divorce and inheritance

KarenatOakside

I was left an inheritance by a family member 3 years ago and subsequently paid off our joint mortgage, bought my husband a new car and a family narrowboat.  Husband retired early at 61, based on this money and then left me and our 12 year old son 6 months ago, after a marriage of 33 years duration.  I am 10 years younger than him and have not worked because I have raised his 3 children  I left the majority of the inheritance in an investment account, which on my financial advisor's advice I transferred into joint names.  I have offered him a financial settlement of £585 K which includes 50/50 of our house + money from my inheritance, but in joint accessable accounts plus renouncing my share of his 3 pension pots and any claim to child maintainence).  He wants more.  How realistic is it that the investments will be treated as being included in the matrimonial pot or ring fenced?

Savvy_Sue

Honestly, I don't know. You need a good divorce solicitor to advise you. 

One query: 

KarenatOakside said:

I was left an inheritance by a family member 3 years ago and subsequently paid off our joint mortgage, bought my husband a new car and a family narrowboat.  Husband retired early at 61, based on this money and then left me and our 12 year old son 6 months ago, after a marriage of 33 years duration.  I am 10 years younger than him and have not worked because I have raised his 3 children  I left the majority of the inheritance in an investment account, which on my financial advisor's advice I transferred into joint names.  I have offered him a financial settlement of £585 K which includes 50/50 of our house + money from my inheritance, but in joint accessable accounts plus renouncing my share of his 3 pension pots and any claim to child maintainence).  He wants more.  How realistic is it that the investments will be treated as being included in the matrimonial pot or ring fenced?

Am I reading that as you want to maintain some joint accounts after divorce? No. Just no. Don't do it. You can't have a clean break because you have a son together, but you do NOT want financial ties with a man who has shown himself as at best unreliable. 

BAFE

Everything will be put in the pot.  Nothing will be ring-fenced.  He is likely to receive 50% of the assets.

KarenatOakside

Why do you think nothing will be ring-fenced if his needs can be met from current accounts and sale of joint property?  This inheritance was left to me and (largely) has been kept separate from family finances.  I am happy to leave the mortgage pay off etc to be split, but obviously would like to retain the remainder of my inheritance

AskAsk

it is interesting in these instances as to how the money is divided as you could argue the husband did nothing during the marriage to earn that inheritance.  however, the husband did go out to work and the OP stayed at home to look after the children, so the OP's husband has looked after the family.

but i would guess that the money would be considered to be earned during the marriage.

Mojisola

KarenatOakside said:

I have offered him a financial settlement of £585 K which includes 50/50 of our house + money from my inheritance, but in joint accessable accounts plus renouncing my share of his 3 pension pots and any claim to child maintainence).  He wants more. 

As others have said, having money in joint accounts after you've separated is a bad idea.

Does your offer to him include half of the savings or less than that?

It would make sense to start with everything on the table, including his pensions, and work from a 50/50 split.

If you are going to be the main carer for the children, you should be aiming for a better split in your favour, plus child maintenance.

MovingForwards

Ask on wikivorce as that's a specialist forum for divorcing / separating couples.

tacpot12

I would strongly suggest you move the money to an account that only you have access to, and to do so urgently. If he has access, he can withdraw the money and spend it, and once it is gone, no court is going to be able to give you it back. I would move it to a new investment firm that has no records of dealing with your husband. If your current investment firm wants a fee to move the money by CHAPS, pay this fee - it's usually only £20 or so, but you want the money moved asap. I would not speak to your Financial Adviser about this as he may feel he has a conflict of interest. Find a new local IFA that will see you on Tuesday, explain that the money needs to be moved today and ask them how to minimise any tax liabilities of moving the money (CGT may be an issue). 

Once the money has been moved and is under your sole control, you can tell your Financial Adviser and discuss whether you want them to act for you after you are divorced. I would not use them until you are divorced and you are certain that you can trust them to act only in your interests. 

Follow Mojisola's advice on how to agree to split the money. If you can agree between yourselves, it will be cheaper than using solicitors. Consider using mediation, but walk-away from the mediation if you don't agree the proposed settlement is fair. 

Vikipollard

Agree with the above, including making it very clear that his pension pots and child maintenance will also factor in the settlement arrangements.

Keep_pedalling

You seriously need to take professional advice. Waiving you’re rights to a portion of his pension seems unwise as you have none of your own. Yes your inheritance has to be included in your joint matrimonial assets, but so does his pensions, which are likely to have significant value.

Rach3kids

Long time reader, new ID as old one could be recognised.
I am reading this after the worst 18 months - Husband left after long 20+ year marriage, 3 kids, equal share in our business.
I tried to keep things simple, but that went quickly south, when his new "friend" got involved, especially after I filed for divorce.
They arguing every single point, solicitors bills racked up horrendously, just because he did not believe business / house value etc, did not want to discuss business sale to either partner, or 3rd party, he was not bothered about pensions, suddenly he was, - stupidly we had shared all the savings 50/50 - he went on a spending spree with his share (fair enough), BUT I then discovered if you go to FDR that, that is the point the monies are split, meaning I could have lost more savings, just because I was being careful with my money.

The moral is (as much as I don't like throwing money away) - go to see a solicitor NOW. - Get the Financial Consent order agreed (should only cost £500 if you both agree) - this is then binding, and protects both parties, and your child. - It takes into account needs of both parties, and your child (but not child maintenance that is separate). - it sets aside what happens to the house / pension / inheritance (as nothing is ring-fenced)
The longer you leave things, the more things can get twisted, - my husband filed for FDR (Financial Dispute resolution), without even trying to get the Consent order agreed, refused mediation or any discussion with parties regarding assets, meaning we had to have 2 court hearings, costing me over £6k extra in fees (he was a lot more as he took a barrister each time), we narrowly avoided going to a full trial (another 10K), after a very long day in court, and hearing the Judges comments.  (ended up with the same agreement we had made together at the start before he decided to go back on it, just took 12 months and lots of bills ) 
All I ever wanted was a clean, simple separation, I was trying to deal with the fallout, and protect the kids, I am working age, and happy to keep working, - he did not want to work, (so no future income, no mortgage capacity etc, trying to force sale of house)
His pension asset can be offset against your inheritance... everything goes into the pot - do not underestimate how much a pension is worth (as I have discovered to my cost, and had to sign one of mine over completely to him),
The only winners were the solicitors (my fees over 11K, when I had thought it would only be £1500 initially) ... so get it sorted quickly, before things get bitter,