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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.


Implications of job loss on Financial settlement

  • Chevette
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11 May 20 #512392 by Chevette
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The remaining equity after DOT is £280k....But surely that should be split 50/50?.....I owned the house before I met my wife....Why should she get more than me??

She moved into my house then we got married....

Are you saying she could be entitled to get a bigger split of the remaining equity after DOT?.....Even if I become unemployed??

The DOT was agreed for a very good reason, to protect money I had put into the house before my wife had moved in....If its going to be disregarded by a court then maybe I should sue the solicitors that drew it up.

  • WYSPECIAL
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12 May 20 #512394 by WYSPECIAL
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Chevette wrote: The remaining equity after DOT is £280k....But surely that should be split 50/50?.....I owned the house before I met my wife....Why should she get more than me??

Because she earns less, could demonstrate a need for more than 50%, could persuade the court that 50:50 isn't fair. All sorts of reasons

She moved into my house then we got married..

..

The key point here is you got married with all the implications that brings. It isn't as if it is just a short marriage.

Are you saying she could be entitled to get a bigger split of the remaining equity after DOT?.....Even if I become unemployed??


You never know what the outcome will be if you force the courts to decide for you hence the need to negotiate and think flexibly. You know your wife, what is she likely to want? What seems clear from your posts is that she is unlikely to simply accept a 50:50 division of what is left after a significant proportion of the equity is taken out of the equation via a DOT and a large pension pot is ring fenced.

The DOT was agreed for a very good reason, to protect money I had put into the house before my wife had moved in....If its going to be disregarded by a court then maybe I should sue the solicitors that drew it up.

Did they give you a guarantee that it was legally binding on the court and would be upheld?

Even if it is upheld it doesn't mean that the rest of the pot has to be divided 50:50 and in deciding what is fair they may take into account that you already have a large chunk of money.

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14 May 20 #512412 by Chevette
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WYSPECIAL wrote,
'Because she earns less, could demonstrate a need for more than 50%, could persuade the court that 50:50 isn't fair. All sorts of reasons'

Chevette,
So shouldn't it work both ways? If I become unemployed & my Wife does not, would it work in my favour re the size of my settlement? As I would have no means of getting a Mortgage.

WYSPECIAL wrote,
'Did they give you a guarantee that it was legally binding on the court and would be upheld?
Even if it is upheld it doesn't mean that the rest of the pot has to be divided 50:50 and in deciding what is fair they may take into account that you already have a large chunk of money.'

Chevette,
My wife & I went to a solicitor some years into the Marriage to get a DOT. They told us it was legally binding, as they were Solicitors there was no reason not to trust them....This makes a mockery of the Law & English divorce laws if a court can overrule supposed legally binding agreements.

The Large 'chunk of money' was money I earned many many years before I met my Wife.....I am looking to split assets accrued during the Marriage 50/50. The DOT and a large portion of my pension were accrued many years before I met my wife.

Seems like a divorce court can remove all financial gains that you have made in your life, to the betterment of your EX, even when both worked & no kids involved. Completely wrong in my opinion. The fairest way would surely be to split assets that were accrued during a marriage 50/50.

  • Newlife55
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18 May 20 - 18 May 20 #512482 by Newlife55
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Chevette,

I think you've got some really balanced advice from WYSPECIAL.

It's important to remember that financial settlements are strongly based on needs, and factors such as contributions can come secondary after a long marriage.

Whether this ends up being contested or settled by consent a good strategy is too assess the situation from the other persons point of view.

The offer you have on the table, while can be justified, it's pretty much the worst case scenario for her isn't it? You would never be awarded a better deal than that by a judge, and by default she'd never get award less than that.

Whats the minimum you could offer her to ensure she is housed? To me that's the cost of a 1 bedroom house. £167k is it? Plus a little bit more she could argue for setting up home £170- £175k?

That's probably a more realistic best case scenario.

I would certainly argue against her needing £250k for a 2 bedroom property.

With regards to her potentially losing her job, you could argue that in any event it wouldn't affect her needs (and this equity demands). She is already housed and wouldn't be paying a mortgage and therefore could manage on a lower income should that happen. It would only be temporary anyway. Nominal Spousal Maintenance could be the security for this should it be a concern.

The same goes for if you lose your job.
Last edit: 18 May 20 by Newlife55.

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19 May 20 #512484 by Chevette
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Thank you Newlife55,
I quite agree the advice from WYSPECIAL has been very good and is greatly appreciated, as is yours.
Also thank you for the suggestion of looking at it from the other persons point of view.

I would say she’s done very well considering she came into the marriage with nothing & I had all the assets!….But I realise the current Divorce laws do not see it that way.

A one bedroom flat in our area would start at around £170k. I did offer her a cash settlement of £105k and to keep the Buy to let flat which is worth £185k and has equity of £80k. So a settlement worth £185k to her. She would not have lived in the flat as it is in a different area, but it would have paid her a net profit of £300 per month & the £105k would have been a good deposit on another property… This would have enabled me to keep the family house that I owned before meeting her….but she declined it.

I feel in a very difficult situation at the moment as we will both either be sacked or put on a new low paid contract, in which case our earnings will be exactly the same.
The new contract is so low that it may be worth just taking the redundancy money and looking for a new job.

I also thought that it would not do my divorce case any harm by being unemployed, especially as I will be the one losing the most financially as I had all the assets to begin with.

Once again thanks so much for your inputs

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