Point at which divorce settlement figures are calculated

Ant_7676

Hi,

I would like some advice/experience if someone can help please.

Separated from my wife last July. She had an affair and left the family home to move in with the other guy. I continue to maintain the family home (pay mortgage and all bills) for me and my children (18 and 16) with my wife having the children at their house for half the week.

Good news is that I recently got a significant promotion at work, much bigger salary and increased pension contribution.(I was the significant salary earner in our marriage.. roughly at a ratio of 5 to 1)

At some point in the next 12 month or so we'll go through a divorce. What I would like to understand is that when it comes to the point of divorce will my new salary be used to consider any spousal payment and when looking at my company pension will the value be reviewed at the point of separation (the point she moved out) or the point of divorce. I'm a higher earner tax payer and have continued with HMRC self-assessment to maintain child benefit which is paid to my wife. I do not give her any other payment and she has not asked for any. 

 

The reason is that in principal I can postpone the increased salary and increased pension contribution. Might seem underhand, but I hope you'll understand based on the circumstances of the separation, why I'm not keen to give more than I have too. Should i do this or is it simply not worth worrying about? and when is the review point for calculating of a settlement (value of house and my pension pot (she etc.), is it point of separation (when my wife moved out of the family home) or point of divorce?

Thanks,

Ant

Savvy_Sue

I'll just say that spousal maintenance is not necessarily a given: your wife doesn't have young children preventing her from holding down a full-time job, so there may be no expectation that you would need to 'maintain' her. 

BAFE

I doubt you'll have to pay spousal support.  Only very high earners have to pay that and very high earners don't get their financial advice from MoneySavingExpert.

I'd say the settlement is more likely to be 50/50.  Your one dependant child will likely be 18 by the time it gets to court, which will go in your favour.  Your latest 12 months figures are what will be used to calculate the settlement but there is nothing to stop you putting your argument forward as to why these shouldn't be used.  Depending what mood the judge is in on that day, they may or may not take it into account.

BAFE

I've just seen that you can postpone the increase if you want to.  In your case that is exactly what I would do.  I'm guessing you mean that they will backdate the increase?   Yes, definately finalise the divorce first and then take the increased package.

Ant_7676

BAFE said:

I've just seen that you can postpone the increase if you want to.  In your case that is exactly what I would do.  I'm guessing you mean that they will backdate the increase?

Yes exactly.

So to confirm, the judge will look at my salary/financial position from the proposed point of divorce, back 12 months? Although, I could contest that, as I achieved my promotion/increased package despite the disadvantage of my personal circumstances created by her actions for example?

Also, if for example we had debt and I'm now solely paying that back, which may well be paid off by point of divorce... Can that still be reviewed in context to any settlement, as long as I keep records?

Thanks you.

Ant_7676

Ant_7676 said:

BAFE said:

I've just seen that you can postpone the increase if you want to.  In your case that is exactly what I would do.  I'm guessing you mean that they will backdate the increase?

Yes exactly.

So to confirm, the judge will look at my salary/financial position from the proposed point of divorce, back 12 months? Although, I could contest that, as I achieved my promotion/increased package despite the disadvantage of my personal circumstances created by her actions for example?

Also, if for example we had debt and I'm now solely paying that back, which may well be paid off by point of divorce... Can that still be reviewed in context to any settlement, as long as I keep records?

Thanks you.

Ps. including taking in to consideration all the mortgage payment between point she moved out to point of divorce, which I'm now paying solely?

moneytorques

Interested in the advice on this as am in a similar situation except our children are 13&7 and live with myself.