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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.

Equity, debts and children

  • adb2303
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  • New Member
26 Jun 12 #339396 by adb2303
Topic started by adb2303
My wife and I are separating. She''s applied for housing benefit, income support, child tax credit, etc. and intends to move out as soon as possible.
We currently have a mortgaged home in my name only. The house has approx £40k in equity. I have approx. 34k in loan/credit card debts. She has approx. 10k in loan/credit card debts.
We''d originally agreed that I would pay all her debts from the sale of the house, including enough for a deposit on rented flat and moving costs. I would then pay off what ever I could with the remaining and we''d go our separate ways.
Now, as things seem to take a turn for the worse, she''s seeing solicitors and CAB about her entitlement. She''s telling me she''s entitled to 2/3 of the equity and £500 a month in spousal/child support. I''m telling her that if she left now, before the sale of the house, I can''t afford to give her the £500 a month - there just isn''t enough left over each month to make that payment.
Our daughter receives disability living allowance, and my wife gets carers allowance.
When it comes to selling the house and splitting the equity - will I be obliged to split it 2/3 with her, or do by creditors come first? thanks

  • cookie2
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26 Jun 12 #339405 by cookie2
Reply from cookie2
We''d need more info to tell - there''s no hard and fast rules about this kind of thing, it all depends on the figures.

1) Length of marriage and premarital cohabitation
2) Number and ages of children, how many nights they spend with each of you
3) Your respective incomes including any benefits
4) Your respective pensions
5) Value of the house and mortgage remaining
6) Any other assets such as savings, shares, cars etc
7) Any debts and liabilities, whose name they''re in, what they were for

  • Reddit
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27 Jun 12 #339410 by Reddit
Reply from Reddit
Entitled is a word that is used a lot here. As Cookie says, entitlement depends on circumstances and according to means and needs. This applies to assets and income. You may have to give more or less of your assets (the house and or pension) to your wife and you may or may not have to give her spousal maintenance too. You absolutely have to pay child maintenance - at least as much as is determined by the CSA.

Taking into account your reasonable needs, you cannot be forced to pay more than your means.

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