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FINANCIAL ENTITLEMENT ON SEPARATION AND THEN DIVORCE • FINANCIAL ENTITLEMENT AFTER DEATH OF HUSBAND • FINANCIAL SUPPORT ON SEPARATION • SAVINGS WITHOUT MY HUSBAND'S KNOWLEDGE • •

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QUESTION 1    WHAT IS MY FINANCIAL ENTITLEMENT ON SEPARATION AND THEN DIVORCE?

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• My husband has used our home as security for his management buyout of his company. We have a joint mortgage on the house and joint bank and savings accounts. He had all the paperwork drawn up by a solicitor who is now a friend. If I leave him what am I financially entitled to? He is Managing Director of the company. I do not know the details of the business and the tie with the house and the bank accounts. He usually brings papers home for me to sign and says sign here, don't worry about reading it, you won't understand it.
  How do I find out what I am entitled to as a financial settlement if I decide to leave my husband? I am not happy at home and have not been for about 10 years now but have a very comfortable lifestyle. It would depend on the settlement to determine whether I leave or not.
  
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QUESTION 4    FINANCIAL ENTITLEMENT AFTER DEATH OF HUSBAND

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• I am a male work colleague of a Vietnamese lady who finds herself in desparate need of advice.
  
  She was married to a very old ex-pat English man some 40 years her senior. She saw the marriage as a desparate route out of extreme poverty. She was living in a refugee camp at the time.
  
  The marriage was by all accounts a violent and abusive one. Intermittently, they lived in England, but for most of the time, they resided in the East. After 8 years, she and her husband returned to England in order to seek medical help for her spouse who had developed cancer. After diagnosis, his condition was determined as terminal, whereupon he deserted her, withdrew all monies from their account, leaving her virtually penniless, living in a house owned by his sister-in-law (his wife's sister). He then left for the far east in a desparate search for treatment.
  
  His health finally gave out and he died in a hospital in Singapore, but not before contacting his two daughters, one living in Africa and the other in the US, who had severed all contact with him upon his marriage to his young bride. The children upon hearing of his condition went to the far-east and cleared out all remaining assetts from all accounts.
  
  The widow is unable to obtain any legal help due to her financial circumstances and is even being threatened with eviction as the husband maintains he still has an interest in the property belonging to the widow's sister, despite the fact that the deeds clearly show her as the freeholder.
  
  I would appreciate any help from individuals, solicitors, people who have been faced with similar circumstances who may be able to advise as to possible courses of action.
  
  Name Worried Male Colleague Date 25th May, 2002
  
  ANSWER
  
  You will need the help of a solicitor to sort out these problems. Many offer the first hour free and are able to give an indication of the likely cost and possible outcome. Initially she could contact the Citizens Advice Bureau for immediate help. You do not give an indication of the area in which she lives.
  
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QUESTION 2   FINANCIAL SUPPORT ON SEPARATION

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• If I decide to separate from my husband I understand that our joint accounts will be frozen. My husband would have his income which he would be able use but I do not have a significant income and would be unable to support myself initially. Once the separation and eventually divorce was finalised what would I be entitled to?
  We have a joint mortgage on the family home
  We have joint bank and savings accounts
  My husband has his own business secured by the family home.
  What monies would I be able to obtain immediately on separation.
  
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QUESTION 3   SAVINGS WITHOUT MY HUSBAND'S KNOWLEDGE

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• How am I able to save in my own name without the knowledge of my husband. My husband has his own business and the accountant is a friend of his and my income is notified to the accountant.
  
  ANSWER
  
  Husbands and wives are treated separately for taxation purposes, each separately completing an income tax return when required to do so.
  
  There is therefore no reason for the wife to provide details of her income to her husband's accountant unless he is acting as her taxation agent.
  
  It is common for wives to receive a salary for their contribution to the husband's business but this salary is normally paid under deduction of income tax and national insurance.
  
  If the wife is required to complete an income tax return, this can be completed personally and the Inland Revenue provide a support service for assisting individuals to complete their tax return or alternatively the wife can seek independent advice.
  
  Where a wife is a basic rate taxpayer, interest on deposits will be paid under deduction of the appropriate rate of tax and there will be no liability to higher rate tax.
  
  Where the wife is a basic or higher rate tax payer, it may be more appropriate for the investment to be a tax-free investment such as ISAs.
  
  One practical point to consider is that communications from the bank or building society with whom the investment is made will be sent to the matrimonial home therefore it will be necessary to identify an alternative address for communications to be sent in order to avoid notifying the husband of the income source.
  
  This answer was supplied by Butt Cozens, Chartered Accountants 23rd October2001.
  
  This is the type of response you may receive from an accountant and there may be a fee for this information.
  
  ANSWER
  You can buy ISAs in your own name, You do not pay tax on the interest so you do not need to declare them.
  
  Please check under the Finance Advice Section for further details on ISAs
  
  Has anyone been through similar circumstances and had a different solution which has worked? Let us know
  
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