Pending voluntary redundancy and divorce

m1tch

Hello.

I am currently separated from wife and left the matrimonial home 18 months ago. We have been issued our decree nisi and will hopefully be signing a consent over the coming weeks with a 60:40 split in my wife's favour. My wife and children are remaining in the family home.

My current employers are currently offering a voluntary redundancy scheme with a generous 1 year salary pay-off. My question is, if I were to apply and be accepted, would my wife be entitled to any of the cash payment (approx. 30K tax free)? The details of the scheme say I would need to carry on working until the end of 2013, with the payment being made by end of January 2014 which should be long after our divorce is finalised.

My concern is that I would need to agree (by signing a compromise agreement) to the redundancy before we sign the consent order and before the decree absolute is issued. If my wife is entitled to half (or even 60%) then it doesn't seem worth the risk of not finding new work. I would ideally want to put the money towards a small house for myself and my children as I still have overnight weekend visits.

sweaty_betty

I think it will depend on what your agreement states. If it's a clean break, then your wife will probably have no claim. But you need to get legal advice to see if your wife will have a future claim on this, or other things such as your pension etc.

NAR

OP you are currently still married and would be signing up for this package before your Financial Consent Order is signed. Therefore this money is a Marital Asset and your wife could be entitled to a split of the money. You need to consult your solicitor on this matter.

m1tch

NAR - That is my main concern. I thought marital assets were only those accumulated during the relationship, i.e., when we were living together and financially tied? All our finances have been totally split for over a year.

sweaty betty - The agreement would be on a clean break basis (including pensions etc) but it isn't signed yet! Once I disclose the redundancy offer I believe my wife will change her mind.

neneromanova

I think you could argue that the money was never a marital asset as it won't be received til next year. I would definitely see a solicitor about it though.

rpc

Can the company be flexible? You could perhaps speak to them and see if they can extend the deadline until after the order is signed? If they are keen for people to take up VR and you would be working until the end of the year, it might not make a lot of difference to them.

NAR

m1tch wrote: »

NAR - That is my main concern. I thought marital assets were only those accumulated during the relationship, i.e., when we were living together and financially tied? All our finances have been totally split for over a year.

But it could be argued, your employment, which gives the lump sum, was in place during your marriage. Which is why I suggest to talk to your solicitor regarding necessity to disclose.