How Will Assets Be Split in a No-Fault Divorce?

No-fault divorce law came into effect in April 2022. With no-fault divorces being the biggest change in divorce law for decades, many people are wondering how it will affect, if at all, the splitting of assets. 

In this article, we explain how the splitting of assets is affected by the new no-fault divorce law.

Will assets be split differently in a no-fault divorce?

The rules around splitting assets will not change in a no-fault divorce, and the courts won’t approach the decision any differently than in a traditional divorce. The same applies to the custody of children. No-fault divorces won’t alter how the courts view the division of assets, financial provision or child arrangements.

However, though the new rules won’t have any legal applications for negotiating financial settlements, it could still have an impact. The entire purpose of introducing no-fault divorces is to mitigate conflict between the two parties. By removing the need to ‘blame’ each other for the breakdown of the marriage, the hope is that the divorce process can proceed in a civil manner. If this does indeed occur, and communication between parties is improved, then it may be the case that divorcing couples are more likely to come to an agreement about how to split the assets. Not only will this result in a speedier resolution but it should also lead to a fairer result for all involved.

An agreement can come via many routes, including:

• Through the courts
• Negotiation
• Arbitration
• Mediation
• Collaborative law
• Or a combination of any of the above

If you and your spouse do reach an agreement on your financial arrangements, it’s still important to have it finalised in a court order. If you don’t, then any financial claims stay open and you may be at risk of further financial claims at any point in the future — even after the divorce itself has been finalised.

Could this change in the future?

The rules regarding the division of assets has been a point of contention for many decades. There are currently moves to try to clarify and even reform these rules altogether. 

Many people feel that judges have too much discretion when it comes to splitting assets, which makes it difficult to predict what a final court order might look like. With more foresight, parties may be able to better judge whether a negotiation agreement is in their best interest.

Baroness Deech in the House of Lords is already pushing for reform by proposing brand new rules to how the division of assets is approached during a divorce. While these changes aren’t likely to pass through law any time soon, there are many indicators that the rules will change at some point in the future.

Until then, Goodwins Family Law Solicitors will continue to work with its clients under the current rules to ensure they reach the most suitable resolution for them.

Goodwins Family Law Solicitors are a leading London law firm with over 25 years’ experience. A member of the Law Society, we are certified for excellence. Our divorce lawyers are specialists in their field and can offer all the support, knowledge and advice to help you reach a satisfactory resolution. So whether you’re looking for advice on the division of assets, or you need expert representation for a high net worth divorce, we can help.

Contact us today to arrange a consultation in person or via video call.