Divorce Settlement - Advice Please

Thready

OK bossy and thanks

Given what I have learned here maybe 25k is too low, but surely 72.5k is also too high, and would certainly see me homeless.

His business will have a monetary value, but as with most self employed people the company has been very good at showing little or no profit, so I don't expect too much from there.

I don't know why he drew his pension early but strongly suspect it has some benefit to him in the settlement stakes. I don't know if he got a lump sum or where it is and I also know that for years he has had a savings account that he has kept very secret from me, I have no idea who it is with or how much is in it, but I do know that he will not voluntarily provide the information to his solicitor and think that for me to ask my solicitor to try to find it will become prohibitively expensive :-(

Thank you all for your input, I get the feeling that I will soon have to become even more of a money saver than I already am.

loftus

72.5k is definately too high. As always with these things the solution is somewhere in the middle.
You have to decide with your solicitor what is fair, but also try and work out how much it will cost to get that - no point spending 5k in legal fees to save 4k - and if you go to court to settle you looking upwards of 10k in legal bills. To give you an idea - I got nowhere near going to court but it cost me 2.5k and that was at 150 an hour.
If you are talking try and sit down and come to an arrangement. presumably he is paying for his legal advice too. better the money stays in both your pockets rather than disappearing into the accountof your respective sols.

Thready

I absolutely and totally agree Loftus. I have asked him to go to mediation time and time again.

Sadly he is absolutely convinced that he will get a full 50% of the equity with no deductions, I had hoped his solicitor would point that out to him and he may then see sense and negotiate, but he is either hearing what he wants to hear or isn't being truthful with his solicitor.

I have pointed out time and time again the court costs and how it is silly to enter into a battle that only the solicitors win, but he is so convince3d that he will win and have his costs awarded that he isn't moving an inch.

I'm now clinging to the hope that although not legally binding the judge may question why he agreed and signed to the agreement then did an about face, but am not holding my breath.

It just seems so unfair that he is going to potentially walk away with the lions share and I will be left impoverished, if for no other reason that I think I am going to be forced to settle on his figure simply because I can't risk incurring the court costs.

NAR

I thought that a solicitor had the right to check for hidden/undisclosed bank accounts in such a case as this. Maybe someone who works in a bank/building society can confirm/deny this. The only place in UK where the information cannot be got is Credit Union accounts AFAIK.

Thready

I feel sure they do Nar, however, if he has not declared savings I assume it will take some digging to find them, and that probably doesn't come cheap, and because I don't know for sure that it/they exist or how much money there is, it could well be more expensive to find out ??

I really do appreciate all of your help and suggestions.

I'm not however, brimming with confidence, but as I cannot afford the amount he wants, at this stage I don't have much option but to continue down the legal route in the hope that he agrees to negotiate.

NAR

Thready wrote:

I feel sure they do Nar, however, if he has not declared savings I assume it will take some digging to find them, and that probably doesn't come cheap, and because I don't know for sure that it/they exist or how much money there is, it could well be more expensive to find out ??

But if there are considerable funds salted away . . . Of course there will be expense in finding out, so it is your call.

I'm not however, brimming with confidence, but as I cannot afford the amount he wants, at this stage I don't have much option but to continue down the legal route in the hope that he agrees to negotiate.

I definitely would, as he is probably hoping that you just cave in. Unfortunately the only real winners in these cases are the solicitors. Good luck.

mikey-mike_2

You say his business bank “has a charge on the mortgage”, I presume you mean on the house not the mortgage.

If I’m right I’d be very concerned about this and get some legal advice on this as a matter of extreme urgency

Bossyboots

A couple of points to pick up. Mediation is almost compulsory now. You need to make sure that the offer to mediate is made in writing to him via his solicitor. The courts are not happy with parties who fail to at least attempt mediation.

Costs will only be awarded in matrimonial cases where one party has incurred costs as a direct result of the actions of the other party. This is due to be tightened up even more in the future but at the moment each party is expected to bear their own costs unless an exceptional circumstance is brought to the court's attention. Therefore, he is wrong about being awarded his costs and if he won't mediate then the opposite is more likely to happen.

Unless the court orders it, a solicitor does not have the right to receive information from any financial institution about a customer. This would be a breach of the Data Protection Act if the information was revealed. Part of the financial paperwork involves swearing a document called a Form E. On this form are all the financial details and you swear that the contents are a true record of your financial position. To swear it with false information is perjury. However, you must be sure of your ground before making an accusation that he is not declaring accounts. However, it would be worth your solicitor suggesting to his that another account exists. Where you might get lucky is the paper trail, or absence of one, in relation to his pension. I can't imagine he did not take a lump sum from his pension. I would hazard a guess that this will have been put into the hidden account. Information will be needed from the pension company by his solicitor and they have to pass that onto yours. It should be clear from that how much he took. Your solicitor will then need to look carefully through the Form E and accompanying copy bank statements to find the money. If it does not appear or has been withdrawn, your solicitor must ask for an explanation. He cannot simply claim he spent it. You are entitled to ask for an explanation of purchases, withdrawals which cause you concern.

You have a point about the judge considering why he signed the original agreement. That is a point that can work in your favour but as it does seem that it was an unfair settlement, it could backfire on you.

Thready

Solicitor is aware of the 2nd charge and doesn't seem unduly worried Mikey, but I will take note and ask about it specifically.

Good points there Bossy, a friend has just suggested that he has maybe got an account in his partners or the business name. Although if it is in his partners name he would only have done that since we separated, so I should think that would have to be explained.

I just wish I had frozen all payments to my pension and savings, or even closed my savings account when we split, but I have tried to be as open and honest with my solicitor as memory serves and I would feel uncomfortable knowing I had deliberately misled.

I just have to keep being honest, make my solicitor aware that I have suspicions and trust in the law I suppose.

My solicitor did laugh at his claims of finding living with me intolerable, and yet he voluntarily moved back in!!

My hopes now lie in my solicitor and the justice system. I suspect it may be a drawn out process, but if you are interested, I will post updated info as and when I get it.

I can't fully express my gratitude for all of your comments; I don't feel quite so alone and in the dark as I did.

Thank you xxxx

Alan50

Hi Thready,

I understand from the posts that you have a 36K mortgage...and also?..an additional loan (1st charge) to your ex's business? Do you know the value of the outstanding loan, or (I am self-employed) has the bank given him a large overdaft facility based on the charge?
He may not be in a position to clear the debt and hence the charge...
Good Luck
Alan