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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.


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Help - this calc is freaking me out

  • Striker
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22 Jan 08 #11453 by Striker
Topic started by Striker
Hi, I'm just in the process of separating from my wife with an equal split of chlidcare for our 2 kids. I built a business which was sold a couple of years ago, leaving us with assets of £2M. Now that she wants me to leave, the calculator tells me that she is entitled to 70% of the assets ! How can this possibly be right ??
This country is completely crazy if this is how it treats people who create employment and drive the economy. Why did I bother ?

Here are my results in full - any help or advice on how to get a different outcome would be appreciated :-

General:
The length of the marriage was 20 years.

Income:
The wife's net monthly income is £400.
The husband's net monthly income is £5000.

Children:
The number of children from the marriage is 2
Child 1 stays with wife for 3.5 nights per week and with husband for 3.5 nights per week.
Child 2 stays with wife for 3.5 nights per week and with husband for 3.5 nights per week.

Assets:
Joint matrimonial property:
- Former matrimonial home valued at £1000000
- Other property valued at £800000
Total : £1800000
Wife's property:
Total : £0 (Total value at marriage : £0)
Husband's property:
- Pension CETV valued at £200000 (value at marriage : £0)
Total : £200000 (Total value at marriage : £0)

Processing Assets:The total value of assets you entered as joint assets was : £1800000
We add to this joint pot the increase in wife's assets since marriage : £0
We add to this joint pot the increase in husband's assets since marriage : £200000
We add 10% of wife's assets (valued at marriage date) for each year of marriage, which is £0
We add 10% of husband's assets (valued at marriage date) for each year of marriage, which is £0

The joint asset pot is: 2000000
The wife's asset pot is: 0
The husband's asset pot is: 0

Liabilities:
Joint liabilities:none
Wife's liabilities:none
Husband's liabilities:none
The net joint assets are worth : 2000000
The net wife's assets are worth : 0
The net husband's assets are worth : 0

Splitting the assets:
Next we share out the net joint assets based on factors such as:
length of marriage, relative incomes, who cares for any children.

Wife's share: 70%
Husband's share: 30%

Wife's total share of net assets is : £1400000
Husband's total share of net assets is : £600000


The Wikivorce estimate for ancillary relief based on the above parameters:

Maintenance calculation based on outgoings data:

You did not enter any outgoings data.

Maintenance calculation based on household/childcare data:

The wife has been allocated the following:
- basic (incl childcare) needs £1080
- shared contribution £1080
- share of excess income £270
A total budget allocated of £2430

The husband has been allocated the following:
- basic (incl childcare) needs £1080
- shared contribution £1080
- share of excess income £810
A total budget allocated of £2970

The husband should pay the wife maintenance of £2030

  • Fiona
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22 Jan 08 #11455 by Fiona
Reply from Fiona
The calculator doesn't seem to take account of individual circumstances. When there are assets surplus to meeting both parties needs as in your case the emphasis for dividing assets is on equal sharing ie 50:50 unless there is a good reason to depart from that.

There is a big discrepancy between your incomes so your wife would normally be awarded spouse maintenance which you could capitalise.

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22 Jan 08 #11456 by Striker
Reply from Striker
Thanks for your reply which has cheered me up a lot ! I've spent a few days in a daze at how these calcs could be so one sided.

I haven't heard of capitalising spouse maintenance before, how does this work ?

  • Josh2008
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22 Jan 08 #11458 by Josh2008
Reply from Josh2008
Try entering some data for the outgoings as they are likely to be in the foreseeable future

When I first input I didn't like what I saw either, but like you I left out the ongoing outgoings.

When I put them in the swing returned to my benefit

If when inputting and submitting a re-calc, figures don't still seem right, you will need to get rid of the past details by clearing your cookies and offline data in the internet options, under tools

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22 Jan 08 #11459 by Josh2008
Reply from Josh2008
With regard to capitalising SM, what Fiona is saying is that instead of paying SM an amount is taken from the assets and would be a 'Clean Break' with regards only to SM

You cannot have a 'Clean Break' on Child maint.

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22 Jan 08 #11462 by Striker
Reply from Striker
over how many years is SM payable, she is only 40, and could live to 90 ? Does that mean that with a montly of £2k she would get £1.2M as a lump sum with capitalisation for SM ?
As well as never getting married, I'll tell my kids never to start a business and earn the lowest salary possible (or not work).

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22 Jan 08 #11464 by Fiona
Reply from Fiona
SM can be set for a set term or life and when an order is in place the courts may vary it at a later date.Capitalsation is calculating commuting a wife’s income needs into capital, thereby facilitating a Clean Break.

Now it is also possible to make a Clean Break for CM too.The rules requiring a parent to make an application for CM if they find themselves on benefits will be repealed in May this year.

As Mike (Durham Legal Services who specialise in Child support law) pointed out in a previous post -

Under current legislation if you obtain a Court Order you can not return to the CSA for 12 month and 1 day. If you were to get an Order today that would take you to Nov 08 so in effect even if you’re ex partner found herself on Income Support she is not required to complete a Maintenance Application Form.

All you would need to do to get round the 12 month rule is to have written in the order some penalty/pay back should your ex go to CMEC, but if you are both in agreement I cant she any reason why she would.

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