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Financial settlement 15 years after divorce

  • poorschmuck
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11 months 1 week ago #507992 by poorschmuck
Financial settlement 15 years after divorce was created by poorschmuck
Hello,
As the subject suggests, for one reason and another I have not been able to engage my ex-wife in the financial settlement process until recently, and I have been trying to get my head around what would be considered a fair settlement.

The challenge I have found is almost all advice assumes the divorce and financial settlement are being conducted within a similar time frame, but that is clearly not the case for me.

Over the intervening years I have paid considerable monthly amounts to my ex-wife to cover mortgage interest payments and child maintenance , while also renting a modest house to accommodate my four daughters every weekend and during holidays. The amounts were set by me and reflected what I knew to be the household running costs in the first few years. As time progressed I reduced the monthly amounts but always it was more than the suggested child maintenance amounts plus mortgage contribution.

I had several occupational pensions from during the 15 year marriage (12 years until separation), but a year after [url=Resources/Library/Cohabitation-and-Separation_s33_m1852.html ]separation[/url] I changed employers and started a new pension.

All the guidance says the default starting point is the 50/50 division of marital assets. All our children are now over 21 or living independently, so childcare is not an issue.

The pension I have from the job I started after separation from my ex-wife is now substantial.

I fully expect the house and pre-separation pensions to be split between us, perhaps unevenly, but it doesn't feel right to me that my pension, which started post-separation, should be treated as a marital asset.

Does anyone have any experience of being in a similar position?

Thanks in advance.

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  • hadenoughnow
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11 months 1 week ago #507995 by hadenoughnow
Replied by hadenoughnow on topic Re:Financial settlement 15 years after divorce
Welcome to wikivorce.
Are you actually divorced or just separated? If divorced, have either of you remarried?

As far as the pension goes, you would need to declare the pension accrued post [url=Resources/Library/Cohabitation-and-Separation_s33_m1852.html ]separation[/url] but it can be argued out of the pot. The fact that you have it may be taken into account and could mean she gets a greater share of other assets depending on her needs and her income.

As the children are all independent,your housing needs have diminished. The question is whether you could each buy a suitable property, with mortgage if needed.

Do you know the value of the former matrimonial home and the outstanding mortgage?

What are your current respective incomes?

What are the CEVs of the pension you both have - from before and after separation?

Are there any other assets to consider??

Hadenoughnow

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  • poorschmuck
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11 months 1 week ago #508010 by poorschmuck
Replied by poorschmuck on topic Re:Financial settlement 15 years after divorce
Hi hadenoughnow,

Thanks for the response, and yes divorced in 2004, separated in 2001, married in 1989.

The matrimonial home is worth £450,000 with £53,000 mortgage outstanding.

My ex-wife is claiming she is unable to work (although she recently bought a Swiss mountain dog and seems capable of hour long walks with it). My salary is £70k.

The marital pensions have a CEV of around £50k.

She has savings of £25k.

I have savings of £6k and around £42k in shares (with around 25% being taxable if sold being in a share save scheme). All shares bought post [url=Resources/Library/Cohabitation-and-Separation_s33_m1852.html ]separation[/url].

I am with a new partner who works part time earning around £17k.

Neither my ex or I have remarried, although I would like to.

No other assets.

TIA

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  • WYSPECIAL
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11 months 1 week ago #508011 by WYSPECIAL
Replied by WYSPECIAL on topic Re:Financial settlement 15 years after divorce
Does your ex receive any benefits as a result of not being able to work?

She clearly has some source of income if she is able to have £25k in savings?

Does she live with a new partner?

How much would a one or two bed house cost around by you?

Do you own where you live now or are you still renting?

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11 months 1 week ago #508015 by hadenoughnow
Replied by hadenoughnow on topic Re:Financial settlement 15 years after divorce
If half the equity is enough to buy a suitable place for her to live then I cannot see any reason why it shouldn't be a 50:50 split, especially if you have paid the mortgage.

If she needed a bit more than half, that would also be reasonable given that you have other assets you can have recourse to.

The question would be how her income needs will be met. Has she totally relied on your financial support all this time? Or has she worked?

Hadenoughnow

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  • poorschmuck
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11 months 1 week ago #508060 by poorschmuck
Replied by poorschmuck on topic Re:Financial settlement 15 years after divorce
There is potentially around £400k equity in the marital home and there are over 50 2-bedroom properties plus a handful of 3-bedroom properties for around £250k in the area.

She was working for her parents (and has only ever worked for her parents) until the start of last year. Her father wrote a letter saying they could no longer employ her due to her health issues. She is claiming back and arthritis problems, but in the middle of last year she bought a Swiss mountain dog puppy and now does daily hour-long walks with it. So I think she has chosen not to work and retains the ability to work.

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  • Rickoshea
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11 months 1 week ago #508062 by Rickoshea
Replied by Rickoshea on topic Re:Financial settlement 15 years after divorce
As the children are all independent her strict need is a 1 bed place so the equity on the house looks to be covering that.

biggest issues as others have said is what her income needs are now and in retirement as we don't know ages but given the kids and the length of [url=Resources/Library/Cohabitation-and-Separation_s33_m1852.html ]separation[/url] presumably you are both closer to retirement. As you've funded her for a fairly long time you've shown you have the capacity to and set a precedent. It may be you have to forego more of the equity to allow her to invest or use that as a pension potentially. What has a solicitor advised?

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