My husband and I have separated. We have begun to discuss what assets we each have and how they can be divided in the event of a divorce. He has mentioned family trusts in the past, but I know almost nothing about them, and he says that any trust interest he may have is “worthless.” Are trusts relevant to the financial aspect of our separation and how do I know if they have any value?
Burgess Mee Attorney Suzanna Brown She says her husband has a duty to disclose all of his assets, including trust interests, regardless of their value. You will need to learn more about trusts to understand their relevance to proper financial settlement.
Your husband may be a beneficiary of the trust, which means he is eligible to receive something from the trust (for example, a lump sum, distribution, or loan). Alternatively, you could participate in the establishment (as settlor) or administration of the trust (as trustee).
You must apply for the trust deed or equivalent, including wills and letters of wishes, and any subsequent variation deeds; at least three years of trust accounts and an estimate of their current value; confirmation of the present trustees and beneficiaries; a schedule of all distributions, appointments and benefits made to beneficiaries for at least the last three years; and a brief description of the likely position of the trustees with respect to future distributions. You should also find out if you or any of your children are also beneficiaries, as the trustees can make payments for your benefit (if they agree) rather than for your husband’s benefit.
You may need specialist advice to value the trust and determine liquidity, depending on the type of asset (for example, a property or a business).
If there has been a pattern of payments to your husband or family during the marriage, the trust could be considered a resource available to your husband, which could mean that some or all of it could be considered part of the assets to be divided. The question for the court to consider is what the trustees would do if a beneficiary asked them for funds. This may be based on the trustees’ past actions towards your husband and other beneficiaries. If, for example, another beneficiary got divorced and the trust purchased a house for one of the parties, this would be very relevant.
It is also possible to vary the confidence. You would need an attorney to review the trust deed and the history of the trust to determine if it could be considered a “nuptial agreement,” which is a trust created for the benefit of one or both parties to the marriage as a spouse. . If so, the court has the power to change the terms of the trust, for example, to create a subfund for the spouse.
Some trusts may be based abroad. This can complicate matters when an English court is asked to review agreements, as many jurisdictions have “firewall” legislation designed specifically to insulate the trust from attack.
How can I negotiate a new bonus structure?
I work in the banking industry and was recently offered a new position. I am currently paid through my salary. In this new role, the base salary is actually a little less, but with a bonus structure that means I could earn five times my current salary if I achieve my goals. I’m a little nervous because so much of my salary depends on a bonus structure. Is there anything I can ask for in my contract to protect myself? Furthermore, I am not entirely satisfied with the title I have been offered. What is the best way to address the problem?
Dan Parker, Senior Associate in Employment and Partnerships at Forsters Law Firm, says there are certainly some questions you can ask to help calm any nerves surrounding your bonus.
First, it’s important to determine whether your bonus is contractual or discretionary. A contractual bonus must be paid, provided you have met the payment conditions. In contrast, a discretionary bonus typically allows your employer to decide whether to pay any bonuses and, if so, how much. A contractual bonus is definitely preferable, especially considering the slight pay cut you will take. However, for senior risk takers, banks are encouraged to have an appropriate mix of fixed and variable remuneration, with conditions to create reasonable performance incentives.
If your bonus is based on objectives, it is generally wise to seek clarity about what those objectives are. For example, will the objectives relate solely to your own performance in the business or will they be assessed against the performance of the bank as a whole?
In the case of the latter, it may be prudent to obtain some assurance from your employer about the likelihood of the bonus being paid, taking into account recent business performance and future forecasts. However, if the bonus is based entirely or partially on your own performance, it is important to make sure those goals are realistic and achievable.
Part of that could be agreeing a slightly lower performance target for your first bonus year, to take into account the time spent settling into your new role, whether that’s training, induction or simply developing the business. Ideally, you should explore whether you can guarantee your first year bonus, regardless of performance. However, if an agreement cannot be reached, it may still be reasonable to request a lower performance target.
Finally, it is worth considering the “catch-up” provisions available to your employer in respect of your bonus. These provisions allow employers to reduce or claim bonuses in response to issues such as serious misconduct or accounting errors. They are especially common in the banking sector, after they were encouraged in the regulatory environment following the 2008 crisis. Knowledge of these provisions is key, especially given that your bonus is likely to make up a large part of your annual remuneration. .
Our next question
My partner and I are planning to buy a property in the next few months. We have been together for seven or eight years, although we have no intention of getting married anytime soon. My parents are giving me £50,000 for half of our deposit, but only on the condition that my partner and I sign a cohabitation agreement. They say it is necessary to protect my interests. If we don’t sign an agreement, I’m worried they won’t help us. Is the agreement really necessary? And would it protect my interests or theirs?
Regarding your title, it is certainly not unusual to negotiate it before starting your new role. If you found the opportunity through a recruiter, it may be a good idea to discuss your degree with them first. They may have a better idea of the company structure and whether there is any flexibility in jobs.
If you haven’t used a recruiter, it’s a good idea to get a better idea of your team structure and progression path before starting any discussions. For example, if your team is very small or only contains a finite number of jobs, it may be more difficult for you to negotiate a higher position. Conversely, if job titles are relatively diverse within the company, you may have greater scope to make your case. Ultimately, if you believe there is a discrepancy between your experience and your degree, you should consider pointing that point out.
The opinions in this column are intended for general information purposes only and should not be used as a substitute for professional advice. Financial Times Ltd and the authors are not responsible for any direct or indirect results arising from any reliance placed on the responses, including any loss, and exclude all liability.
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