Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.


Kerry54321

30 posts

Geek


#248043 8-Mar-2019 15:48
Send private message

Hi,

 

am separating from my wife of over 30yrs. I earn 85k (+car), she earns about 40k. Assets aside, what would be a reasonable recognition of this imbalance in incomes in terms of a lump sum payment in the settlement?


Filter this topic showing only the reply marked as answer View this topic in a long page with up to 500 replies per page Create new topic
 1 | 2 | 3
Geektastic
16816 posts

Uber Geek

Trusted
Lifetime subscriber

  #2193670 8-Mar-2019 15:52
Send private message

Sorry to hear that.

 

 

 

Have you considered asking a divorce lawyer?

 

 

 

I for one would not even know why that is relevant, much less how to begin assessing it.






Affiliate link
 
 
 

Affiliate link: Trend Micro provides enhanced protection against viruses, malware, ransomware and spyware and more for your connected devices.
floydbloke
2856 posts

Uber Geek

ID Verified

  #2193672 8-Mar-2019 15:55
Send private message

Opening a rather large can of worms.  I suggest speaking to a lawyer.





I've joined a carpenters course.  Haven't made anything yet....we've only just begun.

 

 


Kerry54321

30 posts

Geek


  #2193674 8-Mar-2019 15:56
Send private message

Yes, however they will not answer without being 'engaged' (ie start charging fees) and we are trying to settle amicably. Hoped to find someone with similar experience here..




Beccara
1445 posts

Uber Geek

ID Verified

  #2193675 8-Mar-2019 15:57
Send private message

From my experience with this salary difference doesn't matter, Relationship property is split 50/50 and that's about that. Whats the argument for this lump sum payment?





Most problems are the result of previous solutions...

All comment's I make are my own personal opinion and do not in any way, shape or form reflect the views of current or former employers unless specifically stated 

dafman
3746 posts

Uber Geek
Inactive user


  #2193676 8-Mar-2019 15:58
Send private message

Sorry to hear. I'm no lawyer, and I could be wrong, but my understanding is that the law only covers equal distribution of assets as at separation - there is no requirement for lump sums for income imbalances.


Linux
9112 posts

Uber Geek

Trusted
Lifetime subscriber

  #2193678 8-Mar-2019 16:01
Send private message

50/50 split on assets and debt

wellygary
6725 posts

Uber Geek


  #2193679 8-Mar-2019 16:09
Send private message

dafman:

 

Sorry to hear. I'm no lawyer, and I could be wrong, but my understanding is that the law only covers equal distribution of assets as at separation - there is no requirement for lump sums relating income imbalances.

 

 

Bzzt: it doesn't always have to be 50/50 ( and yes its a NZ based response)

 

https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=12091865

 

However, the court can rule that one spouse should receive more than a 50 per cent share at the end of a relationship, if all the following circumstances exist:

 

• the income of one partner is likely to be significantly higher than the other

 

• the living standards of one partner are likely to be significantly higher than the other

 

 

• these factors are due to the division of functions in the relationship

 

 

• it is just to make a compensatory award, given the circumstances of the case.

 

Its gonna come down to what assets there are,

 

and whether one or other parties will feel aggrieved with a 50/50 split.

 

if this is the case then the OP will need legal advice,  

 

 




surfisup1000
5097 posts

Uber Geek


  #2193680 8-Mar-2019 16:13
Send private message

Beccara:

 

From my experience with this salary difference doesn't matter, Relationship property is split 50/50 and that's about that. Whats the argument for this lump sum payment?

 

 

A friend had to pay out his wife for the difference in careers while she looked after the kids. 


tdgeek
26521 posts

Uber Geek

Trusted
Lifetime subscriber

  #2193687 8-Mar-2019 16:18
Send private message

Yes, 99% sure it makes no difference. The 50/50 asset/debt split caters for the salary imbalance. After that you are both single and independent


tdgeek
26521 posts

Uber Geek

Trusted
Lifetime subscriber

  #2193699 8-Mar-2019 16:21
Send private message

surfisup1000:

 

Beccara:

 

From my experience with this salary difference doesn't matter, Relationship property is split 50/50 and that's about that. Whats the argument for this lump sum payment?

 

 

A friend had to pay out his wife for the difference in careers while she looked after the kids. 

 

 

Thats Child Support not divorce settlement? There is a formula if one has custody or shared custody. IIRC, income less an allowance (IIRC 15k)n and 18% for first child. Unless they did an agreement and they decided to accept for salary difference?


Beccara
1445 posts

Uber Geek

ID Verified

  #2193700 8-Mar-2019 16:22
Send private message

surfisup1000:

 

Beccara:

 

From my experience with this salary difference doesn't matter, Relationship property is split 50/50 and that's about that. Whats the argument for this lump sum payment?

 

 

A friend had to pay out his wife for the difference in careers while she looked after the kids. 

 

 

 

 

Might indicate that there wasn't enough asset to split to cover the incoming loss from one spouse. There are a few fringe cases but from my lawyer going through this has said cash settlements and shifts away from 50/50 are rare and have a somewhat niche set of circumstances.

 

 

 

Unless someone in this case is pushing for a cash settlement the best way to avoid lawyers and a court case would be to 50/50 split assets and debt's and call it quits 





Most problems are the result of previous solutions...

All comment's I make are my own personal opinion and do not in any way, shape or form reflect the views of current or former employers unless specifically stated 

smcc
189 posts

Master Geek


  #2193763 8-Mar-2019 16:59
Send private message

Doesn't matter how amicable you want to be, you should still consult a Lawyer. Most will have a short initial discussion before they bill you.

 

Even amicable splits can go off the rails. If your former partner decides they do not like the potential outcome you can be sure they will get advice, this may leave you more exposed than you would like.


Handle9
7819 posts

Uber Geek

Trusted
Lifetime subscriber

  #2193810 8-Mar-2019 17:16
Send private message

Kerry54321:

Yes, however they will not answer without being 'engaged' (ie start charging fees) and we are trying to settle amicably. Hoped to find someone with similar experience here..



You will need a lawyer at some point in this process to draft agreements and make sure they are correctly executed.

If you are talking about an extra $500 of costs to get proper advice at the start then imo it is well worth the investment. It has the potential to cost you far more than that at the other end.

solutionz
589 posts

Ultimate Geek
Inactive user


  #2193893 8-Mar-2019 18:16
Send private message

Kerry54321:

 

Hi,

 

am separating from my wife of over 30yrs. I earn 85k (+car), she earns about 40k. Assets aside, what would be a reasonable recognition of this imbalance in incomes in terms of a lump sum payment in the settlement?

 

 

It's a difficult situation and I applaud you wanting to address this "reasonably".

 

As far as what is generally fair and reasonable; we have to assume that over the span of 30 years you have both contributed EQUALLY to the relationship - not necessarily equally financially but equal effort with her supporting your income potential

 

Obviously when you split you cannot split this intangible value that you will continue to benefit from so some proxy compensation is necessary.

 

Consider that the compensation is to address the inequity in potential (earning) opportunities going forward thus the manner of compensation may be contribution towards study/training so she can have the opportunity to increase her earning potential.

 

What's a reasonable figure?

 

Assuming no children the starting point could be half of the current difference in income (~$20k?) or between that and the going child support rates for you case assuming 1x hypothetical child ($10-$15k).

 

What's a reasonable duration?

 

The length of a degree - 3 years? So you could be looking at $30-$60k spread over 3 years.

 

What "discounts" to factor?

 

You could look at a ratio of the difference in income & assets before the relationship however after 30 years this starts to become irrelevant.

 

You can look at the "actual" cost & time necessary to bring her up to an equal footing.

 

A lump sum payment should incur an interest + opportunity cost / use of money discount.

 

 

 

I don't think a lawyer needs to be your first step if you can work this out reasonably between yourself - however any agreement definitely needs to be in writing to avoid possible issues.

 

https://www.findlaw.co.nz/articles/4419/spousal-maintenance-.aspx

 

 

 

As a yard stick if this was me I might be offering something like $40k cash/assets up front or $60k over 3 years. 30 years is a long time and I'd want to see the best outcome for the sake of both parties.


kobiak
1585 posts

Uber Geek

Trusted

  #2193904 8-Mar-2019 18:34
Send private message

If you are willing to settle in agreement. Without court involved, you put everything that you guys agreed on to lawyer who will prepare separation agreement, which will be presented to another party's lawyer. If all parties agree, sign everything and pay fees.

 

 - lawyer fees would depend on complexity of agreement but 2-3k should be a good starting point. + if one party gets the property - change of ownership, title, etc - some fees there
 - if you have mortgage too, talk to bank, they will need to make a new approval and do the paperwork

 

Did it last October and because we agreed on everything, just sign the papers and be gone.





helping others at evgenyk.nz


 1 | 2 | 3
Filter this topic showing only the reply marked as answer View this topic in a long page with up to 500 replies per page Create new topic





News and reviews »

GoTo Launches IT Helpdesk Functionality Within GoTo Connect
Posted 18-Aug-2022 16:55


HP on Track With Recycling Program
Posted 18-Aug-2022 16:51


Belkin Screenforce Tempered Glass Screen Protector and Bumper - Apple Watch
Posted 15-Aug-2022 17:20


Samsung Introducing Galaxy Z Flip4 and Galaxy Z Fold4
Posted 11-Aug-2022 01:00


Samsung Unveils Health Innovations with Galaxy Watch5 and Galaxy Watch5 Pro
Posted 11-Aug-2022 01:00


Google Bringing First Cloud Region to Aotearoa New Zealand
Posted 10-Aug-2022 08:51


ANZ To Move to FIS Modern Banking Platform
Posted 10-Aug-2022 08:28


GoPro Hero10 Black Review
Posted 8-Aug-2022 17:41


Amazon to Acquire iRobot
Posted 6-Aug-2022 11:41


Samsung x LIFE Picture Collection Brings Iconic Moments in History to The Frame
Posted 4-Aug-2022 17:04


Norton Consumer Cyber Safety Pulse Report: Phishing for New Bait on Social Media
Posted 4-Aug-2022 16:50


Microsoft Announces New Solutions for Threat Intelligence and Attack Surface Management
Posted 3-Aug-2022 21:54


Seagate Addresses Hyperscale Workloads with Enterprise-Class Nytro SSDs
Posted 3-Aug-2022 21:50


Visa Launching Eco-friendly Payment Solutions in New Zealand
Posted 3-Aug-2022 21:48


NCR Delivers Services to Run Bank of New Zealand ATM Network
Posted 30-Jul-2022 11:06









Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.







Backblaze unlimited backup