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What are we each entitled to in our divorce settlement?

What does the law say about how to split the house, how to share pensions and other assets, and how much maintenance is payable.

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What would you do ?

  • Ladybelle
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01 Feb 08 #12566 by Ladybelle
Topic started by Ladybelle
I now have 4 possible outcomes for my future. If these were offered to you - for those of you who are going to end up paying SM for your x or maybe some of you have had similar choices yourself that you have fought for ?
I have just come to the conclusion that there is no way I can move, with my agoraphobia anyway, but the extra stress and there is no houses available locally for me, and why should I have to go into a small place or even council, I want to stay here.

So

Option 1 - x2b pays SM for the mortgage for 22 years ( approx total £150,000), share in pension.

Option 2 - We sell house - split 70 - 30 in my favour - he has to pay SM for my rent - approx £800 - or even if lower - a lifetime commitment (incalcuable)- still have a share in his pension.

Option 3 - Sell house and split 50 - 50 - he gives me £150,000 from his pension fund as a lump sum - I can then buy a house. Clean Break of sorts.

Option 4 - I keep house FMH - he gives £76,000 from his pension fund to pay off mortgage. He then keeps remainder of all his pension entitlement and its a total clean break and he then has all his salary for ever. No monthly SM for me.

He would get no money himself now BUT if we agreed on this, there wouldnt be hardly any divorce fees to pay if it could be amicable.

If he doesnt agree - both of us will end up with a huge bill and I could get awarded it in court anyway.

Would any of you agree to any of these suggestions if it's you having to pay ? Or has anyone had similar things happen to them ?

  • DownButNotOut
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03 Feb 08 #12712 by DownButNotOut
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Annie,

This is an important decision. And you need to consider it carefully.

So please only take my thoughts as one input...you should probably seek professional legal advice also.

Ok...lets try and think this through.

Lets compare each of the others to Option 1:


Option 4.

I would have to say option 1 is better (either way you get the house paid off mortgage free after 22 years). But with option 1 you also get a pension share.
The one thing you should negotiate to 'add' to Option 1 is for him to insure his life (with you as beneficiary) for amount enough to pay off mortgage. Cos otherwise if he is run over by a bus you lose out in a big way.

Option 2.

Well here you have cash instead of equity in a house. The danger is if you spend the cash over next 5 to 10 years...you will have much less of a nest egg for retirement. You would need to invest the cash...but what in? Something better than property? Not so sure.
Note that in this option you also need to get him to insure his life to protect the rental payements you are relying on.

Option 3.

I cannot really do the maths on Option 1 vs Option 3 cos you do not say how much equity is in the house. And how much pension share you get in Option 1.
Are you getting 50% of house equity and 150K lump sum in option 3?? WHat does this total to.


OK ....so I had a quick stab at it but.....
you need to be more specific about how much you are getting in each option....you were a little fuzzy in the post which prevents me actually pointing you in the right direction.

  • IKNOWNOW
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04 Feb 08 #12750 by IKNOWNOW
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Sorry, don't know your story.

Other relevant questions to ask so that people can make a more structured answer.

How long were you married?

Do you have children?

With your agoraphobia are you classed as disabled and are you in receipt of disability benefits due to the fact you are unable to work?

Just think the answers to these questions may enable more people to post their opinions.

Regards, Sarah

  • Ladybelle
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04 Feb 08 #12753 by Ladybelle
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I have 2 children who live at home but are grown and contribute. I do work part time, I have only got the tax credit since he left as I am single. I get DLA lower amount for the agoraphobia as I am unable to travel to unfamiliar places alone. We were married for 25 years.
I cannot pay all the bills, I am only able to manage now with him paying mortgage, and children's contributions and my benefits. When he walked out I wasnt on benefits, I have only just been granted them and still actually waiting for the first payment.
I cant lose this house. Nothing has been set about split numbers - ie whether it's 50 50 etc.
I dont know if a sol will say I wont get anything. I know now that he cant just take a lump sum from his pension until he retires so I guess Option 4 is out.
He has a civil service pension which is worth about £300k. We have £70k equity in the house, but a long mortgage still - 22 years.

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04 Feb 08 #12754 by Ladybelle
Reply from Ladybelle
DownButNotOut wrote:

Annie,

This is an important decision. And you need to consider it carefully.

So please only take my thoughts as one input...you should probably seek professional legal advice also.

Ok...lets try and think this through.

Lets compare each of the others to Option 1:


Option 4.

I would have to say option 1 is better (either way you get the house paid off mortgage free after 22 years). But with option 1 you also get a pension share.
The one thing you should negotiate to 'add' to Option 1 is for him to insure his life (with you as beneficiary) for amount enough to pay off mortgage. Cos otherwise if he is run over by a bus you lose out in a big way.

Option 2.

Well here you have cash instead of equity in a house. The danger is if you spend the cash over next 5 to 10 years...you will have much less of a nest egg for retirement. You would need to invest the cash...but what in? Something better than property? Not so sure.
Note that in this option you also need to get him to insure his life to protect the rental payements you are relying on.

Option 3.

I cannot really do the maths on Option 1 vs Option 3 cos you do not say how much equity is in the house. And how much pension share you get in Option 1.
Are you getting 50% of house equity and 150K lump sum in option 3?? WHat does this total to.


OK ....so I had a quick stab at it but.....
you need to be more specific about how much you are getting in each option....you were a little fuzzy in the post which prevents me actually pointing you in the right direction.


I dont think he will agree to anything thhough without being told to by a judge. He wants to sell the house, I dont. I have to stay here because of my agoraphobia. I cant afford to stay here unless he pays, but I certainly cant afford to move. Do you think a judge is likely to make him pay and let me stay here as he ends up with just some of his pension ? as the pot would be his pension 300k, and the house - equity 70k. I think I might get a bigger share because of all the criteria, but I dont know hence why I am so scared and not sure what to do.

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04 Feb 08 #12759 by Fiona
Reply from Fiona
1&2 What is his income, how long before he retires, would he be seen to have the ability to pay SM?

3&4 Pensions aren't a liquid asset and can't be cashed in like other forms of savings and investments. They only pay out a lump sum as % (usually max 25%) of the fund on retirement and the rest used to provide income. How long before reaching retirement age?

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04 Feb 08 #12777 by gone1
Reply from gone1
Fiona wrote:

1&2 What is his income, how long before he retires, would he be seen to have the ability to pay SM?

3&4 Pensions aren't a liquid asset and can't be cashed in like other forms of savings and investments. They only pay out a lump sum as % (usually max 25%) of the fund on retirement and the rest used to provide income. How long before reaching retirement age?


The minumum age for A day pension draw down is 50. Its 25% tax free cash and usualy you have to accept a pension as well. You cant just take the 25% and leave the rest. In effect you are starting your pension. If you are 50 and do this you are effectivly wrecking your pension.

I had no choice but to do this as I was 12K short of my lump sum payment. So I took 25% which amounted to about 13.5K. I also recieve a modest sum each month. Chris.

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