Confused about endowment / divorce

[Ataraxy]

So I'm getting divorced. The house is worth say £200k with say £130 mortgage comprised of £100k repayment (15 years left) and £30k endowment (6 years left, worth £18k at present value). Like most people found our the endowment won't cover what we owe so we took out another endowment policy (worth 8k present value) which matures in 2 years.

So to complete the housing picture we have 2xDCs together who live with me.

He wants £10k from sale of the house plus both endowments signed over to him.

This is where I'm getting confused. So if the house sells for £200k. That would pay off the £130k mortgage leaving a profit of £70. Wouldn't that mean I would receive £60k and he would receive £36k (£10k+£18k+£8k)? Have I got that right?

Seems right to me, except of course you've ignored the cost of selling (1% + VAT or more). You may of course have an early repayment penalty for paying off the mortgage too.

You also may have to reduce the price of the house whilst his endowments and £10k would be set. I think his £10k should be variable if you have to reduce the house by 6% he also trims his share (if you're using £200k and the split you mention is fair then the fact it may not work out that way should be considered IMO).

Good luck

Thank you Whoosh. That's a big help.

I should add that endowments are not 'set' as such very much depends on the structure of them. However the 'cash in' point would be done at the time it was advantageous.

Also, be aware they may carry a terminal bonus - check the value/potential value of this.