Kent Solicitors

In trying to negotiate a financial settlement, difficulties arise when one party refuses to inform the other what they are looking for or what their intentions are.

A party who is not open and honest in this respect will not state what they intend to do but will pretend first to want to do ABC - to see what reaction they get - and then to pretend to want to do XYZ - to see what reaction they get and then to decide which gives them the better position

Problems can especially arise when there is one significant income producing asset over the capital of which the parties are fighting (Killing the goose that lays the golden egg) e.g. a share portfolio, the dividends from which have been the major income stream for the divorcing couple

Here one party might say 'we cannot sell the former matrimonial home because of the market, but I need half the share portfolio so I can sell it to put down a deposit on a new property'.

That request might be received sympathetically, but then if that same party then says 'do not sell the shares to raise money, but give me half the share portfolio in a spread of investments as I do not want all my eggs in one basket' might provoke an adverse response, if the dividend income is the only thing keeping the former matrimonial home paid for

Further difficulties can be caused if, because of the tax position, it is sensible to offset one asset against the other e.g. better not to crystallise a capital gains tax liability by selling / transferring shares, but rather leave the shares where they are but then adjust the division of the sale proceeds of the former matrimonial home

That exercise can become fiendishly complicated if the values of both shares and house are volatile (as seen in the share and housing markets in the second half of 2008)

For a meeting to hear a clear analysis of the options available to you in your particular financial circumstances, phone Michelle Brennan 07795 821 793

Labels: divorce separation financial settlements