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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.

What steps can we take to reach a fair agreement?

The four basic steps to reaching an agreement on divorce finances are: disclosure, getting advice, negotiating and implementing a Consent Order.

What is a Consent Order and why do we need one?

A Consent Order is a legally binding document that finalises a divorcing couple's agreement on property, pensions and other assets.


Trust fund

  • soulruler
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29 May 12 #333788 by soulruler
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the point here is that any potential income such as a potential income or a potential bonus cannot be taken into account in ancilary relief - Ie you can not take a section 37 injunction out against an inheritance not yet received (because the person is not dead or because the trust is discretionary and also involves other parties - in the same way as you can not take a third party debt order out against an account held in more than the debtors name).

You are on very doggy moral and legal grounds and are in danger of using up a huge amount of emotional and financial time and cost at the expense of moving on with your life and being collaborative.

Please be careful.

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29 May 12 #333792 by WYSPECIAL
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cookie2 wrote:

OK, then I would go to a solicitor with this document.

It seems a strange way to avoid inheritance tax, since the amount is below the inheritance tax threshold, there wouldn''t have been any inheritance tax anyway??!!


I think it was quite a common way of saving inheritance tax at the time. When you died you left the maximum amount allowed to a trust fund and the rest to your surviving spouse. When they die they leave their estate to the children but obviously the trust isn''t part of their estate. There is no IHT due on transfers to a spouse so in effect this gave double allowance. The law was changed some years ago so the surviving spouse gets a double allowance on their death anyway.

It would avoid quite a bit of IHT. If this person died when threshold was £232k and their spouse died soon after and that £232k was still worth £232k the tax on it would be £92,800! As in this case it would appear that the person who set up the trust died about 11 years ago that £232k may have grown quite a bit if wisely invested.

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29 May 12 #333795 by WYSPECIAL
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I don''t know a great deal about trusts but if the OP is down as a beneficary surely they have the right to ask the trustees for some benefit from the fund? If not the only beneficiaries that are ever going to benefit are the trustees.

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29 May 12 #333798 by soulruler
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As far as I understand it she is not a beneficiary of the trust she is married to a trustee and potential beneficiary and her child is a potential beneficiary. That does not give her rights to the trust or rights to harrass the courts of the trustees into paying money either directly to her, directly to her husband or directly to her child.

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29 May 12 #333802 by hadenoughnow
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The beneficiaries are "my husband, my children, my grandchildren and the spouses of any of them."


From the OP''s first post. So presumably she is a beneficiary as long as she remains married. By no longer being married, she loses that benefit.

Hadenoughnow

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29 May 12 #333806 by soulruler
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Yes I agree so from the Op point of view her option is to stop a divorce. That is a legal tactic. It will cost both emotionally and financially especially as we have now had a ruling from Lord Justice Thorpe of non fault divorce. Bear in mind the costs in everyway in these proceedings.

Mine now are in excess of £1 million way in excess of the marital or pre marital assets and all because of a small trust.

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29 May 12 #333811 by cookie2
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soulruler wrote:

Mine now are in excess of £1 million way in excess of the marital or pre marital assets and all because of a small trust.

The phrase quit while you''re behind springs to mind.

Any litigation should only be done if it''s worthwhile.

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