How Are Assets Divided When a Civil Partnership Ends?

Assets are not automatically divided equally when a civil partnership is dissolved.

Equal sharing may provide a starting point for assets built up during the civil partnership, but the final outcome must take account of the available resources, each person’s needs and the welfare of any children.

Partnership and non-partnership assets

Assets accumulated during the civil partnership may include:

The shared home

• Other property

• Savings

• Investments

• Pension benefits

• Business interests

• Valuable personal assets

Property owned before the civil partnership, inherited assets and property acquired after separation may sometimes be treated differently.

However, these assets are not automatically excluded. They may still need to be considered where the remaining assets are insufficient to meet reasonable financial and housing needs.

Meeting financial needs

Where resources are limited, the court is likely to focus heavily on practical needs.

Relevant considerations may include:

• Housing for each former civil partner

• The housing needs of children

• Income and earning capacity

• Mortgage capacity

• Debts and liabilities

• Health or caring responsibilities

• The length of the civil partnership

This can result in an unequal division where that is necessary to reach a fair outcome.

What happens to the shared home?

The shared home is often the most significant asset.

Its treatment does not depend solely on whose name appears on the title or who originally paid the deposit. The court will consider the wider circumstances of the civil partnership and each person’s needs.

Possible arrangements may include:

• Selling the property and dividing the proceeds

• Transferring ownership to one person

• One person buying out the other’s interest

• Delaying a sale until a future event

• Retaining the property temporarily to provide housing for children

Any proposal should be considered alongside mortgage affordability, taxation, transaction costs and the availability of alternative accommodation.

The next part of this series considers how pension rights may be addressed following dissolution.

Elizabeth Stocker can advise on the treatment of property, savings, investments and other assets, helping you consider both your immediate needs and your longer-term financial security. Book an appointment with Elizabeth or complete the enquiry form.