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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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We offer a consultation with experienced family solicitor for a low fixed fee. You will receive legal advice and a written report outlining your legal position and setting out what a fair settlement would look like based on your individual circumstances.


Who gets what? Can''t agree settlement

  • ayeayecapn
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21 Sep 12 #357119 by ayeayecapn
Topic started by ayeayecapn
Hello, please help me get some clarity
Some basic info for context: Hope it helps.........

W. 42
H. 45
Married 18 years
lived together 3 yrs prior to marriage
1 child in primary school
Separated.
H.in MH. W paying mortgage. W with child renting flat locally.
W has child 6 nights. H has child min 1 nights (sometimes 2 or 3. Flexible arrangements)
W earns c. £65K
H earns c.7K (self employed)
H. did more childcare and housework prior to school (initially 2 days a week then 1 day a week)
W didnt want to go back to work. H didn''t want to do part time work but both parties did so for sake of relationship etc.
H. pension c. 25k
W. pension unknown but large. c. 20 yrs public service pension. Disclosure will be made at mediation.
Capital in MH after costs and debts repaid. c. £280k

Settlements suggestions have been........

W. suggests 50:50 capital split and no pension share.
H. suggests 50:50 capital split and pension share OR....
60:40 capital split with no pension share.

H. currently has no mortgage capacity so would have to buy outright. (Small 1 bed flat approx £160k locally)

W says no to 60:40 split option and no to 50:50 split & pension share.

Divorce Calculator suggests a 50:50 split with W paying c. £1100 a month maintenance to H. H doesn''t want maintenance, just Clean Break. W doesn''t want to pay maintenance

Is one or other party being unreasonable? Should W or H expect more, less, about equal?

Any guidance/general principles would be really helpful as mediation starts again in a few weeks.

Thank you

  • maisymoos
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21 Sep 12 #357122 by maisymoos
Reply from maisymoos
Due to such a large differential in incomes the 60/40 captial split to husband with no pension and no maintenance sounds like a very good deal for wife. I would really think a pension share would be appropriate too. The Wifes pension is possibly the most valuable matrimonial asset. If no maintenance is to be paid to husband his share of assets in my view needs to be way beyond 50%.

I will be interested to see what others think!

  • Action
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21 Sep 12 #357177 by Action
Reply from Action
I agree with Maisymoos. The housing needs are similar, assuming the H will have shared residence, and 60% of the equity of the house sounds as if it will not buy a two-bedroomed property.

Try approaching it from the ''needs'' angle and work out what the H and W need to live by doing a monthly expenses schedule. If H buys a property with no mortgage then he still has nothing to live off (£7k not going very far these days). A lump sum in lieu of spousal maintenance might be worth looking at. In my case the equity from the property is to be split 50/50 once sold and then a lump sum paid to me in lieu of SM plus a lump sum in lieu of pension sharing (being roughly equal to a 70/30 split in my favour). We have no dependent children and our earning differential is nowhere near yours.

I believe that calculations are done on earning ability/potential rather than whether you want to work. Has the husband''s earning potential been compromised as a result of caring for the young child?

I just can''t see a 50/50 or a 60/40 split with no SM or pension share being accepted by a court - it leaves the H disadvantaged in my opinion.

  • soulruler
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21 Sep 12 #357190 by soulruler
Reply from soulruler
I agree. I would go for 60/40 split in favour of the husband with the wife paying the mortgage until the house is sold (providing that the husband in occupancy actively seeks to sell the property) and then seeing as the husband is agreeable to Clean Break a pension sharing in consideration of the length of the marriage and the disparity in incomes throughout the marriage.

  • ayeayecapn
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21 Sep 12 #357209 by ayeayecapn
Reply from ayeayecapn
Thank you maisymoos, Action and soulruler.

maisymoos - on balance it looks like a good deal for W.

Action - H earning potential. It could be argued earning potential suffered due to nature of work and need to be visible in crowded marketplace. Additionally it''s a one man band and needed more attention than it got. Thank you for sharing your settlement details.

soulruler - house sold - subject to contract etc. buyers want mid October completion. This would make H homeless if no settlement arrived at before completion.

W. using the moral argument. H has only contributed 1/3 of monthly income and it''s immoral to ask for more than 50% or any of pension as it''s all hers, not H.
W fails to mention childcare, housework and all cooking done by H.

  • soulruler
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21 Sep 12 #357213 by soulruler
Reply from soulruler
Well if house sold then I believe that the proceeds to sale need to be kept in a solicitor client account rather than paid out to either party until the financial aspects of the divorce are settled.

Maybe you need to apply for a MPS as with no mortgage their is no liablity to pay anything without a court order or without a Consent Order drawn up as to settlement of the financial aspects.

How far are you down the divorcce route?

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21 Sep 12 #357216 by ayeayecapn
Reply from ayeayecapn
Yes, monies to be held on account until settlement.

Outstanding debts will be repaid on completion and solicitor knows what they are, the amounts and to whom they should be paid.

Divorce proceedings haven''t started yet. mediation is ongoing.

H can''t afford solicitor and solicitor won''t give legal aid as house is worth too much money. Catch 22. No ready cash and solicitor not prepared to do it ''cos of tied up capital. Bizarre situation?

I''m sorry but I don''t know what a MPS is. Can you please explain?

Many thanks.

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