Are future earnings taken account of in a divorce settlement?

If you are contemplating getting divorced then your future financial security is likely to be a key concern, particularly if you gave up or compromised a promising career to look after children and support your spouse in their career.  High costs and scarcity of childcare can also make it necessary for one parent to give up work, and a lengthy break can make it very difficult to return to working at the same salary level and getting a career back on track. You might think that having supported your spouse in their career, their earning capacity is an asset which was built up during the marriage and therefore you should be entitled to a share of it, in the same way as a pension.  ‘But this is not the case, as clarified in the Court of Appeal…

Employee benefits; pitfalls to avoid

Employee recruitment and retention remains challenging for employers and offering an attractive package of benefits can give employers an edge. A wide range of benefits can be offered, including buying or selling annual leave; reduced gym membership; private medical insurance; critical illness insurance and retail discounts or vouchers. ‘Employers need to take care with employee benefits as the rules around different benefits can be complex, and there are often unanticipated knock-on effects,’ explains Kalpesh Nakeshree, Head of Employment Law with Ware & Kay in York & Wetherby.  He outlines the key pitfalls to be aware of and explores the Government’s cycle to work scheme, by way of a practical example. Benefits of little value Although it may seem obvious, employers need to make sure that what they offer remains valuable to their particular workforce. Employees looking…

Seeing the wood for the trees on investment

Can you help the environment and save some tax? Laura Schofield from Ware & Kay Solicitors considers inheritance tax planning and woodlands. Brief inheritance tax position Inheritance Tax is a tax on the estate of someone who has died. Inheritance tax can be complex but the rate of tax is 40%, above the ‘nil rate band’ on which there is no inheritance tax to pay – this band depends on the individual’s family circumstances and assets.  Example       Bob has never married and has no children.  When he dies, his estate is worth £1,500,000.  £1,500,000 less £325,000 = £1,175,000 subject to IHT @ 40%  = £470,000 tax to pay However, on top of the nil rate band there are other reliefs and exemptions that can, with careful planning, be used during lifetime or in a Will to…

Resolving a family dispute over choice of school

As a parent you will always strive to do what is best for your children, but for separated parents this can sometimes lead to disagreement when what is best in one parent’s eyes does not align with the other parent’s view.  ‘While education is undoubtably an important factor for a child’s development and welfare, and for their future success and happiness, it can also be the subject of a family dispute if parents disagree over where a child should attend school,’ says Robert Bellhouse family law expert at Ware & Kay in York & Wetherby. Parents may have had different experiences of education, with each feeling that their schooling worked for them and will be best for their child.  Disagreements can arise over nursery, primary, and secondary schooling or whether your children should be home-schooled.  It…