Re:Critical Illness paid out - is he entitled to half

Hi,
Apologies if I miss anything as this is my first post. I'm currently splitting with my partner of 9 years (never married, one 3 year old). He is moving into a flat and I am keeping the house. We have always split our money 50/50 even though I have earned more than him since we got tgoether.
In May 2010 I was diagnosed with malignant melanoma and received a critical illness lump sum. This was a joint policy but with separate names (if that makes sense!). I have kept hold of this money as I'm unlikely to get another life insurance policy in future and it will help me if the cancer was to come back, to enable me to look after my child. My partner has now said that, along with the half of equity I'm going to give him, he wants half of the money. I can't believe he is even suggesting it! Am I wrong in thinking he can't get any of this money or will there be instances where he is entitled to some of it? Thanks, Helen

The critical illness payout is meant to cover you and your illness therefore it follows that you should keep the payment.

Bearing in mind you are not married, on what basis does your partner believe he has an entitlement to half of the assets?

On the basis that you are to be the paretn with care of the child it is possible for you to seek an adjustment to the split in equity (if you feel this step is required) under Schedule 1 of the Children Act 1989. You may be able to use this as a bargaining tool.

I suggest you obtain legal advice to nip these issues in the bud - you don't want to agree to anything which is unfair.

Charles

Thanks Charles. I've made a solicitor's appointment for Monday. It may just have been said in the heat of the moment (I hope so!), but if not, I want to be prepared.

Hi Helen, the exactly same thing is happening to me, been divorced two years now doing settlement but previous I had heart attack which paid out critical illnes now I have to give three years statement to show where money had gone, how did you get on, would appreciate a reply as have to back to court in two weeks time.
Regards
Graham

Hi Graham,
Luckily we have managed to keep things amicable and have come to an agreement without it having to go to court.
I am giving him half the equity in the house plus another £10k.
It keep him happy and stops me worrying that he could take me to court.
We are not at the stage of signing the agreement yet but I'm hoping that will be the end of it.
The solicitor says he can always try and go back on the agreement but if he has signed something it makes things more difficult.
Sorry I can't help you more. Good luck and let me know how you get on if you get the chance.
Helen

Hi Helen, thanks for reply, I have already agreed to half the house and half my pension, now she wants to go back prior to divorce for my critical payment, you would think after 28 years there would be a sense of right and wrong, but it seems greed comes into it, good luck with your's aswell.
Graham

My wife has just left me and I found this subject interesting. I recieved 2 critical illness payments (1 sole & 1 joint)in late 2008, both paid to me, as I had been diagnosed with a malignant brain tumour. Luckily I haven't had to give up work yet, however in the near future I probably will need surgery, that is likely to leave me unable to work or pay a mortgage. I paid £70,000 off our £100,000 mortgage with the dual name policy and kept £30,000 from the sole policy in savings. Now my wife tells me her solicitor reckons the whole amount is joint money for us to share equally. This is a massive worry as I cannot get new insurance or mortgage and will need the money to pay for all sorts of things after surgery. We have plenty of equity in our property without this money and I always thought we would share that part of it and my illness payment would be mine for when i need it. Anyone got any advice?