A well respected, award winning social enterprise
Volunteer run - Government and charity funded
We help 50,000 people a year through divorce

01202 805020

Mon/Fri 9am-6pm       Sat/Sun 2pm-6pm
Call for FREE expert advice & service info


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.


Work beyond retirement age?

  • MarcusFox
  • MarcusFox's Avatar Posted by
  • Premium Member
  • Premium Member
More
14 Jun 20 #512846 by MarcusFox
Topic started by MarcusFox
Hi, I am a teacher and I receive my pension in a couple of years when I am 60. I have always planned to retire at 60. My stbx's solicitor is arguing I can work beyond 60. There is enough equity and pensions for us both to retire at 60 (my stbx also has a defined benefit pension with NRA age 60). She is three years younger than me. Can anyone give me an indication of how a court would view this argument please?

  • LittleMrMike
  • LittleMrMike's Avatar
  • Platinum Member
  • Platinum Member
More
27 Jun 20 #513032 by LittleMrMike
Reply from LittleMrMike
My inclination would be to resist.

Retirement of the payer does not automatically end spousal maintenance ( unless the order otherwise provides ) but I most cases I have encountered end on the retirement of the payer.

In my case I still had to go on paying after retirement, but obviously at a much reduced rate.

The idea that a payer should have to continue working after
retirement is a novel one and I doubt if it would succeed, but
with the matrimonial Courts one never knows.

LMM

  • MarcusFox
  • MarcusFox's Avatar Posted by
  • Premium Member
  • Premium Member
More
27 Jun 20 #513037 by MarcusFox
Reply from MarcusFox
Thank you for your reply. Novel is one word to describe it.

  • LittleMrMike
  • LittleMrMike's Avatar
  • Platinum Member
  • Platinum Member
More
28 Jun 20 #513040 by LittleMrMike
Reply from LittleMrMike
By way of elaboration sir - - - -

There are two events that automatically end spousal maintenance They are

The death of the payer or the recipient ;
The re-marriage of the recipient.

Retirement of the payer is not, in itself, a ground for the total discharge of the order, but it almost invariably calls for a reduction in the amount payable.

I do not think the Courts will be too eager to get themselves in the kind of argument as to whether it is reasonable for you to retire or not. That would really be opening Pandora's box.

So you can certainly expect a reduction, I think, though, that a complete discharge may be optimistic. It is more likely to be a reduced figure, which may be purely nominal, but which could be
increased if your circumstances take a sharp turn for the better

The Courts don't like a total discharge because, quite simply , it is
irreversible.

LMM.

  • hadenoughnow
  • hadenoughnow's Avatar
  • Moderator
  • Moderator
More
28 Jun 20 - 28 Jun 20 #513046 by hadenoughnow
Reply from hadenoughnow
Is spousal maintenance an issue here?

Is there a big disparity in your incomes?

If one party on a higher income paying SM is a little older and retires sooner thus stopping SM, there can be an income gap for the party who cannot take the pension yet. This needs to be considered and addressed even if there is an arrangement for equality of income in retirement. The way to address it may be for paid work of some sort to be continued for a period. There may also be a way to release cash from a pension.

NB if you propose to retire before the state retirement age, that would be seen as early retirement. A court will expect both parties to maximise their incomes (ie through working) unless there are specific reasons ie health why they would not be in a position to do so.

Hadenoughnow
Last edit: 28 Jun 20 by hadenoughnow.

  • MarcusFox
  • MarcusFox's Avatar Posted by
  • Premium Member
  • Premium Member
More
28 Jun 20 #513048 by MarcusFox
Reply from MarcusFox
Hello Hadenoughnow, thank you for your reply. Spousal maintenance is not an issue. It is more a case of splitting the equity of the house and how my retirement age affects my mortgage capacity. There is a big disparity in incomes (I earn a lot more £50,000 v £20,000). As it stands my stbx will receive around £210,000 v £170,000 for me retiring at 60. There is one child (age 14) who will live with her, along with her 23 year old son who is working. She will have plenty of money to buy a house (we live in the midlands) and live mortgage free and there is plenty of pension to offset if she wants more equity (she wants a lot more than £210,000). I am wondering how a court would see her argument that I should work past 60 in order to give her equity which exceeds her needs.

  • hadenoughnow
  • hadenoughnow's Avatar
  • Moderator
  • Moderator
More
28 Jun 20 #513049 by hadenoughnow
Reply from hadenoughnow
Given the difference in incomes, I would expect her to be provided with funds to be mortgage free if possible in a two bed property. This would be seen as being in lieu of SM. On this basis there could be a Clean Break. NB 2 bed is the strict need for each of you.

I would also expect to see equality of pension income, at least from the pensions accrued during the marriage/cohabitation. A court may potentially take the whole pension pot into account especially if she has little or no pension of her own.

If that leaves you needing to keep working at least part time until normal retirement age, I suspect that is what the court would expect you to do.

Hadenoughnow

Moderators: wikivorce teamrubytuesdaydukeyhadenoughnowTetsSheziLinda SheridanForsetiMitchumWhiteRoseLostboy67WYSPECIALBubblegum11