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financial resolution

  • skid112
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1 year 5 months ago #506284 by skid112
financial resolution was created by skid112
Hi
i have recently split from my wife of 30 years and we are trying to come to an agreement.
we have, including house and pensions, over £1.3m in assets. The house has just sold so that is sorted out. We both have savings, ISA's shares etc, our children are 29 and 26, the youngest still lives at home. Both of us work, with a big difference in salaries, her take home is 1300, mine 6700. I have moved out into rented accommodation, she contributes 500 a month i pay for the rest, mortgage, household bills etc. plus my own costs.
She is saying that she is entitled to 60-40 asset split, plus I have to pay her money each month. With the house sold she proposes that i receive around 525000, I have 400,000 in pensions which means i am living in rented forever. Is this possible? Will i have to continue to pay after divorce?

thanks

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  • .Charles
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1 year 5 months ago #506288 by .Charles
Replied by .Charles on topic Re:financial resolution
Can you clarify the values of the cash and pension assets? Are you receiving £525k cash and the pension or is the £400k pension part of the £525k?

Charles

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1 year 5 months ago #506290 by skid112
Replied by skid112 on topic Re:financial resolution
Hi There,
I have £400k in pensions, I also have around 50k in ISAs. What she is proposing is that I have cash from the house sale to make this total up to around 525,000. So cash about 75,000

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  • .Charles
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1 year 5 months ago #506294 by .Charles
Replied by .Charles on topic Re:financial resolution
There isn't enough information to go on I'm afraid.

For long marriages the starting point is 50:50 unless there is good reason to depart from the approach. There is no 'entitlement' to 60:40 unless a court makes such an order.

As for how assets are split, it would be an error to value a pension as cash. For instance if there was cash of £500k and a pension of £500k - giving the cash to one party and the pension to the other is not an equal division.

It might be appropriate to make a cash adjustment for pensions - this is pension offsetting - but it would have to be right for both parties. Expecting you to have all of the pension and little cash is unfair as you can't buy a house with a pension fund and you can't live in a pension fund!

It might be appropriate for a fairly equal division of cash, a pension share and a limited amount of maintenance - it's difficult to say. The more complex the assets, the more permutations of settlement are available to you. It would take an experienced family finance lawyer to reveal the permutations 'with legs' and make them work for both of you.

Charles

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  • WYSPECIAL
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1 year 5 months ago #506302 by WYSPECIAL
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Priority will be housing you both.

How much will a one bed home cost as that is what you each strictly need?

How much are you currently paying towards fmh as it sounds as if you are paying towards the living costs of your ex plus a 26 year old adult?

Post details of your ages and values for each asset type, ie property equity, savings and pensions as some are more liquid than others depending upon age and as you are realising you can't live in a pension.

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1 year 5 months ago #506379 by skid112
Replied by skid112 on topic Re:financial resolution
ages are me 58, her 62.
The fmh, I presume, former matrimonial home, she contributes £500 per month. The total cost including mortgage is around £2500.
Assets, me
pension 387k
ISA 42k
Savings 24k
Shares and paintings 3200
House sold for 695k, mortgage 131k, costs 10k net 554k = 227k

Her
Pensions, 200k
Savings 75k
ISA 54k
House 227k
Shares 3k
Car 13k
not sure if jewelry counts as she is claiming it as a gift whereas my paintings do (2500)She also says the car should not count as its a way for her to get to work

One bedroom homes come in around £180k.

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1 year 5 months ago #506384 by Rickoshea
Replied by Rickoshea on topic Re:financial resolution
On the assets posted above you currently look to have c. £125k additional assets. Both of you are over 55 and in theory able to access the pensions but given your wifes age and closeness to retirement she has little chance to enhance her pension whereas you are still able to for a few more years and your substantially higher earning potential. With the disparity in income it certainly looks feasible that you could offset more of the house assets against your pension especially if both of you are able to meet your housing needs of a 1 bed place.

probably comes down to whether you want to try for a clean break or are happy to pay an income (potentially whole of life given ages) going forward.

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