£98,000 equity - already given over to wife
£42,000 my CETV pension value
£16000 cash-in value of the joint endowment which is due to end 2019
She lives in a mortgage free home with her parents, which i have been told the £98,000 was used as part of the purchase price. I have been told by her parents that she contributes absolutely nothing, no rent, no bills, just food for her and my son.
She is an accountant and therefore can earn a decent wage should she wish to.
When i did the calculator it came out at £80/20 in her favour with me paying her hundreds (this really confused me)
I know its all down to the judge on the day but can anyone give me any clue as to what to expect to be able to keep?
OK - now we have the figures we can make some guesses
It is not uncommon for a stay at home mum (with kid(s)) to get a 60:40 split of assets plus spousal maintenance. Or a 70:30 or 80:20 split for a clean break.
I think you can achieve a clean break on these figures. Largely because of her ability to earn a living as an accountant.
One factor when considering the split is that your pension should generally not be valued pound for pound against the house - cos its money u cannot spend or cash in for many many years. So (and this is a totally unofficial DBNO rule of thumb - cos UK law doesn't provide an official one) i would discount it by 50%.
i.e. treat the pension as only being worth 21K. (This is a very well used and accepted legal argument - its just the exact % discount that is argued over)
A BIG BIG factor is her housing needs. If they are deemed by the court to be met through this sharing arrangement with her parents - this helps your case a GREAT deal.
YOUR housing needs are also a factor and that points strongly towards you getting some cash for a deposit - and the Endowment will serve that purpose nicely.
Ok so what does that give us....
Lets give her the whole house and you the whole pension and endowment.
98k to her
21k + 16k = 37k to you
Thats 72% to her and 28% to you.
Which is very much in the ballpark.
And sharing it out that way is clean - judges like that.
Because for example pension sharing has a cost to it - so you lose value from the pot.
No spousal maintenance ( or perhaps nominal maintenance of 1 pound a year for 5 years).
And of course child support paid monthly at CSA rates.
Hey its dead easy this Ancillary Relief stuff!!
So how come it takes 18 months and 10s of thousands for a court / solicitors / judge to come up with that!!!!
And now the bad news.....
If she has expectations of 50% of the pension and 50% of the Endowment - she is very unlikely to accept the split I just outlined.
If she is stubborn and takes it to court - you will spend 1 year and 5k to 10k each to fight it out.(you could self rep and save your half of the legal fees)
When the guns go silent....
And the smoke settles....
The court will award exactly what i just outlined.
You can take a horse to water, but you cant make it drink.
You can show a spouse a reasonable settlement offer, but you can't make them think.
What I mean is :- if its decided that I was entitled to say 25% of a pension with a cetv of 100k , and we both already had equal cash assets ( house values etc) , would I be entitled to 25k or 12.5k if I took a pension share or cash?
I like your workings out .. and I would lay odds that you are right!!
In my case x2b got big pension and endowment. I got house, my (smaller) pension and the value of my company.
Using your calculations, it works out as a 65.5:34.5 split in my favour.
I also have an endowment and savings for the kids that were ringfenced. If you factor those in as well, the split is in fact 68.5:31.5.
So both in the ball park.
The key though is HOW you view the pension .. It would be great if there was some consistency of approach. If at FDR - or sooner, someone had come up with your approach, it would have been very helpful!!