My wife previously lived with someone for 16 years without ever marrying. They then split up and she got her half share of the value of the house at the time having paid towards it as well as household bills throughout those sixteen years. They also had an endowment which had another nine years to run and which is just about to mature. How much of the endowment policy payout is she entitled to as life assurance element of the policy was current up to now and she paid her contribution towards the endowment policy for 16 years, but has not paid anything towards the endowment policy for the last nine years.
she will haveto try to reach agreement with her ex, and to make sure that the company is aware tht they are living separately and to check they will requrie *both* signatures before paying out any money.
On the face of it, the simplest way to do it would be to do it pro-rata. She contributed for 16/25 of the time the policy was running, so she should get half of that proportion of ots value.
e.g. - maturity value of £25,000 - she would get £8,000 (half of the proportion built up jointly) her ex would get £8,000 (1/2 proprotion built up during relationship) plus £9,000 (proportion built up when he was the sole contributor.
It gets very complicated to do it any other way - if you look at the value at the time of separation, you then have to calculate how much of the subsquent increase was due to the return on that initial investent, (''passive growth''), and bonuses on that initial amount, so simply saying, ''it was worth £10,000 when we split so you get £5,000 is unlikely to be fair
Thank you for your reply. That seems the best way to do it and all we have to do now is get him to agree the split in percentage terms! If he doesn''t agree to this I can see it going to court to be settled!
I have a similar problem with an endowment. I took it out 19 years ago when i bought my first flat. Then transfered it to my current mortgage when my STBX and I bought his house. We have been married for 7 years at the date of separation.
Her solicitor has requested a surrender value rather than its maturity value. I am assuming that she would be entitled to a share equal to half of 7/19 of the surrender value. This to be used as offsetting of the house equity.
At the moment I dont know what that surrender value is, though somewhere in the £10000 region would being generous, but is a good ballpark figure and nice round number.
I believe now that this endowment is going to be considered a joint marital asset, in full.
Ok that is fair enough I suppose. It has been valued at £11564 for surrender. I dont know whether I am better to surrender it and pay her the monay that way or to keep it going and hope that there is a good terminal bonus on it, which is doubtful.
If I do keep it going for the next 6 years I am likely to get maybe £15000, which would be useful I have no doubt. But then again I could use the half share to lower the mortgage on a new house. It could make the LTV ratio better for me allowing me a lower interest rate.