Need advice about divorce settlement

Gigglepig

stmatt wrote: »

I think its the other properties which are causing confusion now. We know in this current market there is no equity in them. However in 20 years time, this will hopefully change, at which point he has immediately gained a lot more than she does. This was always his 'pension' so it seems a little bit wrong that he can claim that his pension is worth nothing but then gets to claim half of her pension.

They have decided to split, and the assets are only worth what they are worth right now. It was her decision to invest in a pension fund rather than in additional properties. The value of her pension fund is also likely to have dropped significantly during the recession?

If the additional properties are sold to give her 1/2, she can also invest in property if she likes.

If he has several properties, can the keep some each?

stmatt

I think he re-mortgaged the rental properties to buy more - she can't afford to take on another mortgage. I know he had 3 or 4 of them paid off but had to 'dispose of the equity'. I'll get her to check though - is there an easy way to find out.

Fang_3

Everything should get thrown into the pot and then divided - that's how it works. Usually it's the other way around so perhaps that's why your friend is feeling aggrieved? She benefited from his less than honest business practices, but now expects to not suffer the consequences - is that right?

Re: the houses - they're splitting up now, so their future potential value is nothing to do with it, just like her pension's future value is nothing to do with it - if it was he may be entitled to a lot more.

stmatt

.... ....

POPPYOSCAR

stmatt wrote: »

Hi,

We all know about the undeclared income. They used to have a safe in their house where he used to store his money and he used to boast about how he earned more money than my DH and judging by the money he used to put in his safe, he was not lying. Unfortunately his name is still on the main house deeds, otherwise the tax office would be hearing about it now. He also bought his parents house a couple of years ago using cash and at the start of the break up transferred it back to them.

All of the rental properties were bought about 5-10 years ago. He says they are empty so no income from them and estate agents have valued them with zero equity. They're all in his name only (but have been bought during the course of the marriage).

Didn't think you could just do this without some kind of tax liability for his parents?

Fang_3

stmatt wrote: »

Fang, I completely agree but rather than tell her 'i told you so' I thought I'd see if there was anything we hadn't thought of. Looks as though she's totally screwed though. TBH I think she's had bad advice throughout the whole divorce proceedings and as people do in this situation they've both fought hard against each other which has probably meant its cost them a whole lot more. Just hoping its all over with soon and they can both get on with their lives.

With regards to the whole tax avoidance thing, do you think HMRC would be able to pursue things if he's had 2 lots of books. We know he earned at least twice the amount he declared. Have we left it too late to do anything now that he's closing the businesses? I'm not really sure if I would report him especially as he would think it was her, and has threatened to kill her if she reports him. Think its probably best to leave things as they are.

You could probably report him if you had the books in hand. But your friend would likely be punished too as she was complicit in it. Where would the children be then?

stmatt

Hmmm, yes. Her FIL works the same way as her ex. They do everything via cash so that there is no paper trail. I may have to find out his address and give the info to some law-abiding citizen. I don't think its a particularly high value property but it probably wasn't declared to the benefits office (whatever we call them these days) let alone HMRC.

Fang_3

stmatt wrote: »

Hmmm, yes. Her FIL works the same way as her ex. They do everything via cash so that there is no paper trail. I may have to find out his address and give the info to some law-abiding citizen. I don't think its a particularly high value property but it probably wasn't declared to the benefits office (whatever we call them these days) let alone HMRC.

That'll be nice for the children. Or do you no longer care about their feelings now (as you claimed this was the reason for not saying anything before) that your friend is nearly completely divorced?

clearingout

as I see it, she has two choices:
a) she takes him to court, goes through the ancillary relief process and gets an outcome that a judge imposes on them. It might not be 'fair' in these circumstances but sadly, you can't expect to live the high-life after divorce and you particularly can't expect it when it's all done in an under-hand way when married. She took a chance when she married this man. It failed. Stand back, take stock, move your life forward. She's clearly well rid. That, for many, would be more than enough. Whilst money is darned useful in life, it doesn't buy you your freedom, self-respect or happiness. We live in a welfare state, neither she nor her children will starve or lack a roof over their heads.

b) she takes a deep breath, confesses all to a solicitor, takes advice and probably goes with her information to the police and the HMRC and drops him in it, asking not to be prosecuted as she's owning up to it and blaming him. I would assume that she will need evidence, not just her say so (or we'd all be dropping our exs in it!), to get anywhere with this option. Or indeed, be able to give enough information that leads to them finding evidence. He will need to have evaded tax to the tune of thousands and thousands and thousands, I suspect, for this to be a viable option (or have I been watching too much CsI?!). And it is possible to report him anonymously.

The threat of killing her I would take with a pinch of salt, unless he's got known criminal connections and she'd rather not risk it. It's pretty extreme, although I admit it does happen.

Oh. Their ages. How old are they and how long was the marriage? And who has said she has to give him half her pension and half the value of the house? Is this just an assumption she's making or has she had legal advice on this? Pensions are not always shared, particularly if both parties are young-ish (I divorced at 39, solicitor took the view I had plenty of time to build up a pension).

stmatt

Never liked the FIL - he's a nasty piece of work. Did try and report him before for claiming benefits and working for cash but I didn't know his address so it came to nothing. He wants nothing to do with the children because they take after their mother. When they do get taken round there the kids just get told what an awful person their mother is, so No, I wouldn't feel guilty about dropping them in it.