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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.


Do you need help sorting out a fair financial settlement?

Our consultant service offers expert advice and support to help you reach agreement on a fair financial settlement quickly, and for less than a quarter of the cost of using a traditional high street solicitor.


Is an inheritance included?

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02 Aug 12 #346887 by pgh
Topic started by pgh
Hi going through the financials in a very non-collaborative process - in which I am doing all the moving and giving but getting nothing back!
My question is this my stbx is coming into an inheritance it is still be processed so she hasn''t received it yet.. Its worth £100k - I don''t want any of it as it doesn''t feel right. But when it comes to splitting the assets her solicitor says it is ring fenced and should not be considered as an asset on her side- So of the 450k equity in the house they want me to give her 350k so she can buy a house with no mortgage (she works and earns £27,500 p.a.). That would leave me with a 100k cash - now going into all the financials is tedious but because I have a large pension pot they are trying to equate that in the same terms as equity in the house which clearly it isn''t.

Now there is no reason why she couldn''t get a small mortgage if we split the equity 50/50 as she still has 100k in the inheritance. But her side is playing hard ball and want to get a joint counsel decision as to whether the inheritance should be included or not?
If it were a case of there being less money in the pot then of course it would be included but what I am arguing is that any mortgage she has will be short lived when her inheritance comes though - is that a viable argument?

  • LittleMrMike
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02 Aug 12 #346892 by LittleMrMike
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In my opinion the inheritance should be taken into account to some extent. As you say, she may well be allowed to keep it, but need comes into the equation too. Both of you need somewhere to live.

You mention her earnings but not yours. Well, it''s not sn unimportant consideration. But a pension pot is not treated in quite the same way as other assets as it is the right to receive an income at a future time, and can''t be equated with cash in the bank.

Can I assume there are no dependent children ?

LMM

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02 Aug 12 #346896 by pgh
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Sorry LittleMr.M

there are two children aged 6 and 9 boy and a girl we were married 10 years - I earn £48k so i know I can get a mortgage as well and was factoring that in.
But I need a house of comparable size to whatever she gets to expect me to provide a house mortgage free is taking the p... I''m not a millionaire and was prepared during negotiations to hand over my savings so that she would have £251k (plus her inheritance) but that was rejected because her lawyer felt that she should have no mortgage. Now you can see what I mean when I say I''m doing all the giving and getting nothing back.

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02 Aug 12 #346897 by hadenoughnow
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Is the intention that the pensions should also be shared? Or is your pension to be offset against the larger share of equity that she would get?

If there is enough money (plus mortgage ability) to house you both, a pension share become much more likely. Do you have a CETV for your pension?

Also ages may be important when it comes to working out the best option for pensions.

Hadenoughnow

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03 Aug 12 #347153 by pgh
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thanks hadenoughnow

There was meant to be a pension share but her side have now got greedy and want 3/4 equity leaving me facing a mortgage of at least 159k on my own. My CETV is for 380k hers is 75k we are both 47 and she is only working 3/4 time at present and still earning £27,500?
A larger mortgage in my opinion does not equate to fairness as it leaves less cash for me to spend on the kids etc. I don''t want the inheritance but it has to be recognised as an asset - it would be similar to me wining a million quid and saying its there it does exist but its not an asset.

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03 Aug 12 #347159 by hadenoughnow
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There are 2 children so your respective need is a 3 bed house apiece.

How much would that cost to buy? I think this is a key figure here.

As far as salaries go, your net is currently only about 1k more than hers (and may be even closer depending on pension contributions. By the time you pay CM and take child benefits and tax credits as a single parent into account, she will have a larger net income than yours.

It would seem inappropriate for you to be shouldering the burden of a large mortgage as well.

If the marriage is just 10 years then it would not seem entirely fair that your pension pot is shared 50:50. As there would appear to be enough to house you both, I think a pension share is likely. With a pension the size of yours you may want to get an actuary to work out a split perhaps based on the years of marriage/cohab.

I am at a bit of a loss to work out why the equity should not just be split 50:50 giving you 225k apiece. Given that she has an additional 100k to bung in then surely she can house herself mortgage free/small mortgage for that?

You mention your savings ... these too are part of the marital pot. What sort of money are we talking about?

Hadenoughnow

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03 Aug 12 #347189 by MrsMathsisfun
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Are the pensions both money purchase or defined benefit.

If they are different you definitely need a actuary to equalize them especially if hers is defined benefit and yours a money purchase because the difference might not be aware as much as it appears.

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