Many divorcing couples have endowment policies that have been running for a
number of years. Although it is better for one or other party to retain those
policies if at all possible, their value if surrendered or sold can often
provide a useful lump sum with which to achieve a fair division of the assets.
The nearer the policy is to maturity the less likely it is that it will be
surrendered or sold because of terminal bonuses which will add substantially to
its value .
Where a party agrees to pay maintenance or is ordered to do so especially
where there are dependent children, it is very important to consider insuring
that person's life so that in the event of premature death funds are available
to meet the dependent parties continuing needs. Term assurance policies which
cover such risks acquire no value and are relatively inexpensive.
Unless they are particularly valuable a Court is unlikely to agree to
valuations of house contents, motor cars and jewellery. The parties are
encouraged to try and agree a division of these items between themselves leaving
the Court to deal with the major issues of housing and maintenance.