Section 25 (Matrimonial Causes Act 1973)

dowling71

Hi this relates to the question of the fair division of assets in a pending divorce. 

As per a reference to section 25 online, 

"Section 25 Factors include:

The financial history of the marriage

Pensions, inheritances and other foreseeable future gains

Contributions made by either party (including non-financial contributions such as bringing up children)." 

My rather indelicate question is should the future inheritance theoretically due to my wife from any future sale of the parents home be factored in to a settlement? (My m.in.law is in 80s and in good health I believe.)

On my side, my dad gave my wife and I £50k ten years ago to help get us on the property ladder. He doesn't have any more assets so there won't be any more inheritance for me down the line. 

I also got a £24k severance payment when I left my job 3 years ago, all of which has since gone into the house.

We have no dependants. My (still) wife was not working for 5 years due to illness, I worked full time throughout until 2019.

Thanks so much in advance, 

tightauldgit

No, a future inheritance shouldn't be considered as it's not a matrimonial asset. Even if she received the inheritance today it shouldn't be factored into the matrimonial pot (although it might be considered when looking at her needs)

In the case of the two lump sums that you contributed to the house they would appear to be matrimonial assets.

dowling71

Hi thanks for that, just to clarify when you say the two lump sums are Matrimonial assets, does that mean that there is no proportional consideration for one party having contributed them and not the other?

Thanks in advance, 

Pollycat

dowling71 said:

Hi this relates to the question of the fair division of assets in a pending divorce. 

As per a reference to section 25 online, 

"Section 25 Factors include:

The financial history of the marriage

Pensions, inheritances and other foreseeable future gains

Contributions made by either party (including non-financial contributions such as bringing up children)." 

My rather indelicate question is should the future inheritance theoretically due to my wife from any future sale of the parents home be factored in to a settlement? (My m.in.law is in 80s and in good health I believe.)

On my side, my dad gave my wife and I £50k ten years ago to help get us on the property ladder. He doesn't have any more assets so there won't be any more inheritance for me down the line. 

I also got a £24k severance payment when I left my job 3 years ago, all of which has since gone into the house.

We have no dependants. My (still) wife was not working for 5 years due to illness, I worked full time throughout until 2019.

Thanks so much in advance, 

I posted this a few weeks ago:

Pollycat said:

It's better to agree without court help if possible - as long as you do it right.
Wikivorce may provide some help.

When a friend of mine got divorced, she had a share of an ex council house that her ex's Mum had rented for years so bought very cheaply.
He asked about his ex's inheritance from her Mum. When his solicitor found out that the Mum was very much alive, she laughed at him

So, no any future inheritance from your to-be-ex MIL will not be factored in to the settlement.

dowling71

Hi pollycat thanks for that, 

This section 25 stuff seems really misleading to me... 

"The financial history of the marriage

Pensions, inheritances and other foreseeable future gains"

It definitely appears that my 60k pension (25 years away) is in the Matrimonial pot as well as my 50k early inheritance and 24k tribunal payout. (I assume these last two are considered as capital contributions.)

Again, this being an indelicate point, why is my pension which is 25 years away more 'foreseeable' and subject to inclusion than a 100k inheritance from an in-law?

Thanks for any and all replies, 

Caz3121

dowling71 said:

why is my pension which is 25 years away more 'foreseeable' and subject to inclusion than a 100k inheritance from an in-law?

your pension pot has a current value, there is no guarantee of any inheritance...MIL's assets may be partially or fully used up for care in future so there could be zero left, she could decide to leave everything to the cat home. (it is her's to do as she wishes)

Did you have anything legal set up regarding the £50k from father? (I gifted my daughter money for similar and legal document in place signed by both parties that confirms in case of breakup that gift goes to her before any division property equity)

Flugelhorn

I suppose the in-law could leave the inheritance to someone else eg a cat rescue charity or similar.

Flugelhorn

Caz3121 said:

your pension pot has a current value, there is no guarantee of any inheritance...MIL's assets may be partially or fully used up for care in future so there could be zero left, she could decide to leave everything to the cat home. (it is her's to do as she wishes)

Flugelhorn said:

I suppose the in-law could leave the inheritance to someone else eg a cat rescue charity or similar.

we must be cat fixated this morning 

Pollycat

dowling71 said:

Hi pollycat thanks for that, 

This section 25 stuff seems really misleading to me... 

"The financial history of the marriage

Pensions, inheritances and other foreseeable future gains"

It definitely appears that my 60k pension (25 years away) is in the Matrimonial pot as well as my 50k early inheritance and 24k tribunal payout. (I assume these last two are considered as capital contributions.)

Again, this being an indelicate point, why is my pension which is 25 years away more 'foreseeable' and subject to inclusion than a 100k inheritance from an in-law?

Thanks for any and all replies, 

I can see why you think it's unfair.
But there is no inheritance until someone dies.
The fact that your Dad gifted you and your wife money is irrelevant.

How would you go about calculating an amount to be included in the divorce settlement?
You MIL may live another 20 years.
She may decide to leave her money to the local cat shelter.
The money may end up being spent on care fees.

Your pension has a value now. 
It's that value that will be taken into account in the divorce settlement.

Pollycat

Flugelhorn said:

Caz3121 said:

your pension pot has a current value, there is no guarantee of any inheritance...MIL's assets may be partially or fully used up for care in future so there could be zero left, she could decide to leave everything to the cat home. (it is her's to do as she wishes)

Flugelhorn said:

I suppose the in-law could leave the inheritance to someone else eg a cat rescue charity or similar.

we must be cat fixated this morning 

We certainly are - see my post. 

dowling71

Caz3121 said:

dowling71 said:

why is my pension which is 25 years away more 'foreseeable' and subject to inclusion than a 100k inheritance from an in-law?

your pension pot has a current value, there is no guarantee of any inheritance...MIL's assets may be partially or fully used up for care in future so there could be zero left, she could decide to leave everything to the cat home. (it is her's to do as she wishes)

<<if she did that would be fine by me but it's more foreseeable that she would leave it to her 2 daughters>>

<<I'm wondering why section 25 mentions inheritance if it's seems to be so off limits>>

Did you have anything legal set up regarding the £50k from father? (I gifted my daughter money for similar and legal document in place signed by both parties that confirms in case of breakup that gift goes to her before any division property equity)

<<No... Not something I / we considered at the time. Naive in retrospect>>

I'm wondering why section 25 mentions inheritance at all if it's seems to be so off limits?