What are capital needs in divorce?

Capital needs are distinct from income needs, which relate to ongoing expenses and living costs. Capital needs refer to the one-time financial requirements that each party needs to establish themselves independently after a marriage or civil partnership has ended.

A primary capital need is housing, which includes the ability to secure suitable accommodation. Other capital needs may include furnishings and white goods for a new home, a car or other transportation expenses, paying off debts, and the cost of further education or retraining.

Capital needs can also include a lump sum to establish savings or create an emergency fund.