If the heading of this blog sounds like the start of a football manager’s half-time team talk I apologise.
In this context it is about making sure that what is promised to you actually becomes yours.
On Friday I met with a lady who is going through the painful, and somewhat drawn out, process of divorce.
She has been put off getting legal advice by the cost; we wrote about this subject just last week. However, in this ladies case the cost of good legal advice might be much less than the cost of something going badly wrong.
Her husband has agreed that she can retain the property in which she lives in the UK, she can also keep the buy to let property that they jointly own and he is also prepared to give her close to £400,000 of his investment funds.
So far so good because the value of these assets is actually quite substantial and she will need them to generate supplementary income for the future, but as I explained to her yesterday, him offering these assets and her ultimately enjoying the benefits are two entirely separate things altogether.
Both properties are subject to mortgages, quite small in relation to the equity, and both the properties and the mortgages are still in joint names.
The investment fund of which he has offered a share is still in his name and invested offshore.
The healthy cynic in me is concerned about this.
Until the property assets are actually in her name she won’t be able to deal with them as she wishes to do, possibly selling one and using the proceeds to pay off both mortgages.
The offshore investment I have suggested should be cash (not unusual story really of a very cautious investor with a quite racy equity portfolio) and in a UK bank account and in her name.
Until that happens control lies not with her but with her ex-husband to be. He could withdraw and spend these funds or they might plummet in value if inappropriately invested.
Even very basic things need to be dealt with such as the fact that a monthly life assurance premium is being deducted from her bank account to pay for a life policy the proceeds of which might not even be paid to her if he were to die.
Her ISAs which the ex husband established for her are invested in international mining company shares!
My advice to her is very direct; engage with a solicitor now and turn his offers into reality. Get possession of them now and have the comfort of knowing that they really do belong to her.
Possession of these assets, like possession of the ball in football, is vital if she hopes to win.
Photo credit: Flickr/renaissancechambara
