Separating after 26 years.

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  • Tom99
    Tom99 Posts: 5,371 Forumite
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    eskbanker wrote: »
    Quite possibly, but it's not exactly unheard of for a pension fund at retirement age to be significantly more valuable than the family home (I know mine is, even without having reached retirement age), so my point was more about the principle that financial separation should involve divvying up not just assets but liabilities too....

    [FONT=Verdana, sans-serif]An indexed linked pension at age 60 is probably worth a very minimum of 30x the annual pension so its worth making sure the house/pension split is in the OP's favour by at least half this loan figure.[/FONT]
  • twiglet98
    twiglet98 Posts: 883 Forumite
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    As the credit card debt is due to university fees, who is the student? Are you both his/her parents?
  • fbrander
    fbrander Posts: 65 Forumite
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    chelseablue wrote: »
    Could you use some of the lump sum to pay it off?

    Although I presume you don't get the lump sum until you're 55?

    At 55 I would only get 80% of my pension. Need to wait until I’m 60
    :)
  • fbrander
    fbrander Posts: 65 Forumite
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    Tom99 wrote: »
    [FONT=Verdana, sans-serif]An indexed linked pension at age 60 is probably worth a very minimum of 30x the annual pension so its worth making sure the house/pension split is in the OP's favour by at least half this loan figure.[/FONT]

    I’m sorry but I don’t understand. There is no way my pension will ever be worth 50% of the house value. Also my husband is already retired and some of his lump sum went towards buying the house. He has a decent monthly pension though.
    :)
  • fbrander
    fbrander Posts: 65 Forumite
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    twiglet98 wrote: »
    As the credit card debt is due to university fees, who is the student? Are you both his/her parents?

    Not entirely due to fees. End of the month shortfalls too. Our son was the student.
    :)
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    fbrander wrote: »
    I’m sorry but I don’t understand. There is no way my pension will ever be worth 50% of the house value. Also my husband is already retired and some of his lump sum went towards buying the house. He has a decent monthly pension though.

    [FONT=Verdana, sans-serif]If you both have a pension then you should each have asked for a capital value of those pensions provided by your pension co's. Only by comparing those two figure and seeing how much more your husbands is worth will you know whether you keeping all the house is a fair deal.

    [/FONT] [FONT=Verdana, sans-serif]When you come to get your financial consent order, it is just possible the judge might ask about the capital value of each persons pension so that they can see the split is a fair one, particularly if there seems a big difference between the two pensions.[/FONT]
  • fbrander
    fbrander Posts: 65 Forumite
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    Many thanks for your replies. A couple of very helpful suggestions which I will follow up. We are not going down the road of financial consent orders though as we are trying to keep the split informal.
    I know you will probably think I am mad but splitting things 50/50 would involve selling our house which we dont want to do.
    Also my intention in the future is to sell it and use some of the equity to add to my pension.
    :)
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    [FONT=Verdana, sans-serif]For both your sakes you should get a financial consent order, there is nothing unfriendly about that and you can make the application yourselves.[/FONT]
    [FONT=Verdana, sans-serif]If you don't have a financial consent order then either of you can apply for one in the future, say you fall on hard times or win the lottery.[/FONT]
  • MeenaM
    MeenaM Posts: 320 Forumite
    Debt-free and Proud!
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    I would also add you should do wills or update your existing ones
    paid off £27,527.47 debt free journey began Nov 2017 DEBT FREE 13.09.2019!! EF £3500/£5000
  • happyandcontented
    happyandcontented Posts: 2,768 Forumite
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    I understand you want to keep things amicable but you should still be able to do that and protect yourselves financially. The debt includes payments to your joint child so it seems unfair that your husband does not shoulder some of that.

    Teaching until you are in your middle 60's from choice is one thing, having to do so is quite another.
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