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Mon-Thu: 9am–5pm Fri: 9am–3.30pm

info@divorcescotland.scot

0800 193 4525

Scotland's Fixed Price Divorce Specialists

The Finances

Financial Settlements in Scottish Divorce

Understanding fair sharing, protecting your assets, and securing your financial future

⚖️

Fair Sharing Principle

50/50 starting point

Scottish law presumes equal sharing of matrimonial property

🏠

What's Included

Matrimonial Property

Assets acquired during marriage up to separation date

Time Limits

Act quickly

Financial claims must be made before divorce is finalized

The Foundation: Fair Sharing Under Scottish Law

Family Law (Scotland) Act 1985, Section 9

"The net value of the matrimonial property should be shared fairly between the parties to the marriage"

Fair sharing = Equal sharing (unless special circumstances apply)

This principle means that, as a starting point, all matrimonial property should be divided 50/50. However, this can be adjusted based on:

  • Economic advantages or disadvantages from the marriage
  • Financial burden of caring for children
  • Source of funds or assets
  • Nature and use of property
  • Agreements between parties

What Counts as Matrimonial Property?

✓ INCLUDED - Matrimonial Property

  • Family home - Even if in one name
  • Savings & investments - Accumulated during marriage
  • Pensions - Rights built up during marriage
  • Cars & vehicles - Bought during marriage
  • Furniture & contents - Acquired together
  • Business interests - Developed during marriage
  • Debts - Incurred for family benefit
  • Life policies - With surrender value

❌ EXCLUDED - Non-Matrimonial Property

  • Pre-marriage assets - Owned before wedding
  • Inheritances - Received during marriage
  • Gifts from third parties - Not between spouses
  • Post-separation acquisitions - After relevant date
  • Damages payments - Personal injury claims
  • Pre-marriage pensions - Accumulated before

🏠 Special Rule: The Family Home

Even if bought before marriage, the family home becomes matrimonial property if:

  • It was bought as, or became, the family home
  • Both parties lived there as married couple

Exception: Inherited property or gifts from third parties remain excluded

The Crucial "Relevant Date"

The relevant date is critical - it's the date at which matrimonial property is valued and defined. This is typically:

📅 Date of Separation

When you ceased cohabiting as husband and wife

Most common relevant date

📋 Date of Service

When divorce papers are served

If still living together

Example: Why the Relevant Date Matters

John and Sarah separate on 1 January 2024. John's pension is worth £100,000 at separation but grows to £120,000 by divorce. Only the £100,000 is matrimonial property. The £20,000 growth is John's alone.

How Assets Are Valued

Asset Type Valuation Method Who Values It Typical Cost
Family Home Market value minus mortgage Chartered surveyor £300-500
Pensions Cash Equivalent Transfer Value (CETV) Pension provider Usually free
Business Market value / Asset value Business valuator £1,000+
Investments Market value at relevant date Provider statement Free
Cars Trade value Online guides/dealer Free-£100
Contents Second-hand value Agreement/valuer £200-500

Tip: Agree values where possible to save on valuation costs. Only get professional valuations for disputed or high-value items.

Pensions: Often the Biggest Asset After the Home

Pensions are frequently overlooked but can be worth more than the family home. Scottish law treats pension rights accumulated during marriage as matrimonial property.

Pension Valuation

Cash Equivalent Transfer Value (CETV)

  • Request from all pension providers
  • Shows value at relevant date
  • Usually provided free annually
  • May need apportionment calculation

Example: Total pension £150,000, but only £90,000 accumulated during 15-year marriage = £90,000 matrimonial property

Pension Options

Three ways to deal with pensions:

  1. Pension sharing order - Split pension into two separate pots
  2. Offsetting - One keeps pension, other gets equivalent assets
  3. Earmarking - Future pension payments shared (rare)

Most common: Offsetting against other assets or pension sharing

Dealing with Debts

Debts are part of the financial equation and must be addressed:

Joint Debts

  • Both remain liable to creditors
  • Should be shared in settlement
  • Consider refinancing separately
  • Get agreements in writing

Sole Name Debts

  • Check if used for family benefit
  • May still be shared if matrimonial
  • Credit cards need careful review
  • Document spending purposes

Mortgage Considerations

  • Can one party afford alone?
  • Refinancing requirements
  • Transfer of title needed
  • Early redemption penalties

Spousal Support (Aliment/Periodical Allowance)

Unlike England, ongoing spousal maintenance is less common in Scotland. The preference is for a "clean break" with capital settlement.

When Spousal Support Applies

  • Economic dependency from marriage
  • Serious financial hardship
  • Caring for young children
  • Retraining after career sacrifice
  • Age/health preventing work

Types Available

  • Aliment pending divorce - Until decree granted
  • Periodical allowance - Maximum 3 years post-divorce
  • Capital sum instalments - Lump sum paid over time

Scottish Approach: Courts prefer one-off capital payments to achieve a clean break, avoiding ongoing financial ties between ex-spouses.

Special Circumstances Affecting Division

The 50/50 starting point can be adjusted for special circumstances:

Source of Funds or Assets

If matrimonial property came from one party's pre-marriage assets or inheritance:

  • May justify unequal division
  • Depends on length of marriage
  • Consider mingling of assets

Example: Wife's £50,000 inheritance used as house deposit may justify her receiving larger share of equity.

Economic Advantages and Disadvantages

Career sacrifices or contributions can affect division:

  • Giving up career for family
  • Supporting spouse's career development
  • Loss of pension rights
  • Reduced earning capacity

Example: Husband gave up career to raise children while wife progressed - may receive more than 50%.

Destruction or Dissipation of Assets

If one party deliberately wastes matrimonial assets:

  • Gambling losses
  • Excessive spending
  • Deliberate damage to property
  • Hiding or transferring assets

The court can add back these amounts to their share before division.

Nature and Use of Property

How property was used during marriage matters:

  • Business assets needed for income
  • Special needs accommodation
  • Children's stability

Example: Family business that provides income may stay with the spouse who runs it, with compensation to other.

Agreements Between Parties

Pre-nuptial and post-nuptial agreements are considered:

  • Not automatically binding in Scotland
  • One factor court considers
  • Must be fair and reasonable
  • Both parties should have had legal advice

Weight given depends on circumstances when made and current situation.

Practical Steps to Protect Your Financial Position

📋 Gather Information

  • List all assets and debts
  • Collect financial statements
  • Get property valuations
  • Request pension CETVs
  • Document special circumstances

🚫 Avoid Common Mistakes

  • Don't hide assets
  • Don't waste money
  • Don't take on new debt
  • Don't empty accounts
  • Don't delay getting advice

✅ Take Action

  • Open sole bank account
  • Freeze joint accounts
  • Update beneficiaries
  • Check credit report
  • Seek legal advice early

⏰ Critical Time Limit Warning

You MUST make financial claims BEFORE divorce is granted

Once your divorce is finalized, you generally lose the right to make financial claims against your ex-spouse. This includes:

  • Capital payment claims
  • Property transfer orders
  • Pension sharing orders
  • Most spousal support claims

Exception: Only in very limited circumstances can claims be made post-divorce, and these are rare.

Get Financial Advice Now →

The Scottish "Clean Break" Principle

Scottish law strongly favors ending financial ties between divorcing spouses:

Benefits of a Clean Break

  • Certainty about future finances
  • No ongoing conflict
  • Freedom to move forward
  • Protect future assets
  • No future court involvement
  • Clear division of pensions
  • Independent financial futures
  • Emotional closure

Our approach: We work to achieve fair, clean break settlements that let both parties move forward independently.

How We Help With Financial Settlements

Our Financial Settlement Services

📊 What We Do:

  • • Complete financial disclosure
  • • Asset and debt analysis
  • • Pension valuations and division
  • • Negotiation with other side
  • • Draft separation agreements
  • • Court applications if needed

💼 Documents We Prepare:

  • • Financial statements
  • • Asset schedules
  • • Pension sharing orders
  • • Property transfer deeds
  • • Minute of Agreement
  • • Court financial orders

Fixed fees available for agreed settlements

Get Expert Financial Settlement Advice

Don't risk your financial future. Our experienced team will ensure you receive a fair settlement and protect your assets.

Why Act Now?

  • Protect your rights before divorce
  • Understand what you're entitled to
  • Avoid costly mistakes
  • Plan for your future
  • Get peace of mind

Book Financial Consultation

Contact Information

Phone: 0800 193 4525

Email: info@divorcescotland.scot

Main Office:
52 Main Street, Uddingston, Glasgow, G71 7LS

Our Other Locations

Glasgow South: 1 Spiersbridge Way, Thornliebank, Glasgow, G46 8NG
Glasgow Central/Westend: Woodside Business Centre, 4 Woodside Place, Charing Cross, Glasgow, G3 7QF
Edinburgh: 15 Queen Street, Edinburgh, EH2 1JE
East Kilbride: Orbital House, Peel Park, East Kilbride, G74 5PR
Falkirk: 45 Vicar Street, Falkirk, FK1 1LL
Livingston: Fairways Business Park, Deans, 8 Deer Park Ave, Livingston, EH54 8AF
Stirling: Stirling Business Centre, Wellgreen Pl, Stirling, FK8 2DZ

IF YOU WOULD LIKE TO FIND OUT MORE ABOUT HOW WE CAN HELP, PLEASE DO NOT HESITATE TO CONTACT US 0800 193 4525.

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Please check your eligibility for Legal Aid here before contacting us because we do not offer Legal Aid

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Phone Number

Main Office

52 Main Street, Uddingston, Glasgow, G71 7LS

OUR OTHER LOCATIONS


GLASGOW SOUTH

1 Spiersbridge Way, Thornliebank, Glasgow, G46 8NG

GLASGOW CENTRAL / WESTEND

Woodside Business Centre, 4 Woodside Place, Charing Cross, Glasgow, G3 7QF

EDINBURGH

15 Queen Street, Edinburgh, EH2 1JE

EAST KILBRIDE

Orbital House, Peel Park, East Kilbride, G74 5PR

FALKIRK

45 Vicar Street, Falkirk, FK1 1LL

LIVINGSTON

Fairways Business Park, Deans, 8 Deer Park Ave, Livingston, EH54 8AF

STIRLING

Stirling Business Centre, Wellgreen Pl, Stirling, FK8 2DZ