Ask the Experts

Lump sums

Date: 7 Jun 2006 Answered by: Mark Keenan, Editor, Divorce-Online
Q.	My wife and I separated just over 2yrs ago and she remained in the marital home with our 2 children (16 & 12). As she only works part time I have continued to pay all the bills and mortgage payments since then. At present the mortgage is in my name only. We both have new partners and she now lives in the marital home with her new partner. He now wishes to purchase the house for them all to live in, which will raise £100k equity and put an end to me paying for everything. My wife and I are willing to agree a regular maintenence amount for the children in place of me paying all the bills. Please advise what I can expect out of the equity and a reasonable amount for maintenance. Things are amicable and I would like a speedy solution as I intend to jointly purchase a home with my new partner.
A.	On the face of it you would be entitled to 50% of the equity in the property as she noe has the means to support herself. In normal cases where the wife does not have the means, the Husband may have his share paid out when the house is sold but in this case it may be that you can receive all your equity in one go.
Date: 14 Oct 2003 Answered by: Mark Keenan, Editor, Divorce-Online
Q.	I have been divorced since 1997, but the marital home sold only in 2001. The only remaining obstacle to a clean break settlement is a joint endowment policy. My ex refuses to accept an offer of cash in return for assigning the policy to me. Also, she has decided not to let a court decide. The policy cannot be cashed, changed nor paid out on termination without her consent. She has never paid any of the premiums. If I continue to pay, my money sinks into a pot that will never be released. If I stop, the existing value will freeze and never be realised. I need the freedom to use my money as I see fit, and yet doing so will compromise my investment to date. Can I make her decide by legal force either to accept my offer or go to court? Thanks.
A.	If you cannot get her to agree, you have no choice but to issue an application for ancillary relief. If you already have a court order, then you need to apply to the court for an order to have the judge sign the paperwork on her behalf.
Date: 23 Apr 2002 Answered by: Mark Keenan, Editor, Divorce-Online
Q.	My partners wife left the family home 5years ago. He has requested a divorce on several occassions she has refused. He is now seeking a divorce because of length of time. How much of the house can she legaly claim, no money of any form has been received from her for child support or property upkeep in the last five years. Mortgage is still in joint names.
A.	Technically she is entitled to half the equity in the former matrimonial home if she is the joint owner. I would advise that you tell her you will expect a clean break with the house being transferred without payment to see what her reaction is. It may be worth thereafter considering offering her a small lump sum if she insists on making a claim as to do do maybe cheaper than having to fight her through court. In any event you should get legal advice if the matter cannot be settled between them.
Date: 11 Nov 2001 Answered by: Mark Keenan, Editor, Divorce-Online
Q.	i found out four months ago that my wife had been (and stil was) having an affair. we've just bought a new house and have moved into it together. she still sees him nearly every day. she moved out of our old house for six weeks this summer to be with him but came back to me. i've been considerate over the past weeks but feel i need some advice. we've sat down together and worked out a financial package which would mean me keeping the house and my wife getting a lump sum of £30k. she has now become adamant that the money due to her should be with her a.s.a.p. i'm unable to do this at the present without selling the house and moving elsewhere (something i'm not prepared to do) where do i stand? the £30k incorporates her share of the equity of our old house (£15k) plus her share of our savings (£10k) plus half the value of our car. all our shared policies will continue to be shared and do not form part of this calculation. please advise me as to how i stand?
A.	If you have agreed to give her £30,000 then you will have to either sell the house or raise the money elsewhere unless she is prepared to wait for it, but until when? Would the policies, if sold be sufficient to raise her share?
Date: 10 Oct 2001 Answered by: Katie Went, Solicitor, Bower & Bailey
Q.	I have been divorced since March but am still negotiating finances.I have been made redundant in July.I think I am right in saying I have to put my redundancy money into the pot, but do I have to put my notice pay of 11 weeks into the pot? Due to the fact that the company has gone into liquidation I have had to claim the government payout .Can I not claim that I need that money to live off while out of work.I am currently residing at my Mothers who is retired and not got very much money.
A.	I think that there is some scope for arguing that your redundancy should not necessarily go into the pot. However without knowing all the facts of the case it is hard to give exact advice. The money is obviously paid to you to assist you in managing until you find alternative employment. If you have another job then it may be difficult for you to argue that point. If not then I think it will apply.
Date: 5 May 2001 Answered by: Katie Went, Solicitor, Bower & Bailey
Q.	I am in the very first stages of separating from my husband, following a marriage of 21 years. I have had a fixed fee interview with a solicitor, and although I have grounds for unreasonable behaviour (a history of violence), I have decided to opt for legal separation as the easiest and least painful course. My solicitor tells me that she can draw up a Deed of Separation, which entails disclosing financial assets on both sides. My concern is that I have several paintings which were gifts to me, which I assumed I would be able to keep. I have been told that these are, in fact, joint possessions. My husband intends to give up his job in the next few weeks, as he is earning a very low salary. His chances of re-employment are low, as he is 54 and has an extremely poor employment history. I will also have no choice but to give up my own self-employed local business, as I will not be able to afford to buy a house in this area once the equity from the sale of the house has been divided 50/50. We have a 19 yr old daughter. Because of the above I will have no claim against his income. Do I have to sell the paintings and split the proceeds with my husband?
A.	I am afraid that I cannot say yes or no. If the paintings are valuable then technically they do form part of the assets of the marriage. However you could try and advance the argument that they were gifts and therefore should not wholly be put into the pot as it were. What you perhaps could do is offset the paintings against any equity in the home. However without all the financial figures it is difficult for me to advise.
Date: 4 Apr 2001 Answered by: Mark Keenan, Editor, Divorce-Online
Q.	Me and my wife have been married for just under 2 years. my wife has a child from a previous marriage. I currently own my own property in my name only, we wish to divorce each other on account of constantly arguing with each other. The house is up for sale yet my wife is demanding £5000 from the sale. If we sell the house, and split the money it won't amount to £5000 each. I need to know where I stand regarding the sale of the house and to the welfare of the child? what also can she have me for?
A.	If the child has support from another source then he/she will not be taken into account. However if there is no support and you have treated the child as a child of the family, the court will not wish to see it homeless and may make appropriate orders to secure housing. However that said, you have a short marriage and the court will usually look at a 50/50 split of any matrimonial assets and no more. If there is insufficient equity to provide for a 50/50 split then you may wish to hold your ground as the costs of taking this matter to court would wipe out any advantage to her of doing so. It would be advisable to get legal advice for your individual circumstance.
Date: 1 Apr 2001 Answered by: Tracy McCormack, Solicitor
Q.	In the following circumstances,would a court be likely to award a lump sum to my husband? We both earn approximately the same and have similar sized mortgages.Our three children live with me.We have a house each, each in our own names only, we have no joint assets.My house is worth £150000,his £65000. Neither of us have any savings to speak of, but he has an endowment which will pay off his mortgage in about 10 years. I have a repayment mortgage with 22 years left.I obviously have more equity in my house at the moment.Would the court award him money to make up the difference?
A.	I am afraid that the brief synopsis you have given is not sufficient to give you an accurate prediction of the type of order a court might make. Any solicitor would need to know the equity value of each house, and details of any pensions, other assets or debts. In addition information regarding the length of your marriage and the ages of your children would be relevant. May I suggest that you make an appointment to see a specialist family lawyer and take with you as much information as possible.
Date: 27 Mar 2001 Answered by: Tracy McCormack, Solicitor
Q.	My ex-wife and I have been divorced for over a year. All financial settlements were agreed and settled before the divorce was made absolute. We employed one solicitor and shared the costs. My ex was then advised to apply for a consent order which originally she agreed to pay. I have received threats that if I do not pay for the consent order she will try and take a share of my pension, despite the fact that I resolved all financial settlements by paying a lump sum. This was confirmed by a letter I received from her solicitors stating that"All financial issues concerning the marriage have now been settled amicably between yourselves and that neither of you have any claim upon the other for any other financial relief." Despite this letter and the absolute, does she have any claim upon my pension or any other financial funds? There are no children involved.
A.	The only way you can guarantee no future claims is by obtaining a court order and the consent order route is the most inexpensive way of making sure that there are no further claims. A letter or even a separation agreement do not bind the courts although they have to take them into account.
Date: 26 Mar 2001 Answered by: Katie Went, Solicitor, Bower & Bailey
Q.	What happens to the balance in a joint savings account on divorce? My husband and I are at the moment contributing equally to this. Is it true that if i obtain a divorce then i am not entitled to these savings even though i have contributed equally?
A.	Joint accounts are joint money whether you have contributed to the account or not. The balances in said accounts go into the 'pot' when calculating finances of the marriage along with all other assets. In any event the account could not be closed without both of you consenting to the same.
Date: 11 Feb 2001 Answered by: Tracy McCormack, Solicitor
Q.	Hi, this seems a rare situation. Married 3 years, during which I went to university and wife worked. I took out substantial student loans (from home country - not England) to help pay for mortgage etc. Now I want divorce. Wife has admitted adultery on court papers. She got pregnant as a result. The Father has no knowledge of his child. Wife is now backtracking from our previous oral agreement on how to solve our finacial obligations. Mainly the student loan, taken in my name but helped pay for our mortgage. How would the court view the fact she has a child, not mine, and she earns about ~50% more than I (me £24K, she £32K), but doesn't get support from the father? What are my chances of getting her share of the student loan back in lumpsum? (50%) Thanks!!
A.	I am presuming that the loan is in your sole name and from a bank or other type of financial institution. You do not say whether the oral agreement with your wife was made at the time the loan was taken out or at the time you decided to separate/divorce. However in any event any agreement between your wife and yourself cannot bind the court. The fact that your wife has committed adultery would not be taken into account by the court when considering any financial settlement. However the court would take account of the fact that your wife has a child, albeit not yours, whom she supports. The court would consider a number of factors set out in the appropriate legislation, these include: - 1) Both of your current salary levels, together with your future prospects 2) Both of your current outgoings and debts 3) Any other assets either of you may have The above list does not include all the factors the court may consider, but I trust they illustrate the type of things the court may consider. Without further information it is difficult to predict what chance if any you would have in securing a lump sum to in effect cover half of your student loan. I would suggest that you contact a local solicitor to advise you on this point.
Date: 18 Jan 2001 Answered by: Hilary Bowles, Solicitor, Fullagarbrooks
Q.	Frank I need a quick answer to this please, went to court today (first hearing) to deel with financial settlement, at the court my ex's solicitor said they are going to argue the case that the original consent order that i did actually sign but the judge threw out because of the financial unbalance is legal contract, and therefore should still stand there is a seperate hearing arranged for this , on the way out his solicitor got me to one side and said my ex was willing to offer 3k more still way short of half what chance do they have winning this . also if i do decide to accept their new offer surely the judge will throw it out again for being to low
A.	Virtually impossible to answer without more information. Were you advised by your own lawyers when signing the consent order? Did you receive full and frank financial disclosure prior to signing? If yes to both these questions the Court could find a concluded agreement at arms length? I looked back through your previous e-mails Clare and there was no mention of this consent order. Hope this helps. I can't advise on a particular offer because I have not had sight of full and frank disclosure to view nor do I know all the circumstances of the case? This is beginning to get complex you should instruct someone quickly. Frank
Date: 1 Oct 2000 Answered by: Katie Went, Solicitor, Bower & Bailey
Q.	My divorces is at the NISI stage - I think my ex husband is going to put in a claim for a lump sum settlement on the grounds that I should pay half of a personal loan which he took out during our marriage and at the time we had a joint bank account - Am I liable - I don't feel I should have to pay this?
A.	If the loan is in his sole name then you cannot be held responsible. If there are other assets of the marriage which can be offset against the loan and it can be shown that the money was used for joint purposes, your Husband may be able to obtain these to use against the debt. If there are no assets then the liability can only be his if the loan is in his sole name.
Date: 14 Sep 2000 Answered by: Katie Went, Solicitor, Bower & Bailey
Q.	Before we were married and subsequently afterwards my wife and I formed a company called the Perpetual Group. During this time my contribution to the day to day expenses was less than my wifes. However i paid for holidays, dinners out and most major purchases. When the company was making money any loans my wife made to the company where paid in full in addition she recieved a large cash payment. Since the collapse of the business i am left in financial ruin but my wife has still her savings in full, her trustfund and allowance. Do I have any claim on such monies
A.	It is assumed that you are still married but that divorce proceedings are contemplated. In that case, during the course of the divorce proceedings it is open to either the husband or the wife to apply to the Court for financial orders. The Court will consider the income, property and other capital and assets of the marriage, including pensions and irrespective of whether those assets are owned jointly or in the name of the husband or the wife. It is quite possible that in circumstances where the wife has a large amount of capital, whilst the husband has none, that orders can be made for the payment of a capital lump sum from the wife to the husband. Clearly, more information is needed as to the amounts involved and the details of the financial and other circumstances of both you and your wife but you should seek detailed legal advice from solicitors as to your position as soon as possible.
Date: 31 Aug 2000 Answered by: Mark Keenan, Editor, Divorce-Online
Q.	I am recently divorced and my husband is refusing to pay me £1000 which he verbally agreed to pay prior to the divorce.How can I get this money as there is no written agreement between us. Also would I be able to claim the costs of any action from him?
A.	Unfortunately it will be difficult to prove and as it was made without legal advice you could not enforce the agreement as the court has discretion even where an agreement has taken place. You would have to apply to the court for ancillary relief and request a lump sum. Whether you would be awarded this would depend on the assets avaliable, your relative contributions, and of course need. If you have had a short marriage the court is likely to take the view that you take what you put in and any jointly obtained assets are divided 50/50. I would advise you either see a Solicitor or the CAB to progress your claim. Details of the Ancillary Relief procedure cab be found on the site in The Process - Applications
Date: 30 Aug 2000 Answered by: Katie Went, Solicitor, Bower & Bailey
Q.	My wife is asking for £60000 in compensation to the fact that I suffer from psoriatic athiritis and that I will fully refused to consumate the marriage. 1. I loved and cared for my wife showered her with presents in return for which She wanted the Her name on the deed to the House which was being built prior to getting married, she was suffering from Vaginismus (frigidity) and also claims that the petition against me is for unreasonable behaviour of a sexual nature which occurred in the bedroom. She claims that my condition will make me wheel chair bound within three years. This is ludicrous its like saying people with glasses will all go blind in threee years.... my "condition" is being used in a disgusting manner, I have been blackmailed by her and her family and after six months of blind love I am involved in saving my good name which has been dragged through the mud. please advise me.... thanks.
A.	If the marriage has not been consummated then your wife is entitled to apply for an annulment to the marriage. If the marriage has been consummated then your could petition for divorce based upon your 'alleged unreasonable behaviour'. It is hard for me to say whether that petition will succeed but it is open for you to defend it. Whether there is a petition for divorce or nullity your wife can apply for financial relief. As I have no information on your financial circumstances or the length of the marriage I cannot say whether her claim for £60,000 is reasonable. Check out the website for FAQ's on what the Court consider when dealing with finances. However if you have only been married a short space of time then it is unlikely that any claim your wife may have will be great.
Date: 18 Jul 2000 Answered by: Mark Keenan, Editor, Divorce-Online
Q.	I have just had my decree absolute served after a diy divorce. I was only married for 18 months and i verbally agreed with my ex that i would pay him a certain sum of money in 2 years time which i intend to do. Now he is being funny and i am getting solicitors letters demanding payment now. Now we are actually divorced can he make me go through solicitors to give a statement of means and demand half of my assetts. He seems to think that he can do this up to a year after we have been granted decree absolute. There are no children involved and he has willingly signed over the title deeds to me as I have always paid the mortgage anyway
A.	Your Husband must apply for Ancillary Relief to the Court to obtain a lump sum as you imply he seeks. Your problem is evidence, however the fact that he has signed over the house to you already would indicate some agreement had been reached. I doubt very much he would get half your current assets, however there may be an argument that he should receive a lump sum based on the value of the house when he left, minus the mortgage and any other debts paid. If the amount you agreed is less, you will have to justify why it should be less, ie you made more contribution etc. This puts you in a difficult position and I would suggest you see a Solicitor asap who should be able to either make him wait or try to negotiate a settlement that is close to the agreement you reached.
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