Tag: prenuptial agreement

Posted on October 2 2019

Your Top 10 Divorce Questions Answered

Your Top 10 Divorce Questions Answered

1. Can I do the divorce/end our civil partnership myself

Yes, here’s a guide to how to file for divorce in the UK. It also tells you about the challenges you might face. If in doubt, consult an expert family lawyer.

2. How much will it cost

The Court fee is £550 but:

  • are you eligible for an exemption? Here’s a link to an application form, or
  • will your ex pay? You can ask the Court to make an order although it’s not guaranteed the Court will agree so try to reach agreement with your ex.

3. How long will it take

About four months ruling out mishaps with the paperwork. But it’s wise to delay completing your divorce until you have a financial order. Why? Because you might miss out on your fair share; eg if your ex dies after the divorce but before you have a financial order you could lose out on their pension. Not sure? Consult an expert family solicitor.

4. How are the finances split 

Equally – subject to the following factors:

  • welfare of children
  • income and earning capacity –  a “clean break” means a payment of capital instead of ongoing maintenance
  • financial needs – eg the care of children
  • standard of living during the marriage – in rare cases where there is an excess of capital and income this is an argument for a greater share
  • your ages, and the length of the marriage – different considerations apply if it’s a short marriage
  • disabilities – ongoing maintenance or extra capital may be the answer
  • contributions to marriage – high achievers can attempt to ring fence their “stellar contribution”

Try to agree the finances with your ex – see my recent blog How to avoid Court for your options:

5. Do I have to disclose my finances

Yes. Hiding assets or income drags things out and can result in an expensive and never ending court case. You will disclose your assets and income in a Form E Financial Statement, and/or a Statement of Information for Consent Order (if your agreed settlement is protected in a consent order)

If you don’t make full disclosure you risk:

  • adverse inferences being drawn as to the extent of your assets
  • extra costs
  • imprisonment for contempt of Court

Think you’ve got away with it? The Court can overturn financial orders when non disclosure or fraudulent disclosure comes to light. Transferring assets to someone else? You risk a Court order freezing your assets and a hefty costs order. Hiding assets? You risk imprisonment for contempt of Court.

6. Can I ring fence my assets 

Yes, sometimes, but you must still give full and frank disclosure first. What’s the best way to ring fence and protect assets on divorce? A prenuptial agreement.

If you’re already married, a post nuptial agreement. 

7. What’s a non matrimonial asset

Take advice because it depends on all the circumstances:

  • the house you owned before the marriage
  • the pension you paid since you started work
  • the inheritance that post dated separation
  • your business

But if there aren’t enough matrimonial assets left to fulfil your ex’s needs eg for housing, non matrimonial assets can be used to plug the gap.

8. Is it possible to ring fence and protect an earlier inheritance

Possibly if you never allowed it to be used as a matrimonial asset.

9. Can a business be ring fenced

Your ex might make a claim over your business but won’t automatically be entitled to a share of the business on divorce, and if they are, they could instead receive a larger share of other assets such as savings or the family home. Take advice, this is a tricky one.

Joint business? The options are:

  • split it between you
  • buy each other out
  • sell it

Here again a you might want to consider a post nuptial agreement.

10. My husband/wife/civil partner has left me what are my rights

Worried your ex will:

  • sell your home because it’s not in joint names
  • sell, hide or move valuable assets

The answers are:

  • an application to the Land Registry to register a Notice of Home Rights – anyone who is not a joint owner should register their home rights when a marriage breaks down
  • an urgent application to the Court to freeze assets

You need maintenance:

  • on an emergency basis
  • to support the children

The answers are:

Your Top 10 Divorce Questions Answered

Contact Family Lawyer Joanne Houston on 01962 217640 for an initial consultation on Your Top 10 Divorce Questions Answered. In this 20 minute session she will review your situation and how you can achieve your objectives.

JUST FAMILY LAW are specialist divorce and family lawyers. We offer Pay as you go costs. We offer Collaborative law solutions tailored to your family’s needs.

The topics covered in this blog post Your Top 10 Divorce Questions Answered are complex. They are provided for general guidance only. If any of the circumstances mentioned in this blog apply to you, seek expert legal advice.

image for Your Top 10 Divorce Questions Answered – Facial portrait of sad expression by a female actress by xusenru on Wikimedia

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Posted on October 24 2018

Change in US Tax Rules for Alimony


Change in US Tax Rules for AlimonyA big change in US tax rules for alimony is coming up in December 2018.

Do you live in the UK and your ex in the US? Or do you live in the US and your ex in the UK?

This change might apply to you and you may need to take urgent action.

The Tax Cuts and Jobs Act 2017 applies after 31 December 2018. Currently, payment of alimony (as maintenance is known in the US) is tax deductible. And those who receive alimony (the lower earner, so generally the wife) pay tax on it.

The change will mean husbands (generally the higher earner) will get no tax advantage and wives will no longer pay tax.

Two Ways of Looking at Change in US Tax Rules for Alimony

International families are rushing to finalise their financial arrangements to preserve the tax position. But there are two ways of looking at it.

Some say it’s a bad thing. Husbands will lose the tax advantage and may want to pay less alimony. And as wives won’t have to pay tax why should husbands pay them so much anyway? If you look at it this way you can understand why some international couples are panicking.

The UK went through similar tax changes in 1989. Lawyers were initially nervous. Would husbands be less willing to pay? Would wives miss out?

But in the long run the change in UK tax law didn’t make too much difference. Maintenance is calculated in the UK on the basis of need. How much does the wife require to support herself and the children? And what is the shortfall between her requirement and her income? This figure generally indicates the sort of maintenance that is required. See my recent blog Maintenance and Clean Break on Divorce.

Since 1989 there hasn’t been the head scratching and the complicated calculations – if he pays this much, how much tax relief will he get? So shouldn’t he pay more and pass over some of the benefit? And what about the wife, will it push her into a tax paying bracket? How much tax exactly will she have to pay? None of this applies anymore. In the UK it’s now a simple case of “What You See Is What You Get“.

Change in US Tax Rules for Alimony – Long Term & Short Term

Short term, couples will want to take advantage of the existing tax system. But hopefully the impending change won’t tip wavering couples into divorce.

Long term, it’s possible the change won’t make a fundamental difference. And it might save on professional fees as it will be simpler to work out what is actually paid and received – because they will be one and the same.

Change in US Tax Rules for Alimony and International Tax Rules

If one of you is US or UK based, and the other in a country where tax remains relevant, such as Belgium, Ireland, Italy, Netherlands or Portugal, make sure you take advice from an expert international family lawyer.

Prenuptial Agreements

If you are in an international family and you have an existing prenuptial agreement you should seek advice on the impact of the change in US tax rules for alimony.

Don’t Delay!

Anyone wanting to take advantage of the existing system should make sure they take advice now. There may still be time to secure a maintenance or alimony order – whether by consent or in Court – prior to 31 December 2018. And please note that the detail of the changes coming up in the US tax rules are complex and far reaching, and go well beyond the scope of this article. So please don’t delay taking expert advice.

Contact  Joanne Houston on 01962 217640 for free advice on the forthcoming change in US tax rules for alimony. In this 20 minute session we will review your situation and how you can achieve your objectives.

JUST FAMILY LAW are specialist divorce and family law solicitors offering personalised legal solutions. We offer collaborative law which is especially relevant in providing solutions tailored to your family’s needs. This includes same sex couples and their families. Visit our website just-family-law.com The topics covered in this blog post are complex and are provided for general guidance only. Therefore if any of the circumstances mentioned in this blog have application to you, seek expert legal advice.

image American Flag by Bengt Nyman on Wikimedia

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Posted on September 28 2018

New Family Solicitor in Dorset and the West Midlands

Family Solicitor in Dorset and the West Midlands

Expert family solicitor in Dorset and the West Midlands

Just Family law introduces Karen Layland, our experienced and highly recommended family solicitor in Dorset and the West Midlands.

Karen has over 25 years experience in:

  • divorce
  • family law
  • assisting people who live together

and she can help both at the start and the end of relationships.

As an Advanced member of the Law Society Family Law Accredited Panel Karen is a recognised expert covering specialist family law work.

Personally recommended family solicitor in Dorset and the West Midlands

Almost all of Karen’s work comes from personal recommendations. This is because of her pragmatic and proactive approach. As a result she has an enviable reputation built on commitment to her clients.

All of your family law needs in the Bournemouth and Birmingham areas can now be met by Karen at our competitive rates.

She offers our clients a first class service and we are proud and delighted she is on our team.

Wills and Lasting Powers of Attorney

In addition we can now assist with the preparation of wills and Lasting Powers of Attorney. Everyone should have a will but it is even more important if you have children, or you own property or business, or have savings, investments, insurance policies …

This is certainly a valuable addition to the services Just Family Law already offers you and your family.

To book a 20 minute telephone consultation, or a Skype review with Karen, or an initial face to face meeting, please telephone 01202 798199 or email karenlayland@just-family-law.com

JUST FAMILY LAW are specialist divorce and family law solicitors offering personalised legal solutions. We offer collaborative law which is especially relevant in providing solutions tailored to your family’s needs. This includes same sex couples and their families. Visit our website just-family-law.com The topics covered in this blog post are complex and are provided for general guidance only. Therefore if any of the circumstances mentioned in this blog have application to you, seek expert legal advice.

image Karen Layland by Just Family Law

 

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Posted on September 11 2018

Grey Divorce? Making the Best of Life

Retirement is on the horizon or has already arrived. The children are, or will shortly be, independent. Now is the time to make the best of life but couples can find they have grown apart, or that they cannot progress together beyond their roles as parents. Is it time for a ‘Grey Divorce’?

Nowadays there is no stigma attached to divorce, whatever your age. And with dating apps and a burgeoning population of single, older people, there’s less chance of being lonely.

Divorce always involves lots of decisions and emotions, some of which are hard. You can get all the advice in the world but there will still be surprises. So make sure you give a bit of thought to these points.

Punch & Judy or keep it amicable? …

The answer is, of course, to try to keep it amicable. If possible agree the financial aspects by negotiation, collaborative law or mediation

And as for the divorce proceedings, with the Government consulting on ‘no fault’ divorce, things are set to become easier. But for now you need to think whether you want to start proceedings yourself or whether you need a fixed fee quote from an expert family law solicitor.

What are the grounds for your divorce? See my blog, Grounds for Divorce, 5 Things You Need To Know.

Family home or pension …

You might have lived there for decades, perhaps you brought up your children there. But don’t fall into the trap of keeping the family home rather than receiving a realistic share of the pension pot. You could face an old age of financial insecurity whilst your ex is sitting pretty.

Pensions especially final salary policies can be worth a great deal more than the family home. You might plan to realise cash from the family home when you need it in the future but this is likely to represent only a tiny fraction of the capital required to provide you with a pension.

Pensions may be shared, or offset against other assets, or maintenance may be paid to equalise income. See my blog, Pensions on Divorce, What Can You Expect? for answers to the following:

  • How are pensions valued?
  • Do you need an actuary?
  • What is your entitlement to state pension?
  • How to keep your pension out of the divorce
  • What is a pension sharing order?
  • What is offsetting?
  • Can you claim your ex’s state pension?

Investments, savings and inheritances …

Through the course of your life you may have accumulated significant assets. How can you protect them in your divorce? See my blog, Ring Fence and Protect Assets on Divorce.

Grey divorce: is maintenance the answer? …

Special considerations apply in older divorces. Earning capacity might be limited because of age or illness, and this might suggest long term maintenance is required. Or one or both of you may have reached retirement age and pensions may be in payment.

See my blog, Maintenance and Clean Break On Divorce. This explains entitlement to maintenance, and the many different forms it can take.

Your new relationship …

Protect your assets and peace of mind by entering into a cohabitation agreement or a prenuptial agreement. This doesn’t mean you don’t love and trust each other. It simply demonstrates you’re not together for the money.

See my earlier blog, How to Protect Your Assets with a Prenuptial or Postnuptial Agreement

How about the children? …

If you are remarrying or buying a property with a new partner you need to give careful consideration to how your estate is to be distributed in the event of your death. To what extent do you want your new partner to benefit as opposed to your children? Avoiding the issue could leave your loved ones with a dispute or possibly even a court case under the Inheritance (Provision for Family and Dependants) Act.

Get advice from an expert solicitor and make a will. This is also a good opportunity to safeguard your future with a Lasting Power of Attorney.

Grey divorce? Making the best of life …

Contact  Joanne Houston on 01962 217640 for free advice on Grey Divorce. In this 20 minute session we will review your situation and how you can achieve your objectives.

See my blog about how to get the best financial settlement on divorce.

Did you know there are different rules for Short Marriages?

JUST FAMILY LAW are specialist divorce and family law solicitors offering personalised legal solutions. We offer collaborative law which is especially relevant in providing solutions tailored to your family’s needs. This includes same sex couples and their families. Visit our website just-family-law.com The topics covered in this blog post are complex and are provided for general guidance only. Therefore if any of the circumstances mentioned in this blog have application to you, seek expert legal advice.

image Old Couple In Love by Ian MacKenzie on Wikimedia Commons

 

 

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Posted on March 10 2018

Pensions on Divorce – What Can You Expect?

Pensions On Divorce

Worried about pensions on divorce? Make sure you know how to get your fair share, and how to protect a pension which shouldn’t be included.

Valuing Pensions on Divorce

Ask your pension provider for the Cash Equivalent Transfer Value of your pension. This will give you an idea of the value of the pension but it can be inaccurate.

If you’re making a claim over a valuable pension you should consider obtaining a valuation from an actuary.

Pension Actuarial Reports

This will help you get a fair share of a valuable pension. An actuary will work out the realistic value. He or she will advise how best to divide the pension to provide equality of income in retirement. This will for example take into consideration your different life expectancies. If you’re a woman, you will need more than half as you’re likely to live longer.

State Pension after Divorce

Find out your entitlement to a State Pension when working out your financial settlement. Here’s a link to a form you can complete to obtain a forecast. Or you can phone, or email. You can obtain an online forecast if you have an HMRC account

Family Home or a Share of Ex’s Pension?

It’s a hard decision. But in the long run you could face a difficult retirement with a limited income whilst your ex is reaping the benefit of a valuable pension pot. Make sure you get expert legal advice. Most Divorce Solicitors offer free initial advice – we certainly do.

What is Offsetting?

This is where one of you keeps their pension and the other gets more property or savings etc instead. But there’s always the risk the pension will ultimately provide more security in retirement than the alternative assets.

Can I Keep My Pension out of the Divorce?

Try arguing it’s a non matrimonial asset. Can you say some or all of it accrued before the marriage? Or can you offer a greater share of other assets to compensate? But the only fool proof method is to enter into a Prenuptial Agreement before the marriage, or a Postnuptial Agreement during the marriage.

See my blog Ring Fence & Protect Assets On Divorce.

Pension Sharing on Divorce after Retirement

One approach is to equalise your incomes with a pension sharing order or a maintenance order. This is a complex area and you should seek expert advice from a family law solicitor.

Getting Married?

If you don’t want to risk your pension (or other assets), consider a Prenuptial Agreement. Here’s a helpful factsheet on the subject.

What is a Pension Sharing Order?

It gives away a share of a pension by transferring a percentage of it into another scheme. The Order can be made by consent so you don’t have to go to Court. It’s served on the pension provider. Bear in mind pension providers charge fees for sharing pensions. Here’s a link to the form that needs to be filled in. It’s annexed to a Consent Order. (Read here how a Consent Order will protect you).

Can I get my Ex’s State Pension?

You may be able to use your ex’s National Insurance Contributions to boost your State Pension. The Additional State Pension can also be shared on divorce. Here’s a helpful link to the Pensions Advisory Service

Pensions on Divorce

Contact  Joanne Houston on 01962 217640 for free advice on Pensions on Divorce. In this 20 minute session we will review your situation and how you can achieve your objectives.

See my blog about how to get the best financial settlement on divorce.

Did you know there are different rules for Short Marriages?

JUST FAMILY LAW are specialist divorce and family law solicitors offering personalised legal solutions. We offer collaborative law which is especially relevant in providing solutions tailored to your family’s needs. This includes same sex couples and their families. Visit our website just-family-law.com The topics covered in this blog post are complex and are provided for general guidance only. Therefore if any of the circumstances mentioned in this blog have application to you, seek expert legal advice.

image Bubble Couple by Martin Mutch on Wikimedia

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Posted on November 7 2017

Ring fence and protect assets on divorce

Ring Fence and Protect Assets On Divorce
Ring Fence and Protect Assets On Divorce

Is it possible to ring fence and protect assets on divorce? The answer is, yes, sometimes. But this is a complex area: if you are at all unsure, please take advice from an expert family lawyer. In this blog I consider the following questions:

  • matrimonial or a non matrimonial asset
  • can I protect my inheritance
  • can I ring fence my business
  • shall I transfer my assets to someone else
  • how are assets split on divorce
  • what’s the best way to ring fence and protect assets on divorce?

Let’s start with an example …

I have a friend who’s a magician. Her husband wants a divorce and furthermore he wants half of everything, including her magic cabinet.

Is it a matrimonial or a non matrimonial asset?

Non matrimonial assets can sometimes be kept out of the pot for division. They can include:

  • assets built up before the marriage
  • inheritances
  • businesses

But if there aren’t enough matrimonial assets left to fulfil her husband’s needs – for example for housing – non matrimonial assets can be used to plug the gap.

Is it possible to ring fence and protect inheritances?

My friend is particularly fond of her magic cabinet as her grandfather left it to her in his will. 

Timing is important. Was the inheritance received before or during the marriage, or as the couple separated? And what happened to the inheritance in the meantime. Did they mix it with their matrimonial assets? Did they keep it separate?

Can a business be ring fenced?

I advise my friend that her husband might make a claim over her business – if it has any value.

She laughs. She tells me her assets comprise trick cards and a white rabbit. As for income: she does it all for charity. My friend and her husband live off their wages from their respective jobs. 

What if her business had valuable assets and an income? See my blog How to protect business on divorce. 

How about transferring assets to someone else?

My friend has a savings account and some shares. She’s thinking of transferring them to her sister.

She risks the Court freezing her assets and imposing a costs order. If she hides her assets she could go to prison for contempt of court. Both she and her husband must give full and frank disclosure of their finances. See my blog Financial disclosure on divorce – 10 things you need to know.

How are assets split on divorce?

What will happen to their house, their savings and pensions?

I advise her the starting point for division is a fifty fifty split although there are special considerations. These include the care of children, the extent of the couple’s wages and their earning capacity. Also their standard of living during the marriage, and their ages. The length of the marriage is important, too. As is their health. Lastly what the couple put into the marriage financially, and their individual financial needs.

What’s the best way to ring fence and protect assets on divorce?

The good news is she has met someone new, a fellow magician. It’s early days, and she wants to get her divorce sorted out first, but who knows, this could be the real thing.

I advise her if they decide to tie the knot, she ought to think about a prenuptial agreement. She says she will certainly keep this idea up her billowy sleeve along with her magic cards and scarves.

Contact  Joanne Houston on 01962 217640 for free advice on ring fencing and protecting your assets on divorce. In this 20 minute session we will review your matrimonial financial situation and how you can achieve your objectives.

 

JUST FAMILY LAW are specialist divorce and family law solicitors offering personalised legal solutions. We offer collaborative law which is especially relevant in providing solutions tailored to your family’s needs. This includes same sex couples and their families. Visit our website just-family-law.com The topics covered in this blog post are complex and are provided for general guidance only. Therefore if any of the circumstances mentioned in this blog have application to you, seek expert legal advice.

image credit: Ungár Anikó bűvész by Fortepan/Urbán Tamás on Wikimedia Commons

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Posted on October 31 2017

Special Contribution On Divorce: How To Get A Bigger Share Of The Assets

What has Special Contribution on Divorce got to do with football?

We've been known to get a bit obsessed about football here at Just Family Law. But what has football got to do with Special Contribution On Divorce you may ask? The answer is it’s very important indeed. This is because it raises a vital question. And that’s not whether the England team is a “work in progress”.

Special Contribution On Divorce: How To Get A Bigger Share Of The Assets

I expect your days are busy with work or raising a family. Or perhaps both. But did you know that some people say their contribution to family life goes well beyond the everyday. They say they’ve made a special contribution to the family finances because they are uniquely gifted. In family law circles we call this a “stellar contribution”. And it’s important as it means a bigger share of the finances on divorce.

But what has this got to do with football?

Ryan Giggs’s marriage has sadly broken down. His lawyers are already saying he made a stellar contribution and he’s claiming a greater share of the finances.

Special Contribution On Divorce: Is It Just Plain Wrong?

Some say it’s unfair as marriage should be equal. And that it devalues homemaking and childrearing.

The case of Randy Work and Mandy Gray is a prime example. Their marriage lasted for eighteen years and they had two children. Randy worked for Lone Star in Japan. Mandy relocated to be with him. But their marriage failed after they returned to the UK. He said he wanted sixty one percent of the family’s wealth because he had created it. He claimed he was a very special individual.

Special Contribution On Divorce: Is It Discriminatory?

There was indeed a multimillion family pot for division, earned mostly by Randy Work. Mandy Gray argued the whole concept of special contribution was discriminatory. She said her contribution had been to make a home for the family. Homemaking and childrearing are not, of course, jobs that are paid.

But how are assets usually split on divorce? The starting point is equal division although there are special considerations. These include the care of children, the extent of the couple’s wages and their earning capacity. Also their standard of living during the marriage, and their ages. The length of the marriage is important, too. As is their health. Lastly what the couple put into the marriage financially, and their individual financial needs.

Had Randy Work Made A Special Contribution On Divorce?

The Court of Appeal said Randy Work’s contribution wasn’t all that special. It did not arise from his “exceptional and individual quality”. He was, basically, an employee, even if an extremely highly paid employee. He received only a half share of the assets.

The Court of Appeal said the concept of special contribution, in other words, of stellar contribution, only rarely applies.

Did Ryan Giggs Make A Special Contribution, A “Stellar Contribution”? Is It Enough To Be A Footballing Legend?

Ryan and Stacey Giggs married in 2007 and have two children. Does he have an “exceptional and individual quality?” His lawyers say his career has been like no other.

The stats say it all. Over 1,000 competitive senior appearances. 13 league titles. Four FA Cup winner’s medals. Three League Cup winner’s medals. Two UEFA Champions League winner’s medals.

Giggs was loyal to one club throughout his career, namely Manchester United. His legend status grew from his debut goal in the Manchester derby of 1991. But it was only set to increase with his career defining goal at Villa Park in the FA Cup semi final against Arsenal in 1999. This outstanding success lead to the treble of that year. And then there was his supreme class in defeating Juventus in the 2003 Champions League campaign. Not to mention his stunning destruction of City in the 2009 derby.

Did Ryan Gigs Make A Special Contribution, A “Stellar Contribution”, Or Was He Simply In The Right Place At the Right Time?

But there’s something everyone needs to remember. Ryan Giggs was employed from the age of fourteen by Manchester United, and was part of the exceptional Class of ’92. Was he simply in the right place at the right time?

The Court has to decide whether Ryan Giggs is truly a genius, and deserves to be compensated for his stellar contribution. Or was he simply a highly paid employee of an extremely successful football team?

And so the debate goes on.

It’s a tricky one, isn’t it? What do you think?

Contact Joanne Houston of Just Family Law on 01962 217640 for 

a FREE telephone consultation on any family law issue

JUST FAMILY LAW are specialist divorce and family law solicitors offering personalised legal solutions.

Visit our website just-family-law.com

The topics covered in this blog post are complex and are provided for general guidance only. If any of the circumstances mentioned in this blog might have application to you, you should seek expert legal advice.

image credit: Ryan Giggs and Federico Macheda of Manchester United wait to kick off against the MLS All Stars, July 2010 by Allison Pasciuto on Wikimedia Commons

 

 

 

 

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Posted on September 27 2017

How To Protect Inheritance On Divorce: is a Prenuptial or Postnuptial Agreement the answer?

Protect Inheritance On DivorceSophie has contacted me for urgent advice. She wants to know how to protect inheritance on divorce. Her partner, Bob, has whisked her away to Rome for the weekend, gone down on one knee, and proposed. But she’s having cold feet because what happens if it doesn’t work out? She doesn’t want Bob to get his hands on the fortune she’s inherited from her family.

On marriage breakdown every asset is up for grabs. 
But it has to be a "matrimonial asset" unless there is a strong case based on need.
It is sometimes possible to protect inheritance on divorce.

Is An Inheritance A Matrimonial Asset?

It depends.

Often an inheritance is regarded as non matrimonial and so not up for grabs, particularly if it’s a short marriage. And timing is important. Was the inheritance received before or during the marriage, or as the couple separated? Even though Sophie inherited before getting married it could be bad news if she and Bob split up after a long marriage. It depends on what happens to the inheritance in the meantime. Will the couple mix it with their matrimonial assets? Will they keep it separate?

The more separate it’s kept the better, but still that’s no guarantee.

What About “Needs” When Assets Are Divided On Divorce?

The starting point for division of matrimonial assets is an equal split but certain circumstances are taken into consideration including:

  • The Children’s Welfare
  • Income and Earning Capacity
  • Financial Needs
  • Standard Of Living
  • Your Ages, And Length Of The Marriage
  • Physical Or Mental Disabilities
  • Contributions To The Marriage

What if an equal division doesn’t provide enough for a suitable home for one of the couple? They are likely to get a larger share of the assets. And if there aren’t enough matrimonial assets? Non matrimonial assets can be thrown into the melting pot to meet needs. This includes an inheritance.

The Millionaire Who Lived In A Three Bed Semi

A Court case in 2011 throws some light on how to protect your inheritance on divorce. It’s called K v L. We don’t know the couple’s names or where they lived as the Court agreed to protect their anonymity for the simple reason that they wanted their three children to lead normal lives.

This is the story of an extremely wealthy wife. 
Neither of the couple ever needed to work but despite the wife’s millions 
they lived modestly in a three bed semi worth £225,000. 
They ran an inexpensive car and no single item in their home was worth more than £500.

The wife had inherited shares in an Israeli company when she was fifteen. When the couple first cohabited in 1986 the shares were worth £300,000. When they married in 1991, £700,000. When they separated in 2007, £28m. By the time of the court hearing in 2011, £57m.

After twenty one years of marriage the wife left the husband in 2007 taking the children with her. She bought another modest property in the same London suburb, close to the husband who remained in the family home.

The husband told the court he wanted £2m to buy a house in central London, and £450k to buy a house in Israel. Also £60k to buy a new car. And maintenance. All in all he claimed £18m. But the court said the wife’s inheritance was a “non matrimonial asset” and on a generous assessment of his needs he would only get £5m. He was not otherwise entitled to share in her inheritance.

Will A Prenuptial Agreement Protect Inheritance on Divorce?

K v L was an unusual case and relied heavily on the modest lifestyle of the couple. I told Sophie not to worry. She could take steps to protect her inheritance on divorce with a prenuptial or post nuptial agreement. She liked the idea and said she would talk it over with Bob. I have written an earlier blog on the topic of agreements.

How To Protect Inheritance On Divorce

Contact  Joanne Houston on 01962 217640 for free advice about how to protect your inheritance on divorce. In this 20 minute session we will review your situation and how you can achieve your objectives.

JUST FAMILY LAW are specialist divorce and family law solicitors offering personalised legal solutions. We offer collaborative law which is especially relevant in providing solutions tailored to your family’s needs. This includes same sex couples and their families. Visit our website just-family-law.com The topics covered in this blog post are complex and are provided for general guidance only. Therefore if any of the circumstances mentioned in this blog have application to you, seek expert legal advice.

Image  A Baby Wild Boar by Sander van der Wel on Wikimedia Commons

 

 

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