Endowment policy after divorce (not pinned to mortgage)

Stanleymds

hello,

I wonder if anyone could provide some advice?

Im going through a divorce and the process of who's entitled to what.

I have an endowment policy that im thinking of cancelling. I took the policy out before the the marriage, and it's not pinned to my current mortgage in any way. I've been the only person paying into the policy and its only in my name. I took the policy out in 2002 paying around £90/month - more now, with inflation.

My main question is, how much if any, is my soon to be ex-wife entitled to? What would happen if i cancelled the money now and keep the cash? I kinda think im entitled to the whole lot...

We are going through mediators so plan to try and reach agreements in person.

views? (not smart comments about me trying to hide money, please

loftus

How long have you been married and are there any children?

Stanleymds

2 years and 1 month, one child born after the marriage.

loftus

Then it doesn't matter that it's in your name and you've been paying it.
It is an asset of the marriage and the return from it goes into the pot.

Stanleymds

Asset of the marriage? oh its a cruel cruel world...

loftus

As soon as the child was born everything changed.

If you were splitting after just over two years marriage without children it would be classed as a short marriage and assets brought into it would have been retained by each partner. Only assets built up during the marriage would have been divided on a 50/50 basis.
Once you had your child, on divorce they become the priority and all the short marriage rules go out of the window. If your wife is the primary care giver and she needs more of the pot to ensure security for the child she will get them. If the proceeds of the endowment help to ensure this she will get a share.
Unless there are big assets or your ex to be has a large income expect her to receive more of the pot than you or some of your share - if it is house equity - to be deferred.

Stanleymds

Thanks for your advice,

I understand that my son is the priority.

If i dont cancel the policy she would of got a share of the maturity fund. What if i cash it now? and tie the money up in another asset? Would the courts order i sell that asset - a car for e.g.

To reiterate, to any readers, my soon to be ex wife is not hard done by in any way. This endowment is just a thing i was paying into and almost forgot. We are not relying on it in any way. Im just trying to understand all angles.

loftus

If you liquidate the policy and "invest" it in another asset that you retain it is likely that your wife will receive a larger share of other assets to compensate.

floss2

Stanleymds wrote: »

....If i dont cancel the policy she would of got a share of the maturity fund. What if i cash it now? and tie the money up in another asset? Would the courts order i sell that asset - a car for e.g.

To reiterate, to any readers, my soon to be ex wife is not hard done by in any way. This endowment is just a thing i was paying into and almost forgot. We are not relying on it in any way. Im just trying to understand all angles.

How long have you had the policy? How has it been performing over the last few years?

You could be liable for an equivalent amount to your wife's share if you cash it in & buy a car.

Does your wife know about the policy? Have you declared it? Have you had to supply evidence of bank statements as part of your financial disclosure - if so, the direct debit payments will probably be on there and you could be in a spot of bother if you have NOT declared it.

Stanleymds

loftus wrote: »

If you liquidate the policy and "invest" it in another asset that you retain it is likely that your wife will receive a larger share of other assets to compensate.

Ah, yes, i see... So i might as well use the money as a "lever" in the mediation negotiations.

Stanleymds

floss2 wrote: »

How long have you had the policy? How has it been performing over the last few years?

You could be liable for an equivalent amount to your wife's share if you cash it in & buy a car.

Does your wife know about the policy? Have you declared it? Have you had to supply evidence of bank statements as part of your financial disclosure - if so, the direct debit payments will probably be on there and you could be in a spot of bother if you have NOT declared it.

We plan to go the mediator route. Im not sure how much they study your previous bank statements, but yes, the DD payments are ther for all to see.