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Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34272
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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My wife and I have separated and we have so far been quite

Resolved Question:

My wife and I have separated and we have so far been quite successful in negotiations regarding finances between us. However I need some advice on the split of assets as we enter into the divorce process.
We have agreed that only the following assets are to be included in negotiations (figures are approx):
On my side I intend to keep the house which has £91,000 equity. I have a business which is valued at £29,000 and meagre pension and savings of approx £8,000. Total asset value - £128,000.00
On my wife's side she has a pension with a Cash Transfer Value of £200,000.00.
My understanding from previous legal advice is that courts will grant a 50/50 split.
My logic then follows: Our total assets are £328,000. 50/50 is £164,000.00. If I keep £128k of assets and she keeps £200k then, by my calculations, there is a £36k shortfall owed to me. to bring my share up to the £164k.
Could you please advise if this is correct.
Also, should the fact I am taking on debt in the form of the outstanding mortgage (approx £75k) come into consideration as well? We have agreed to not bring any other debts into the equation.
Submitted: 2 years ago.
Category: Law
Expert:  Clare replied 2 years ago.
Hi
Thank you for your question.
My name is ***** ***** I will do my best to help you
I am afraid that the assessment that you have given is not correct.
Despite the word "cash" in the title the CETV of a pension is not the same as cash and cannot therefore be compared to the equity in the property.
If the cash assets are split equally then you will owe you ex £64,000.
Your share of her pension can be dealt with by way of a pension sharing Order OR by her giving you and extra share of the capital instead of a £100,000 pension share.
There is a general tendency to discount a CETV by two thirds to give a capital equivalent - so very roughly she woudl in fact only receive £30,000 to £35,000 of the cash assets and retain her pension.
This can of course only be the roughest of guides.
Please ask if you need further details
Clare
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