Wikivorce is a well respected, award winning social enterprise
Volunteer run - Government sponsored - Charity funded
Our organisation helps 50,000 people a year through divorce
|- - - - - - -|
|What is a fair settlement?|
|- - - - - - -|
|Step By Step Process|
|1) Financial Disclosure|
|2) Get Legal Advice|
|4) Apply to Court|
|- - - - - - -|
|1) Separation Agreements|
|2) Consent Orders|
|- Simple Example|
|- Typical Example|
|- - - - - - -|
|Pensions on Divorce|
|Consent Order - Typical Example|
This example is based on a ficticious couple: Bill and Brenda.
Bill and Brenda were married for 20 years when the decided to divorce, Bill is 50 and Brenda 45 they have one child a boy aged 15, they are both still friends and have agreed the boy will spend time living with both parents as and when Harry their son decides.
They both agreed to each talk with a solicitor for an hour or two and then they would both talk with a mediator to look at possible solutions. Bill Brenda and Harry are all in good health.
Bill earns £3,200 net working in IT, he has a final salary pension which after being valued by an actuary (an expert in valuing pensions) its stated value is £200,000. Brenda earns £800 net working part time as a florist, she has no pension.
The former matrimonial is valued at £200,000 with an outstanding mortgage of £60,000 which will end in 10 years time, the monthly payment is £400. Brenda and Harry live in the former matrimonial home, Bill rents a house with a friend, his share of the rent is £300 per month. They have no debt, they both have a car but they are of low value.
The mediator suggested they focus on the main issues, Child maintenance. Bill and Brenda decided to make a private arrangement after reading the guidance on the child maintenance options web site, this works well and allows their son to spend what time he likes with mum and dad.
Division of assets.
The only assets of value are the equity in the family home of £160,000 and Bill`s pension valued at £200,000, the mediator explained pensions don`t have the same value as assets that can be sold in real terms. Bill and Brenda decided Brenda will keep the marital home and have 25% of Bill`s pension, this is mainly due to the fact that Bill earns so much more than Brenda and will earn even more in the next few years, they will both keep their own cars and other assets they have in their own homes, they will also be responsible for their own small debts.
Brenda needs some help to pay the mortgage until it ends in 10 years time, this is even after a full benefits check, they both agree a sum of £400 per month until the mortgage is paid.
The Consent Order
This is how their consent order could read.
What is the overall effect of the order?
In short the husband is to transfer the marital home to the wife along with 25% of his pension and pay £400 per month for ten years, they both keep their own household items and cars and the husband keeps 75% of his pension.
The first part of the order is known as the recital or preamble, it sets out the basis for the order that comes later with the numbered paragraphs.
All of the order can be enforced by should it become necessary, both the recital and the order part.
What does each part mean?
1. The husband must sign over the house to his wife within 28 days, this is quite easy all he needs is a solicitor to complete a form called TR1 and sign it then its sent to land registry.
2. The husband must pay his wife £400 for ten years, this is called a term order for spousal maintenance, he can stop paying if his wife dies lives with another man for six months, she marries again, or when Brenda is 55, the only other reason he can stop paying is if a judge says he can, this is known as a variation or discharge of the order.
3. Bill must sign a form called a pension annex that is then sent to the pension provider known as the trustee, the trustee then gives Brenda 25% of Bill`s pension, in Bill`s case the pension provider allow an internal transfer meaning Brenda`s new pension stays in the same scheme, if they did not allow this Brenda would have to talk with an independent financial adviser to find another scheme to place her pension. Pension providers do charge to share a pension so you must always check first to see what the best option is.
4. Providing Bill and Brenda stick to the agreement they have made all of Brenda`s future claims are gone, she cannot apply to court to ask for another share of Bill`s assets or pension.
5. Under no circumstances can Bill apply to court to ask for anything Brenda has, all his claims are gone.
6. The only way Brenda can make a claim on Bill`s estate should he die is if he still owed her some money he was paying toward the mortgage, other than that she can make no claim if Bill dies.
7. Bill cannot for any reason make a claim against Brenda`s estate should she die.
8. All this means is that Bill or Brenda can go back to court if either Bill or Brenda don`t do as the order says they should, in this case that could mean Brenda ask court to enforce the payment of £400 should he stop paying it, or Bill could ask court to reduce the £400 per month if say he is ill and can`t work for a few months, Bill and Brenda are just made up but everyone who has a consent order has the right to go back to court should they need to.
9. No order for costs just means Bill and Brenda don`t owe each other any money for what they spend on the solicitors and the mediator.
For FREE advice or info on our services call Wikivorce today
|Call FREE from a landline: |
0800 44 88 66 44
|Mobile friendly local nbr: |
01202 80 50 20
|Open 9am - 8pm, Mon to Sat|
and 2pm - 8pm on Sundays |
Can't talk right now? Book a call back from our expert advisors
Wikivorce, the world's largest divorce support community, is operated by Web Communities Limited. UK Registered company nbr 06460257.
© Copyright Web Communities Ltd 2007 to 2017. All rights reserved. Wikivorce ® is a registered trademark.