The photodissociation of diphenylmethyl chloride (DPMCl) can lead to the formation of radicals or ions depending on the environment. We use first-principles molecular dynamics simulations to study the photochemistry of DPMCl in the gas phase and in aqueous solution. In the gas phase simulations the photoexcitation leads to the formation of a radical pair. For the photoreaction of DPMCl in a polar solution a two-step process is observed: the actual photoreaction proceeds diabatically and leads to the formation of a radical pair. This radical pair is subsequently transformed into an ion pair via an electron transfer reaction. The ultrafast process explains the experimentally observed formation of ions on a sub-picosecond timescale.