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Dividing up assets when have multiple properties.

  • Deborah66
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2 years 8 months ago #499442 by Deborah66
Without a full financial picture to include the following information:

1. Your respective incomes, with and without rental income and estimated future expenditure for each of you ( I think you have set out yours, but your husband's is unclear, what is his gross annual income from his employment and net income
2. Agreed valuations of all the properties
3. Your respective borrowing capacities
4. Costs of sale of the rental properties (estate agents and solicitor's conveyancing costs and potential GCT liability)

The circumstances of a case needs to be looked at as a whole. I can see you are trying to see if there is a way for your to remain living in the former matrimonial home, a Mesher Order is not ideal, as a husband retains a share of the matrimonial home and wife may not have enough funds in the future on a sale to buy another property, it ordered usually where there is no other alternative to provide a home for the wife and children, here you have other assets and both have a borrowing capacity.

Looking again at the figures and saying hypothetically you were to remain in the fmh,
1. Pensions are not added to liquid assets to give total assets to be divided, they are separated as they are future income.

So the fmh has an equity of £160K, the other properties total £145, your husband's debt which is accepted is a joint debt of £30 would need to come out of the proceeds of sale, that leaves £115 (less estate agent costs, solicitor's costs and potential CGT liability) how much would be left over, is it realistic for all or any of these properties to be sold, so you really need to have a clear idea of value and costs of sale and CGT liability. It may not benefit either yourself or husband for these properties to be sold as there may be little proceeds of sale dependent upon the costs of sale and CGT figures.

2. So then looking at an argument for you to stay in the matrimonial home, with you both keeping some or all of the rental properties, look at which property would have the least CGT to be paid upon sale. I do feel that at least one would need to be sold and the £30K debt repaid.

Staying in the fmh needs to be based upon realistic figures of your ability to pay mortgage and bills at the fmh. So the arguments comes back to your ability to receive an income of £2300 a month and you would need to be sure that that was an amount you could live on and an amount you would receive with your income (potentially without a rental income) benefits and child maintenance .

What would be left over for your husband, if he was keeping the 3 properties he already has, they would have a net equity of £187K, what about property four, in your name, what is the GCT liability etc and costs of sale. Could it repay the £30K joint debt.

If not sold then you would have £208 and your husband £187K but the £30K joint debt could not be repaid, you each have around £10K savings, so that could repay £20k of the joint debts.

Back to your ability to afford to remain living at the fmh, and getting more information as above.

Your question about whether the FMH could be transferred to you, the mortgage lender would not agree to a transfer and the release of your husband from the mortgage.

There could be many creative solutions, but without full financial information, income and borrowing capacity, tax liability, you cannot make an informed decision.

Best wishes
Deborah

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  • Davdan
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2 years 6 months ago #500734 by Davdan
Hi
Please need advise

Just sent off divorce petition based on UB

Married 16 years
Two kids 13 & 15

Assets:

Matrimonial home three bedroom solely on my name paid deposit all home improvement and paying monthly mortgage
Value £900,000 mortgage £222,000

Inherited a flat from my late mother
Value £220,000 no mortgage currently used to accommodate my family members when visit from overseas

My husband has 3 properties in rent all in his name (I paid the deposit for one of them in 2016)
Equity for all three is £450,000 the rents pay all their mortgages and bills

Total assets equity: £1,360,000

Incomes:

H - £65,000 plus £15,00 overtime pa
Saving £50,000
Pension as well but do not know the value

Me - £42,000 pa
No saving
Pension awaiting to find out the value

Questions:

1/ is my inheritance flat be fully counted into the assets pot?

2/ what would be split 50/50 or 50/60

3/ my intension is to keep MH and inheritance flat with no share for him
I am happy to offset this for CM
So he does not need to pay CM


Please advise

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  • hadenoughnow
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2 years 6 months ago #500747 by hadenoughnow
Replied by hadenoughnow on topic Re:Dividing up assets when have multiple properties.
It is better to start your own thread please - that way you can be clear that the responses relate to your situation.


Thanks Hadenoughnow

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