Will I suffer financially in a divorce for being a ‘stay at home’ parent?

Q. My husband owns a successful business. Our marriage has been unhappy for several years but I’m really worried about separating because I don’t know how I would cope financially on my own with our children.

I’ve not worked since our children were born and they are now eleven and nine years old.  We have been married for fourteen years.  When our first child was born we agreed that I would not return to work and would look after our children and our home. As a result, I do not have an income and do not have savings in my own name. My husband has a significant pension of his own and savings. I feel that we need to separate but I feel trapped by the financial situation.

A. When the court considers a division of financial assets in a situation such as this the court’s first consideration will be given to the welfare of children of the family.

The court will ensure that the children’s financial needs are met and assets would be divided in such a way as to ensure that this is the case.

By way of example, often the matrimonial home will be retained by the spouse who will have primary responsibility for caring for the children. If it’s necessary for the matrimonial home to be sold then the proceeds of the sale will be divided in a way that ensures appropriate accommodation can be purchased for the benefit of the children.

When a couple divorces after many years of marriage, the court will divide the parties’ assets between them, even in cases where only one of the spouses has been earning an income. The court will take into account contributions made by a spouse in caring for the children and the home. The starting point is an equal division of the couple’s assets.

If one spouse has cared for the children and the home, and as a result does not have their own income, then the other spouse could be required to pay spousal maintenance. This would be paid in addition to child support maintenance.

If it can be demonstrated that one spouse has suffered a reduction in their own capacity to earn an income by spending many years caring for the children and the home then they may also receive an increased share of the assets of the marriage to compensate them for this.

In relation to pensions, these will be shared between the spouses. If one spouse has a significant pension and the other spouse does not then the court may make a pension sharing order, transferring a percentage of the pension to a fund for the spouse who does not have pension provision.

Other capital assets such as savings and investments will also be divided between the couple, irrespective of which spouse holds these.

In the situation described above, the court would be keen to ensure that the financial needs of the children were met first. The court would then ensure the assets of the spouses were divided fairly between them.

This division would not necessarily be equal due to the factors described above. The spouse who has day-to-day care of the children may receive more than half of the assets of the marriage if it can be demonstrated that their financial needs are greater.

For more information, or to discuss any aspect of family law, contact Janine Hutson on 01772 258321 or at janine.hutson@harrison-drury.com