Breadwinner or homemaker in divorce. Does it matter?
Contact
Yael Selig
Table of Contents
Breadwinner vs Housewife Divorce Rights
When it comes to deciding how wealth is split in a divorce, English courts do not discriminate based on your role within the family.
A Spanish court hit the headlines recently after it ordered a businessman to pay his ex-wife €205,000 – just over £182,000 – in recognition of her 25 years as a homemaker. The judge calculated the figure based on the annual minimum wage she would have received throughout the couple’s marriage.
Mrs Moral acted as a stay at home mum
In this case, the couple has entered into a separation of property agreement, similar to a prenuptial agreement, which specified that whatever each partner earned was theirs alone. Since Mrs Moral looked after the family and worked as a housewife during the couple’s marriage, and Mr Moral was the sole breadwinner, the agreement would have left Mrs Moral without access to the couple’s wealth after they split. The judge decided this would be financially abusive and ordered the record payout.
While the case was decided in Spain, it puts into sharp focus the issue of financial settlements in England. How are financial settlements determined here? And what happens to the financially weaker spouse who made sacrifices during the marriage, such as acting as a stay at home mum?
What is a housewife entitled to in a divorce?
Equality is the starting point for any financial settlement in England and Wales. This means that each party should receive a fair share (not necessarily equal) of matrimonial assets such as money, property, investments, pensions and business assets. If both parties earn a similar amount and make similar contributions during the marriage, the court will likely order an equal split.
In reality, however, it is rarely a 50-50 split. The court’s main aim is to achieve fairness and ensure that one party does not profit at the expense of the other due to their money-making abilities. When deciding what’s fair, the court will take into account things like:
- Length of the marriage
- Each party’s income and financial needs
- Standard of living during the marriage
- Time out of the workplace
- Age and earning capacity
- Any non-financial contribution made by either party, such as one partner staying at home for childcare.
Different rules apply to inherited wealth and pre-existing trust funds. In those cases, assets are much less likely to be divided equally.
Homemakers are the same as breadwinners in UK Divorce
When assessing each party’s contribution to the marriage, the court has made it clear that homemakers stand on equal footing with breadwinners. Stay-at-home parents may not contribute to the family’s bank account, but they do make an equal contribution to the welfare of the family, and as such as considered an equal contribution.
The result is that a stay-at-home spouse or financially weaker partner could be entitled to receive more of the other partner’s income or assets if this would make their settlement fairer. Often, the financially stronger party will be ordered to make ongoing spousal maintenance payments in order to meet the other party’s needs.
This approach is more generous towards the financially weaker party than many other jurisdictions, which make financial settlements based on financial contributions alone.
The court’s decision when settling a financial dispute will always depend on the individual case. For example, a 50-year-old woman who has not worked for the duration of her 30-year marriage may struggle to find a job and support herself financially. She might expect to receive a larger share of the matrimonial assets than a 25-year-old who earns a similar income to their spouse and could easily start again with a reasonable salary.
Final words
The recent case in Spain serves as an important reminder that financial settlements after a divorce should never be about money. It is important to consider all the contributions each partner has made, both financial and non-financial, and ensure that these are taken into account when deciding what’s fair. After all, a marriage is about two people working together – not one benefitting from the other’s sacrifices.
Also see:
Contact Osbornes Law
If you are interested in understanding your rights in a divorce, whether you’re the breadwinner or the homemaker, contact our financial settlement solicitors for advice. Call 020 7485 8811 or fill in the contact form below.
Share this article