Divorce settlement hypothetical

[cocavino]

for those who want to play. Key facts below:

• 5 year marriage, 10 year total relationship
• wife moved countries for husband. her earning potential much lower in the UK.
• 3 year old child together
• husband was coercively controlling and financially abusive

Key financial info

• bought a house together: she contributed £85k and he contributed the rest from a property that he previously owned.
• there is currently £800k equity in the house. this is the primary asset.
• wife left a year ago. husband has since done £100k in renovations.
• pension saved by both parties during the marriage totals about £180k
• wife has spent £20k in rent since fleeing the marriage
• husband earns £165k plus got a bonus of £100k last year
• wife earns £60k and has child the vast majority of the time

future plans

• husband wants to keep 5 bedroom house in the centre of London for himself
• wife willing to live in Zone 4, but wants a 3 bedroom with easily accessible garden (husband says she only needs a 2 bedroom flat)

What is the wife's financial settlement?

www.moneyadviceservice.org.uk/en/articles/divorce-and-money-calculator

This will give you some ideas. The abuse and controlling behaviour won't affect what the court decides (although it will impact the process of going through court).

The other thing to consider is if you will want private education fees as these can be substantial.

From my experience, what you brought in etc won't count. Abuse or reason for divorce won't count. What you paid in rent, won't count.

What he thinks won't matter.

It starts with an assumption of a 50 50 split, but if you need more than that to meet your needs, the court would rule in your favour.

You will have to go to mediation first.

It goes on need. How much do you need to live, and get a house for both of you to look after your child. Child maintenance is a separate conversation to the financial settlement which will most likely be a one off payment.

So let's start with half the equity at £400k, agree to keep your own pensions perhaps. And then provide proof that you'd need more to buy a house. You will also need to show your borrowing potential, as will he to buy you out.

If you cannot reach an agreement between you, the split will begin at 50/50.

The rest is up to the judge on the day.

As the DH is already suggesting DW requires a much smaller property whist he remains in the large expensive one, get legal advice and try to obtain copies of everything financial.

Good luck.

Ps, do not assume the court will rule in your favour, this is not nearly always the case.

As there has been financial abuse, please also be alert to the potential for hiding of assets.

@Oopsiedaisyy husband dumped a lot of his income into pension to avoid paying tax, so his pension savings during the marriage are far greater than the wife's. Does this change your view?

No one here can tell you because there is no blanket formula. Everyone's figures will be different. You need to go to a good solicitor

He wants to give me (the wife, obviously) a total of £350k (including pension) and he thinks it's totally fair. He says that there is literally no way I would achieve this in court and that my legal advice is bad. Just getting a sense check.

Well, he would say that wouldn’t he. The last person you need financial advice from is him.

If he thinks his offer is so fair that you won’t get any better in court, why is he pushing it so much!

I don’t have much experience in this type of things other than my husbands previous divorce (long before me) but I can’t see any judge deciding that a single man needs a 5 bed central London home whilst the wife and child ‘only need a 2 bed flat in zone 4’!

He's dreaming

Sorry, longer response.

Starting point will be half of everything, and if his pension pot is bigger that counts.

I had a similar situation. I should have been grateful to receive around 1/4 of total shared funds I was told. After mediation and threatening court with its 60k costs, I got half. Stay strong, get a solicitor and remember that this isn't about you, it's about making sure your child has a happy and secure future with both parents financially.

Not just pension savings during the marriage. The whole pension amount will be considered. Don't sell yourself short here.

Op - rules for settlements vary across UK.
I went through divorce in England recently and based on that - my guess would be:

• 50/50 house equity split
• pension split may go 50/50 but may not, it’ll be up to judge
• child maintenance in your case can go above CMS calculation as he is a high income earner and is above cms threshold. Your solicitor will ask for top up based on child’s needs as per Schedule 1 of Child act (can’t remember the exact name)
• you are unlikely get much or any spousal settlement as you are working
• house will be valued at what it costs currently, and your rent expenses won’t be taken into account

• it’s a good thing that he wants to stay in the house - and especially if he puts it on the forms. Don’t argue with it - it’ll play in your favour as the judge will be looking at it. Because if he has a 5br house to house the children - you will be able to argue that you need a comparably large house (at least 3br) and also in London.

In the end - most likely the judge will say that neither needs it - and two 3br houses and not as Central is perfectly OK for the child and you - so you’ll both be ok.

Don’t agree to anything he offers now as he is clearly hoping you are unaware of what you can actually get. And as they all do - he offers you something far less - my exH tried that as well.

All the expenses of solicitors - yours and his will come off the marital assets before settlement is agreed.
And don’t believe him if he threatens it won’t - they all do that.

Basically - you need to find a decent solicitor who won’t overcharge you - and be ruthless with their billings. See if any of your friends have a recommendation.

Happy to talk more on PM.

Yep you need a Shit Hot Lawyer with a proven track record of good outcomes for wives of high earners that are unreasonable!!!

I do have a solicitor, but his adamant approach was making me doubt myself/her. I am fairly satisfied with her so far.

I reported back to her on his proposal and she was very firm that she would not advise me under any circumstances to accept an offer for less than half of the assets.

That sounds sensible. He is always adamant, doesn't mean you should agree.

Trust the solicitor

He has now gotten additional advice and he seems more conciliatory

I assume the solicitor gave him bad news about his chances in court

I kept saying to mine, talk to a solicitor, because I'm right....

Weirdly once we agreed the settlement, we have got on a lot better

I think we will probably get along better when this is all done and dusted.

Unfortunately, his being conciliatory just means that he is going to try to manipulate me into accepting a bad deal

As under 10 years the assets brought into marriage will be considered. She needs to be adequately housed so would expect to get more assets than the 85k and likely to receive either a lump sum or extra maintenance above cms until the child is of an age that they don't need childcare. Reason for leaving isn't a factor in settlement

@minnieok you don't think that the wife moving countries for the husband makes any difference? It seems like an important equitable factor which should matter more than the marriage being less than 10 years

Crazy to make a settlement offer for £390k plus £50k pension?

How much is total pension? Including before marriage?