is it decided?

There's no formula and no automatic 50:50 split. If a judge has to decide, they look at the factors set out in section 25 of the Matrimonial Causes Act 1973. The first consideration is the welfare of any children under 18. After that, the court looks at things like:

• each person's income, earning capacity and resources, now and in the foreseeable future
• each person's financial needs, particularly for housing
• the standard of living during the marriage
• your ages and how long the marriage lasted
• any disability
• the contributions each of you made, including looking after the home and children

In practice, for most couples, the starting point is meeting both people's needs, especially making sure the children have a secure home. Where there's more than enough to meet needs, courts start from the idea that assets built up during the marriage should be shared equally, and then consider whether there's a good reason to depart from that.

The court will also consider whether a clean break is possible, so that you're no longer financially tied to each other. Where it isn't, one person may pay spousal maintenance to the other for a period. Child maintenance is separate and is usually worked out using the Child Maintenance Service formula.

There's no automatic 50:50. The starting point is making sure everyone, especially the children, has somewhere to live.

Full financial disclosure

Before you can agree anything fairly, you both need to know what there is. That means "full and frank" disclosure of everything you own, owe and earn. If you go to court, you'll each fill in Form E, a detailed financial statement with supporting documents. Many mediators and solicitors use Form E or something similar even when you're agreeing things between yourselves.

Hiding assets is a serious mistake. If it comes to light later, a settlement can be set aside and the court can order you to pay the other side's costs. Our guide to divorce costs explains why getting your paperwork together early saves money.

If you can agree

Most couples do reach an agreement, sometimes on their own, often with help from mediators or solicitors. You might use:

• Mediation, where a trained mediator helps you both reach an agreement. A first meeting, called a MIAM, costs around £120 each unless you qualify for legal aid (GOV.UK).
• Solicitor negotiation, with each of you having your own solicitor.
• Collaborative law, where you each have a solicitor and meet together to work it out, agreeing not to go to court.
• Arbitration, where you pay a qualified arbitrator to make a binding decision, usually faster than court.

Once you've agreed, a solicitor drafts a consent order. You send it to the court with a short statement of your finances, and a judge checks it's broadly fair. The court fee is £62 (GOV.UK). You can apply once you have your conditional order.

If you can't agree

Either of you can apply to court for a financial order. The fee is £321. Unless an exemption applies, such as domestic abuse, you'll need to attend a MIAM first.

Court cases usually follow three stages:

1. First appointment, where the judge decides what further information or valuations are needed.
2. Financial dispute resolution (FDR) hearing, where a judge gives an indication of what they think a fair outcome would be, to help you settle. Many cases settle here.
3. Final hearing, where a different judge hears the evidence and makes a decision.

Contested cases take longer and cost far more than agreed ones. Even if you start at court, you can still settle at any point, and most people do.

One more thing to know: if you remarry before applying for a financial order, you may lose the right to make certain claims. Get your application or consent order in place first.

Why a court order matters

Without a court order, financial claims between you stay open, even after the divorce. Someone could, in principle, make a claim years later, when circumstances have changed completely. A clean break consent order closes that door.

It also protects you when it comes to the house and pensions. A pension can only be shared by court order, and a mortgage lender or Land Registry will usually want to see one before the home is transferred.

The government is also reviewing the law in this area. Its 2026 consultation, A fairer end to relationships, looks at reforming financial remedies on divorce (GOV.UK). Nothing has changed yet, so the rules above still apply.

Common questions

Sources

1. University of Bristol and Nuffield Foundation, Fair Shares report (2023)
2. Ministry of Justice, Family Court Statistics Quarterly: April to June 2026
3. GOV.UK, Family court fees (EX50), updated 13 July 2026
4. GOV.UK, Family mediation voucher scheme
5. Matrimonial Causes Act 1973, section 25
6. Ministry of Justice, A fairer end to relationships (consultation, June 2026)

Keep reading

This guide is general information about divorce in England and Wales, not legal or financial advice. Laws, fees and figures change, so check the sources above and speak to a qualified professional about your situation. Facts checked 1 October 2026.