A Fresh Start: Practical Steps for Dividing Finances After Separation
by Ciara Bogue & Jane Carney
January often feels like a turning of the page. If you are contemplating separation or have recently decided to go your separate ways, you may be wondering what happens to your home, savings, pensions and other assets. With clear advice and a steady plan, the process need not be daunting or acrimonious. Our role is to guide you towards a fair, workable outcome so you can move forward with confidence.
Start with the Big Picture
Before you negotiate who gets what, take a breath and map out your priorities. For most families, the key questions are the home, day‑to‑day affordability, and long‑term security. Think in terms of needs rather than positions. What do you each need to rehouse? How will the children’s routines be supported? What income and savings will keep both households stable in the short and medium term?
What Counts as Matrimonial Assets?
When a married couple separates, the starting point is to identify the assets and liabilities in the “matrimonial pot”. This typically includes the family home, other properties, savings and investments, pensions, business interests, vehicles, valuable personal items and any debts. Property and money built up during the marriage are most commonly treated as matrimonial, but assets owned before the marriage or received by way of gift or inheritance may also be considered, especially where they have been mixed with matrimonial finances or used for the family’s benefit.
The court’s focus is on fairness. That means considering each party’s needs and resources, the needs of the children, the standard of living during the marriage, the length of the relationship, the age and health of each person, the contributions made (including non‑financial contributions such as caring for children and running the home), the financial consequences of separation, and, in limited circumstances, conduct.
Build a Clear Financial Picture
Full, honest financial disclosure is the foundation of any good settlement. Gather the paperwork that shows your assets, income and debts. Bank and savings statements, mortgage statements, credit card and loan balances, payslips, P60s or tax returns, pension valuations, business accounts, and evidence of any other investments or liabilities are all relevant. If either of you has received gifts or inheritances, note those as well—these can be treated differently depending on the circumstances and needs. Even if you hope to agree things between you, documenting the facts reduces misunderstandings and speeds everything up.
The Family Home
Deciding what happens to the home is often the hardest issue. Broadly, options include selling and dividing the proceeds, one partner buying out the other, or one person staying for a time before a sale later. Which route works will depend on affordability, mortgage capacity, and the children’s housing needs. If one of you remains in the home, consider whether a lump sum, a transfer of equity and a new mortgage, or a deferred sale arrangement is most realistic. Always check the practicalities with your lender early. If your name is not on the deeds or the mortgage, you may still have rights—take advice before moving out or making any irreversible decisions.
Pensions: the Often‑Overlooked Asset
Pensions can be one of the largest assets in a relationship and should not be forgotten. There are different ways to deal with them, including sharing a pension so each of you has your own fund for retirement or offsetting (for example, keeping more of the home in exchange for less of the pension). Understanding the value and type of your pensions is essential; a formal valuation is usually needed, and expert input may be sensible for complex or defined benefit schemes. A settlement that looks fair today can be unfair in the long run if pensions are ignored.
Spousal Maintenance and Clean Breaks
Where appropriate, financial arrangements can include spousal maintenance for a period of time. In many cases, a clean break order is achievable and desirable, ending ongoing financial obligations between former spouses. Whether maintenance is suitable depends on need, ability to pay and the overall fairness of the package. The aim is to provide certainty and enable both of you to reorganise your finances with confidence.
Children and Financial Arrangements
Arrangements for children sit alongside financial discussions. Child maintenance is usually dealt with under established guidelines, either by agreement or through enforcement by the Child Maintenance Service. Housing and day‑to‑day budgets are considered so that the children’s best interests remain central. Keeping parenting issues and financial issues as separate conversations often helps reduce tension and reach a balanced outcome more swiftly.
In Conclusion
If January is your moment to make a fresh start, taking early advice can provide a clear plan and real peace of mind. An initial meeting with us will map your assets and priorities, explain your options, and set out sensible next steps. With calm, informed guidance, most people achieve resolution without acrimony and without unnecessary court involvement. When court is required, you will have robust representation and a strategy focused on the right outcome for you.
The matrimonial department at PA Duffy Solicitors are here to help you move forward, make well‑informed decisions, and reach a fair settlement so you can start the next chapter with clarity and confidence. Please do not hesitate to contact us.