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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.

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The four basic steps to reaching an agreement on divorce finances are: disclosure, getting advice, negotiating and implementing a Consent Order.

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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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Maintenance

  • EmpireState
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16 Feb 08 #14090 by EmpireState
Topic started by EmpireState
Married 24 yrs, wife makes all the income now. She has recently gone from salary plus bonus to a commission against a draw. She says on a draw she doesn’t have to pay me any maintenance. True or false? How would a fair settlement be attainable?

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18 Feb 08 #14310 by DownButNotOut
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Empire State,

I am sorry i'm being a bit thick!

But can you please explain what you mean by 'commission against a draw'?

In general commission based earnings are included in maintenance calculations...i.e. she would have to pay you maintenance based on her commission.

But I am unfamiliar with the term 'against a draw'.

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18 Feb 08 #14332 by EmpireState
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Draw Explained

Thanks for your interest. How to explain a draw? Like a salary, a draw is a fixed sum paid monthly to keep bread on the table whilst commission income is building. Unlike a salary, a draw is more like an advance against commisssions yet to be earned. e.g., has to be paid back. Once once the draw is covered, remaining commissions are paid to the salesman. Say a 100k draw, first 100k commissions pay back the "advance", excess commissions then start flowing to the salesman [producer]. [ If you don't make your draw, you eventually get fired rather than paying back what owe the firm]

A commission income can vary widely - 1x to 5x times draw how do courts handle this?

I've been a bit verbose, but hope I'm made my point.

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18 Feb 08 #14333 by DownButNotOut
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Ok - thats now clear.

Well the main point is that commission is included when assessing the amount of maintenance to be paid.

If the income is erratic/unreliable, then the court will likely fix a figure based on the average income in recent months.

It income takes a long term downswing / or upswing then there is a possibility to vary the maintenance in the future.

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