My partners solicitor is suggesting due to the disparity in pensions he should offer a larger than 50% share of the equity to ofset rather than offering a pension share.
The rational behind it (if you can call it that) is that his stbx only works part time, therefore her mortgage potential is lower and therefore she needs the cash more...she has no disibility, she simply does not fancy working full time.
My partner lives with me in a home I own, of which he has no financial interest in. He feels he is in the same situation as her in regard to wanting to secure his future and wants to either buy into my property or buy something of his own that he can rent out.
Do you think he should stick to his guns and offer 50% equity and 50% pension share or do you think the courts might award her more cash simply due to her self enforced situation?
There are no dependents from the marriage as both children are over 20, as an aside we have one on the way.
Exactly our point, why should she get the cash now and he have to wait for the pension when they both have the same earning potential, the only difference is that he works full time and she does 16 hours a week.
We feel the solicitor is just looking for an easy solution....and that is my partners solicitor.
It isn''t that straight forward. The solicitor may well be correct. He/she will be working day in day out with the local courts and should have experience how the judges locally tend to view matters.
Earning potential is one factor. Lifestyle, the nature of the relationship and the way the marriage was conducted are others. If the wife worked part-time during the marriage when resources allow a court may not expect her to work full time after, particularly if she is 50+ and nearing retirement.
Also the main considerations in a divorce settlement are the finances and responsibilities of the family divorcing rather than obligations to a second family.
Thanks for your reply,It is interesting to see the different views of people on this forum.
Yes it is certainly the case that she did work part time throughout the marriage, although my partner had been asking her for years to increase her hours due to him having to take a lower paid, less stressful job due to illness.
I thought as per the previous reply that both parties were expected to take reasonable steps to maximise his/her income but now see that it is possibly not the case.
It is a complicated area when offsetting cash now against pension in the future, particularly if retirement is a long way off.
Typically there may be a ''discount'' so for example in exchange for £1 cash now she would give up £2 of pension share. This would be a 50% discount although I''ve seen posts where it has been higher (upto 75% discount)
Individual circumstances are important. Pensions are considered less valuable than liquid assets because they are a long term investment for retirement and can''t be turned into cash. Therefore there may be some discounting when offsetting pensions against other assets. The closer to retirement the less any discount.