Endowment on divorce

MagsyB

My STBex and I have a 25 year endowment since Oct 1993 with Friends Provident.
It costs £56 per month with a life assurance of £42000.
The surrender figure is just under £12k.
I will be buying STBex out and have seperate life cover which will cover this new mortgage (£108k).
So wtd - surrender or sell???
If its to be sold - how???
Anyone????

thanks in advance

MagsyB

Mrs_Bumble

Speak to a good IFA, they can look at all your options and get a price for selling if that is the way to go.

MagsyB

Thanks Mrs Bumble

I've not used a IFA before - what do you recommend one which charges a percentage or a fee?
I'm guessing a percentage in case we decide to surrender??? what do you think

Thanks again
MagsyB

Mrs_Bumble

No worries.

Depends on what you are comfortable with and what you can afford. If you have the cash to hand and can afford the fee then that may work out cheaper etc but just see.

Get a recommendation for an IFA from friend/family/work colleagues etc as word of mouth is a really good starting point.

gizmo111

Who will have the endowment as part of the financial settlement?

MagsyB

Hi Gizmo
I was planning on 50/50 split I did think of taking it on myself but thought that even taking an extra £6k at circa 4.5% over about 25 years is going to be more then this endowment will give back

What are you thinking??????

gizmo111

I was just thinking that endowments are good negotiating tools to swap for equity as you'll have a lower mortgage and your ex will have the cash with no ties to each other, usually your solicitor will sort it out as part of the settlement.

EdInvestor

Make sure you sort out the status of the endowment before the final settlement is agreed.It probably easiest to surrender it and split the money but if both signatures are needed and there is later animosity nothing will ever happen.There are many such policies in 'divorce limbo'.