Divorce can be one of the most emotionally challenging periods of your life – but it’s also a time when clear thinking is essential, particularly when it comes to your finances. Whether you’re initiating proceedings or responding to them, it’s important to understand how you can protect your assets and secure a fair outcome.
UK law aims to divide assets fairly rather than equally. That means the court considers your individual circumstances, including income, earning capacity, needs and contributions. But protecting your interests doesn’t mean concealing your assets – in fact, transparency is essential. It’s about understanding your rights, being prepared and knowing what steps you can take to safeguard what’s rightfully yours.
This article explains what counts as an asset, the proactive steps you can take before divorce proceedings begin and how to protect your finances throughout the process. Whether you’re concerned about the family home, your pension, your business or an inheritance, it’s never too early to seek legal advice.
What counts as an asset in divorce?
In UK divorce proceedings, financial settlements can include a broad range of assets. These are typically divided into:
- Matrimonial assets – which are usually acquired during the marriage and include things like the family home, shared savings, pensions and jointly owned businesses. These are most likely to be subject to division.
- Non-matrimonial assets – which may include inheritance, gifts or pre-marital property. These can sometimes be excluded from settlements – but not always. If, for example, inheritance was used to buy a marital home or fund joint ventures, it may be considered part of the matrimonial pot.
It’s important to understand that ownership alone doesn’t necessarily protect an asset. Even if property or savings are in your name only, the court can still consider them part of the joint asset pool if they were used to benefit the marriage.
Taking steps before divorce proceedings begin
If you’re contemplating separation, there are a number of practical and legal steps you can take early on to protect your finances. Seeking professional legal advice is one of the most important. A divorce solicitor can help you understand what is and isn’t likely to be divided and how to approach disclosure with confidence.
It’s also wise to begin gathering financial documents – including bank statements, mortgage details, pension valuations, investment accounts and business accounts. Having clear records of ownership and value will make it easier to negotiate a fair outcome.
One of the best forms of pre-emptive asset protection is a prenuptial agreement. While not automatically legally binding in England and Wales, courts will often give weight to a prenup if both parties entered it willingly, with full disclosure and independent legal advice. Similarly, postnuptial agreements – made during the marriage – can help safeguard future disputes and protect inherited or pre-marital assets.
For those already married without a prenup, a deed of trust or separate ownership of new assets may help demonstrate intent to keep certain property outside of the marital pool. But it’s always best to seek legal advice to avoid unintended consequences.
What to do during divorce proceedings
Once divorce proceedings have begun, both parties are legally required to disclose their financial position in full. This includes income, savings, pensions, properties, business interests, investments and debts. Failing to do so can result in serious consequences, including court sanctions and the setting aside of any agreement reached.
If you’re concerned that your former partner is hiding assets, your local divorce lawyer can request further disclosure or apply to the court for a financial order to compel cooperation. In high-net-worth or complex cases, forensic accountants may be involved to trace hidden wealth or unusual transfers.
To protect your own position, you must also be transparent. At the same time, you can take lawful and reasonable steps to limit the risk of asset dissipation. For example, you may want to:
- Close joint accounts or limit access to prevent large withdrawals
- Change passwords to online accounts
- Keep a record of all shared spending and financial decisions
- Consider applying for a freezing injunction if you believe assets are at risk of being moved or sold to defeat your claim
Crucially, any protective action should be taken on the advice of the best local divorce lawyers. Acting unilaterally or withholding information can weaken your case.
Protecting property, business & inheritance
The family home is often the most valuable asset in a divorce – and also the most emotionally charged. If the property is in joint names, both parties have legal rights to it. If it’s in one person’s name, the other may still have a beneficial interest based on contributions or use during the marriage. If you fear your spouse may attempt to sell or remortgage the home, a top divorce solicitor can help you register a Home Rights Notice with the Land Registry to prevent this.
In divorce cases involving a business, the court may consider it an asset to be valued and potentially divided. If you’re a business owner, you should avoid mixing personal and business finances and keep thorough records to demonstrate the value and your involvement. It’s rare for courts to force a sale of a profitable business but part of its value may be offset against other assets in the settlement.
Inherited wealth can be excluded in some cases, particularly if it was kept separate from joint finances. However, if an inheritance was used to buy property, fund improvements or support the couple’s lifestyle, it may become part of the marital assets. Clear documentation and timely legal advice are essential to argue your position.
Seeking expert advice early
The decisions you make before and during divorce proceedings can shape your financial future. If you’re unsure about what counts as a marital asset or whether you need to take urgent action to protect your finances, legal advice can help you avoid costly mistakes.
Our divorce solicitors at Osbourne Pinner are experienced in complex financial settlements and asset protection. Whether you’re considering divorce, already separated or worried about how assets might be divided, we’ll offer clear, practical guidance tailored to your situation.
We offer a free 30-minute consultation to discuss your case. Contact us via [email protected][email protected] or call 0203 983 5080 to speak with a family solicitor today.
You can come to our offices in Harrow, Canary Wharf, Piccadilly Circus or Manchester – or speak to us on a video call if you’d prefer a remote consultation.
