Will my redundancy money be shared in my divorce?

If you are made redundant from your job, you will often receive a financial settlement. Whether or not your redundancy package will be shared as part of a divorce settlement is circumstantial.

For example, it may depend upon whether the redundancy package came into existence during the course of the marriage or whether it was received post-separation. It may also depend upon whether the other party has a reasonable need for the monies to be shared (equally or otherwise). 

Factors considered when reaching a divorce settlement

As part of reaching a divorce settlement, a number of factors as set out law must be considered, including but not limited to, the duration of the marriage, who the children live with, the capital needs of the couple after separation and any contributions made by the parties throughout the marriage. The court will therefore determine the relevance of the redundancy package with regards to all of the circumstances in the particular case.

Ring-fencing redundancy payments

If the redundancy payment is needed to help that party financially until they are able to secure their next job, it is more arguable to say that the funds should be ‘ring-fenced’ (kept separate and not available for division). If, however, another job is secured quickly it may be more difficult to argue on that basis as the monies are not necessarily needed for that purpose and are capable of being divided between the couple.

If you have been made redundant and believe your redundancy monies should be ‘ring-fenced’ and thus treated as a non-matrimonial asset, you may wish to speak to one of our specialist Solicitors to be advised as to how this issue should be navigated.

Seek professional advice early on

If your partner has been made redundant and you are experiencing financial uncertainty and whether these monies form part of the “marital pot” it is important that you instruct a skilled solicitor to assist you in securing those monies until a settlement has been reached (and before they are spent by your spouse) to ensure that your financial needs are met post separation.

If you require assistance and advice on separating from or divorcing your partner who has been made redundant or you yourself have been made redundant then do contact our team of Family Law Specialists who are here to help.