This is covered in Section 10 – Family Law (Scotland) Act 1985.

When a marriage or civil partnership ends in Scotland, the law sets out how the couple’s assets should be fairly divided. Section 10 of the Family Law (Scotland) Act 1985 explains how matrimonial (or partnership) property is valued and shared.

⚖️ What Is “Fair” When Dividing Property?

Under Scottish law, fairness usually means an equal split (50/50) of the net value of matrimonial property.
But a different split can be justified if there are special circumstances (see below ⬇️).

🏠 What Counts as Matrimonial Property?

The law defines matrimonial property as things that:

• 🛋️ Were bought before the marriage/partnership for use in the family home.
• 💷 Were acquired during the marriage/partnership (except gifts or inheritance).

This includes:

• The family home.
• Furniture and household items.
• Joint savings or investments.
• Cars or jointly acquired assets.
• Pensions and life insurance (partially – see below).

If the family home was bought in the sole name of one spouse or partner, and the parties intended it to be used as the family home at the time of purchase, then that property will likely be deemed to be matrimonial property.

⏰ The relevant date for valuing property is usually:

• The date the couple stopped living together (separated). Parties can be separated and living under the same roof.
• Or the date the divorce or dissolution papers were served, whichever is earlier.

💼 What About Debts?

Debts are also taken into account. The value of property is reduced by:

• Any debts linked to the matrimonial property.
• Debts taken on before or during the relationship that are still unpaid at the relevant date.

🔁 Special Rules for Pensions, Life Policies & Compensation

Some parts of:

• 🧾 Pension benefits
• 📜 Life insurance
• 💵 PPF compensation (from the Pension Protection Fund)

…are counted as matrimonial property, but only the portion earned during the marriage or civil partnership.

📌 “Special Circumstances” That Can Affect Division

The court may change the 50/50 split if there are valid reasons. These include:

• 🤝 An agreement between the couple on who owns what (Pre-Nup).
• 💰 One party used money/assets they already had before marriage.
• 💸 One partner sold or gave away assets unfairly (called “dissipation”).
• 🏢 Property used for business or hard to sell.
• 🧾 Costs involved in transferring or valuing assets.

✅ Summary for Divorce Clients

If you’re going through a divorce or dissolution, Section 10 tells you how your shared assets are valued and divided. In most cases, a 50/50 split applies — but there are exceptions.

🧑‍⚖️ Need help working out what you’re entitled to?
At XK Family Law Solicitors, we help clients across Scotland secure fair financial settlements.

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