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Financial settlement in an IVA

  • Mollydoll
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6 months 4 weeks ago #511038 by Mollydoll
Financial settlement in an IVA was created by Mollydoll
Hi, I'm nearly 18 months into an IVA ( end 2024) paying back borrowing from trying to raise children with insufficient support and renting privately- although working full time.
After 6 years of [url=Resources/Library/Cohabitation-and-Separation_s33_m1852.html ]separation[/url] my ex is suddenly keen to divorce & settle by May (marriage plans?/new job - leaving police pension plans- Unsure) but I will have to declare any payment I receive into the IVA - rightly & will likely end up no better off.
Could I divorce now & delay the financial settlement?
What would be the risks in doing so?
Thanks :)

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  • Vigorate
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6 months 3 weeks ago #511079 by Vigorate
Replied by Vigorate on topic Re:Financial settlement in an IVA
It depends on what the financial settlement is likely to be...

You could divorce now and agree to wait to sort the finances later or divorce now and agree the the financial settlement in a consent order specifying when certain actions, such as sale of a house, lump sum payments, etc, become due.

I do not think a pension sharing order would affect the terms of an IVA as this is not \"income\" per se, and you would be able to take a lump sum out at 55 years old... Child maintenance does not count as income under an IVA I believe but you would need to check this.

If you post more details on ages, dependents, what the financial settlement is likely to include and amounts then someone may be able to comment further.

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6 months 3 weeks ago #511099 by Mollydoll
Replied by Mollydoll on topic Re:Financial settlement in an IVA
Thankyou for this information, it seems the plan may work.
My children are currently 10&15 & live mostly with me.
Maintenance has increased & with this & manageable payments to pay back borrowing things are ok for now.
The lump sum offered is 60k to top up my own pension which would be available from the same time - 55, although I'm likely to carry on working,& maintenance had been offered at the same level up to this point.
My main concern is housing - renting is fine while I'm working but not long term. We were married for 12 years together 15 in total, I left the marital home thinking I had no choice, something I've regretted ever since but 60k will not buy me even a very small home & I'll be at an age where mortgage options are limited if there are any at all.
I'm presuming that if the details in a consent order look unfair - (& I've never been able to get full disclosure of assets)- they won't be agreed.?

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6 months 3 weeks ago #511108 by Vigorate
Replied by Vigorate on topic Re:Financial settlement in an IVA
It is possible to settle an IVA early if you get financial settlement money/cash but remember the IVA stays on the credit report for 6 years after it has ended so getting a mortgage is more difficult.

If you are many years away from 55 years old this may not be a big deal. Its also possible to return to the former martial home till the kids are 18 if you can afford the mortgage but it all depends on what is fair.

Also difficult to know if 60k to top up the pension is fair without more details on the total asset pot. Is it a pension sharing order? If the money is from a house sale would it be enough for a deposit and an affordable mortgage similar to renting?

If the consent order is not fair it will not be approved by the court.

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6 months 3 weeks ago #511121 by Mollydoll
Replied by Mollydoll on topic Re:Financial settlement in an IVA
I've just turned 50 so time is against me!, as well as credit ratings,
Ex-s pension will be considerable as he's a senior police officer, & he is keen for me to accept the offer made rather than disclose it's value, only disclosing it's value 6 years ago when we separated saying I shouldn't benefit from anything since then- promotions etc, & if my needs are met taking that 6 years out of the equation that's fine, but I did continue raising the children,! Working full time without the time or opportunity to progress further in my career which I think is valid.
Maybe a 12 marriage is not considerable but after contributing in various ways I'm sure that should not leave me with no home.
I'll pursue the options you mention- Thankyou

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