How Matrimonial Assets Are Identified and Divided
On divorce, working out what the couple owns and how it should be shared is often the most complex part of the process. This article explains how matrimonial assets are identified, valued and divided, and the questions clients most often ask.
The key points
The aim is a division that is fair in all the circumstances, which does not always mean an equal split. The outcome depends on what is included in the pool, what it is worth and what each spouse has contributed.
- Which assets count: property acquired during the marriage is usually included, while assets owned before marriage or received as gifts or inheritance may be excluded unless they became part of the family’s shared life, such as the family home
- Full and frank disclosure: both spouses must reveal all assets, income and debts, and concealing information can count against them
- Valuation: homes, businesses, shares, retirement funds and overseas assets may need professional valuation as at a particular date
- Contributions: both financial contributions and non-financial ones, such as homemaking and caring for children, are taken into account
- Debts and liabilities: mortgages, loans and other liabilities are considered alongside the assets
- Agreement or court order: spouses can agree on a division, often through mediation, before the court has to decide
What to do next
Gathering financial records early and understanding which assets are likely to be included gives you a clearer view of a fair outcome. Talk to us for a confidential discussion about your financial position and the options available to you.
