Protecting your assets in a divorce
Divorce is one of life’s most stressful events - emotionally, practically, and financially. When a marriage ends, questions of who gets what can quickly become complicated, especially when property, savings, pensions, and other financial assets are involved.
At Fonseca Law in Ebbw Vale, South Wales, we often support individuals navigating divorce and separation who want to understand how to protect their assets and ensure a fair outcome. Below, we'll explain how assets are divided in a divorce under Welsh law, the legal principles the courts use, and practical steps you can take to protect your interests.
Whether you're considering divorce, currently going through one, or simply want to prepare for the future, this guide provides the clarity and guidance you need.
Understanding how divorce works in Wales
Although Wales has its own legal identity within the UK, the divorce process and laws on financial settlements are broadly the same across England and Wales, as both are governed by shared legislation, particularly the Matrimonial Causes Act 1973 and relevant case law.
When a marriage ends, the courts have the power to redistribute property, pensions, savings, and other assets between the spouses. Contrary to popular belief, assets are not automatically split 50/50 - although equality is the starting point.
The court’s aim is to reach a fair outcome, considering each person’s needs, responsibilities, and future circumstances.
What types of assets can be affected?
If you’re going through a divorce, it’s important to understand that almost all financial assets - whether held jointly or in one spouse’s name - may be considered for division.
These include:
- The family home and any other property
- Savings and investments
- Pensions and retirement funds
- Business interests or shares
- Vehicles, valuable items and heirlooms
- Income or future earning potential
Even assets you brought into the marriage (such as a house you owned before getting married) could be taken into account, particularly in longer marriages or where needs cannot be met otherwise.
How are assets divided?
In Wales (as in England), the court uses several key principles to guide financial division:
1. Needs of any children
The welfare of any children under 18 is the court’s top priority. This includes ensuring they have a secure home and proper support.
2. Financial needs and obligations of each spouse
The court will look at housing needs, living expenses, and whether one party is financially dependent on the other.
3. Length of the marriage
The longer the marriage, the more likely assets will be treated as jointly owned - even if held in one spouse’s name.
4. Contributions made by each spouse
This includes both financial contributions and non-financial ones like raising children or managing the home.
5. Standard of living during the marriage
The court considers the lifestyle you both enjoyed and whether either party would experience a significant drop in living standards after divorce.
Can you protect assets in a divorce?
Yes - but the law is complex, and timing matters.
Here are key ways you can protect your assets:
1. Pre-nuptial and post-nuptial agreements
A pre-nuptial agreement (signed before marriage) or a post-nuptial agreement (signed during the marriage) can outline how you both intend to divide assets if you divorce. While not automatically binding, these agreements are increasingly being upheld by the courts in Wales, especially when:
- Both parties took independent legal advice
- The agreement was entered into freely, with no pressure
- Both parties made full financial disclosure
- The agreement is fair and meets the needs of both parties (and any children)
These agreements can be a powerful tool to protect property you brought into the marriage or future inheritances.
2. Keeping assets separate during marriage
While not a guarantee, keeping finances separate (e.g. not mingling inherited money or pre-marital assets in joint accounts or investments) may help support your case if you argue that certain assets should not be shared.
However, courts in Wales can still include “non-marital” assets in a financial settlement if:
- The marriage was long
- The assets were used jointly (e.g. to buy the family home)
- One spouse’s needs cannot be met otherwise
3. Full and accurate financial disclosure
If you want to protect your interests, transparency is key. Hiding or undervaluing assets is not only unethical - it can lead to serious legal consequences.
In financial negotiations or court proceedings, both parties must provide full disclosure of all their finances. If one party is found to have misled the other or the court, any settlement can be overturned later.
4. Reaching a fair settlement early
Whenever possible, we encourage clients to resolve financial matters through negotiation or mediation rather than contested court proceedings. This allows for more control, privacy, and potentially lower legal costs.
A well-drafted Consent Order, approved by the court, can formalise an agreement and provide legal certainty, preventing either party from making future claims.
5. Getting expert legal advice
There is no one-size-fits-all approach to protecting assets in a divorce. The right strategy will depend on your personal circumstances, the nature of the assets involved, and the length of the marriage.
Our experienced family and conveyancing solicitors in Ebbw Vale can:
- Assess the risk to your assets
- Help you negotiate a fair settlement
- Draft and file legally binding agreements
- Represent you in financial court proceedings if necessary
What about business owners?
If you own a business, this can complicate matters. The court will need to value the business and consider whether it is a marital asset. In some cases, this may involve expert valuations, and care must be taken to ensure that the business can continue to operate without disruption.
You may be able to:
- Offer other assets in exchange for keeping the business intact
- Structure a buyout of your spouse’s interest
- Use shareholder agreements to limit risk in future divorces
Protecting a business often requires forward-thinking legal planning - something we can assist with.
Can inheritance be protected in divorce?
Inheritance is usually treated as a non-marital asset if it is kept separate from joint finances. However, the court can still consider inherited money or property in the final settlement if:
- The inheritance was used for family purposes (e.g. buying the family home)
- The marriage was long
- The other party’s financial needs cannot be met otherwise
To better protect inheritance:
- Keep it in a separate account or investment
- Avoid using it for joint purposes
- Consider a pre- or post-nuptial agreement
Key takeaways
- The courts in Wales aim for fairness, not automatic equality when dividing assets in divorce.
- Everything - from property and pensions to business interests - can be considered part of the matrimonial pot.
- There are steps you can take to protect your assets, including legal agreements, financial planning, and early negotiation.
- Professional legal advice is essential, especially when complex assets are involved.
Speak to a divorce and conveyancing solicitor in Ebbw Vale
At Fonseca Law, we’ve helped individuals across South Wales safeguard their financial interests during divorce. Whether you're worried about your home, inheritance, or savings, we’ll guide you through every step - professionally, confidentially, and with your best outcome in mind.
If you’d like to speak to our expert family law and divorce solicitors in Ebbw Vale, contact us today for a confidential consultation.