I’m new to all this and finding the whole financial side of things very overwhelming, however feel lucky we have been sensible with money and we can hopefully settle amicably.
Him – 56
Son 20 – final year at Uni
Daughter 18 – deferred Uni to Sept 2021
Both live with me in marital house (Son in Birmingham Uni but currently at home due to COVID)
The length of marriage
Married 20 yrs., 4 yrs. living together
me £35K (4 days per week and have been since son was born)
him £100K plus ~£10K yearly bonus
Mortgage £73K, house worth £400K
Final salary pot £82K plus £12.5K per year
Defined contribution £45K
Final salary pot £300K plus £36K per year
Defined contribution £75K
No debts, both have cars on PCP which we individually pay for
£1250 – leaves £925 per month
£3159 – leaves £1400 per month
Husband has cheated and walked away from marriage in October and has a rental 2 bedroomed flat 2 hrs away where he works (he’s been working away Mon-Thus for last 7 years & renting this flat)
He’s been very amicable and wants us to stay in marital home until daughter finishes Uni (4 years time). Plans to pay for mortgage and bills (which is what he currently does) for next 4 years
I want a complete financial break as don’t want to wait 4 years to sort out finances – think that’s a dangerous move!
He’s willing to split everything 50:50
Is that fair? I’ve lost out paying into my pension 1/5 for last 20 years.
He’s was also got 30K shares in his company but not allowed to sell for another 4 years (an incentive to keep him in the job) – am I entitled to any of this ?
With our savings I want to pay off the mortgage (£73K) and have a lump sum (~£25K in order to pay bills for next 4 years) so I can be independent and not be reliant on him. I want the house and deeds put into my name and split what’s left of savings 50:50
In order to do this we’d have to come to some sort of legal agreement that he has a share of the equity of the house in 4 years time or if I sell before then (which would only happen if one of my kids are able to move out to a place of their own) or can his equity come off my 50% of Pension?
I don’t want to rip him off but I want it to be fair. He earns so much more than me, I can’t go full time ATM as I job share but I also don’t want to as it was never our plan.
I would appreciate your thoughts of what would be a fair split, something I could bring to the table and hopefully agree on without the need for expensive solicitors whilst he’s so amicable.
After a long marriage the start point for division of assets is 50:50 but that may not be how it ends up.
He will need a deposit to buy a property. It is worth exploring what that might cost and what size mortgage you could each obtain.
Given the disparity in your incomes it may not be unreasonable for you to have a slightly greater share of the cash assets.
If there is say £310k equity (after costs of sale) plus savings and shares amounting to £150k that's a pot of £460k.
If you could borrow enough to take on the mortgage and provide a lump sum that would make the split say 60% to you (£276k - plus you would need approx £110k mortgage). You could get him to agree to pay some additional maintenance to support the children through university - perhaps the equivalent of what he would have paid in child maintenance if they were under 18?
He may agree to a smaller share in return for a clean break ie no maintenance. If you kept the house and he had the savings and shares that would be 67:33.
The pension pot would be shared to give you equal incomes in retirement. If necessary (assuming 67:33) you could agree to a slight adjustment to reflect the unequal equity split.
It may be worth suggesting you just equalise the DB schemes as he has an additional £30k in DC pension that he could convert to cash.
You may want to consider a fixed price legal financial consultation so you can be sure that you are on the right lines.
Many thanks for your reply. I can't afford to take on a mortgage and the bills so will look into paying him off through the pensions if that's feasible once the split is decided. Will definitely be looking into the fixed price legal financial consultation.