Consent Order - Pension

Hi, Thanks for accepting me. I’m currently going through a divorce, and have a decree Nisi. I have not yet seen a solicitor but done some online research, and looking to complete a consent order with my ex wife. I have 2 questions that I have not been able to find answers to on line, that I would be grateful if someone could help or had similar experience. Firstly, we separated 5 years ago, and my pension has almost doubled in this time, would my ex be eligible to a share of my pension up until the time we separated, or to date (time of divorce)?.. Also, secondly, bit off subject, but I have a 50% share in parents property after death of 1 parents, though solicitor agreement mum lives there remainder of her life, so never really an asset until her death, would there be a possible claim on this? Many thanks in advance

Impossible to answer either question without knowing approximate figures for income, capital and pensions and background information such as ages, length of marriage etc.

Hi David, I’m 48 and wife 50, married for 22yrs, 5 1/2 of which separated, 2 kids age 17 +21. She remains in house with kids, house worth about £120 (£18k still on Mortgage that I currently pay in lieu of maintenance. I bought another house which I live in with about £120k ((£40k still on Mortgage). She earns minimum wage and only works part time, and has little savings and no pension. I currently earn £30k, only little savings as any spare money paid of my mortgage and have pension £90k was £50k at time of separation 5 1/2 yrs ago. My dad passed away 10yrs ago and my mum signed the house to me and my brother 1/2 each, with clause she lives there rest of her days (done by solicitor), so we won’t get anything until her death, here house is worth approx £280k.. Thanks

Since you both have a house in which to live I doubt that your mother's house will be relevant. I suspect the relevant value of the pension will be its value now or, to be more precise, perhaps at best what the £50K would be worth now if you had made no further contributions over the last five and a half years. It certainly will not simply be given a value of £50K. Over five and a half years that £50K is likely to have grown significantly without you making any further contributions.

Hi David,
Yes, was £50k at time of separation, I have made continuous contributions every month , and raised my contribution each year to current 12% contribution hence the now £90k. I didn’t realise until recently that she would be entitled to a percentage of my pension, my naivety!! Appreciate you taking the time to reply, very grateful thank you . Best Regards.

It is perfectly reasonable to argue that pensions which have accrued since separation should be excluded. The period since separation is quite long in the particular circumstances you describe. There is certainly no reason why you should cheerfully agree to include what you have built up since separation. Having said that, if the pension was worth £50K when you separated I doubt that £50K would still be worth £50K five and a half years later. It is likely to have increased in value just as most investments typically increase in value over time. You may be able to exclude contributions you have made in the last five and a half years but it is likely that your wife at the very least has a good argument for a share of the original £50K including any increase in value of that £50K over that time.

This post, incidentally, illustrates why when a marriage breaks down it is almost always better to settle the financial issues arising from that marriage at the time of the breakdown. Letting a long period of time elapse creates exactly the type of problem described here and that is a situation best avoided.

Hi David, I appreciate your time and knowledge. I realise now!! hindsight is a wonderful thing!!
Thanks V Much

Many, if not most, people think that the date of separation or perhaps the date of decree absolute is the cut off date for assessing finances. That could not be more wrong which is why this point bears continual repetition. One of the most extreme examples of this can be seen at this link

[terry.uk]

Hi Terry, I have another random question..
My wife has now been to a solicitor, but she wont tell me what settlement agreement she wants, until i fill out a Financial Disclosure Form, which her solicitor has given her for me, is this something that’s ok for me to complete, or should i hold off until I get professional advise?
I’m just trying to reach a mutual agreement with her so I can then just get drawn up by a solicitor to save costs.

Thanks in advance!
Mark

No, you should not complete it. Your wife's solicitor almost certainly wants you to complete a Form E. That is a form designed for use in court proceedings when one spouse makes a formal application to the court to get financial issues settled. If a court directs the completion of this form then that is one thing but it is something wholly different to complete it on a voluntary basis at the request of your wife's solicitor. Completing this form on a voluntary basis hardly ever results in agreement. Typically what happens is that the wife's solicitor (or the husband's solicitor if the request is in reverse) is never satisfied with the contents and then raises endless questions. This can go on for months which wastes time and energy. There is also no way of guaranteeing agreement when using such a form voluntarily. At least if a court directs the completion of the form there is a time table and ultimately a court will decide if no agreement can be reached. Form E is best confined to use in court proceedings.

Tell your wife's solicitor that you are willing to attend mediation but that if they want you to complete a Form E that should only be within the context of a formal court application and a determinate time table.

Hi Terry,
I’m really glad I asked the question!!. Thought it was something that needed to be completed for a court appearance.
Really appreciate the feedback from yourself on this forum, really is brilliant advice. Im sure these questions and your knowledgable replies help many others in a similar situation to myself. Appreciate your time.
Thanks and Best Regards
Mark

I should perhaps tell you that this request to complete a Form E on a voluntary basis is something almost all solicitors ask for. That does not mean it is a sensible thing to do. In my experience it hardly ever results in agreement. If, say, you attend mediation in order to try and reach agreement a mediator does not ask both spouses to complete a Form E. A mediator will probably ask what assets, income and pension each has and then ask them to provide documentary evidence in support. For most people this does not require completing a thirty page form.

The use of the Form E is best confined to its proper role in court proceedings where it is used because (a) it is more or less exhaustive and (b) getting everyone to complete the same form makes it easier for a judge to find information. If you complete a Form E on a voluntary basis and that voluntary exchange does not result in agreement (which it mainly does not) then if you ultimately have to issue a court application to get things resolved you have to complete a Form E again. Your spouse's solicitor will then compare and contrast the Form E signed in court proceedings with the Form E completed on a voluntary basis and probably raise endless questions about any differences (which there are sure to be just by lapse of time). It really isn't worth getting into this type of situation which just costs unnecessary time and money.

Many Thanks for confirmation, most helpful..
Regards Mark