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What are we each entitled to in our divorce settlement?

What does the law say about how to split the house, how to share pensions and other assets, and how much maintenance is payable.

What steps can we take to reach a fair agreement?

The four basic steps to reaching an agreement on divorce finances are: disclosure, getting advice, negotiating and implementing a Consent Order.

What is a Consent Order and why do we need one?

A Consent Order is a legally binding document that finalises a divorcing couple's agreement on property, pensions and other assets.

 

Exchange rates in financial settlement

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29 Apr 24 #522965 by Advice-seeker
Topic started by Advice-seeker
We are trying to settle out of court. We own a propety and some savings in both France (where I am) and the UK (where he is). He is saying that any monies from France can't just be split and his share of euros sent to him, but rather that I need to take the exchange rate at the time into account and convert what I share with him to reflect this, so he doesn't lose out by the euro being weaker than the £. Is this correct? Would the courts do it like this?

  • WYSPECIAL
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30 Apr 24 - 30 Apr 24 #522967 by WYSPECIAL
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What difference will exchange rates make?
If you split the value of something, say 50/50, then you get half each. What you then do with your half is up to you.
If you sold for €100 then you’d get €50 each. If you sold for £80 you’d get £40 each. It doesn’t matter what currency you express the value in.
Last edit: 30 Apr 24 by WYSPECIAL.

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01 May 24 #522978 by hadenoughnow
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If you have bank accounts in euros and it is savings in euros that are being divided it is fine to make part of any payment in that currency.
If you are balancing assets in euros against assets in sterling the exchange rate may be relevant. You would need to agree a date to crystallise the exchange rate to get a sterling equivalent. You could agree to change it if there are massive fluctuations but minor changes should not be an issue.

Hadenoughnow

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01 May 24 #522983 by Advice-seeker
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I think his concern is that, say there is €1 000 that needs to be split. I live in France, so get to keep €500, whereas when I send him €500 in the UK it will, for example exchange as, say, £427 at today's rate. So he considers that unfair! We came to live in France together. It has been his choice to go back to the UK, and I do not feel personally responsible for exchange rate variations.

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01 May 24 #522984 by Advice-seeker
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Thanks for your answer. We have a house to sell in France and a flat to sell in UK. I guess some adjustments on the hard assets may be required. On the other hand, I believe a court would consider my housing needs, going forwards, and less that 50% is going to make finding even a humble home a challenge for me here.

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02 May 24 #522995 by .Charles
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It is also possible to transfer to a card that accepts different currencies like Revolut.

He can keep it in Euros and exchange it at any point to whatever currency he sees fit when the exchange rate changes in his favour.

Charles

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