It''s been a while since I last posted, as me and the STBX have been taking things slowly.
We are about to get the ball rolling on the financial settlement and I would like some views on our circumstances. Ideally we would like an equal split if possilbe.
(all properties are in my name although the wife has registered a marital interest in the FMH)
We have been married for 6 years and have 2 children from the marriage and my wife has a daughter from a previous relationship who I have brought up as my own, the absent father does not pay any maintenance. She is 31 and I am 40.
4 bed marital home worth £185,000 with (£67K Equity) wife in occupation.
3 x Investment propertys as follows:-
1 x 3 bedroom worth £150k (£43K equity)
1 x 2 bedroom worth £125K (£35K equity)
1 x 2 bedroom work £100k (£18K equity & I am in occupation)
This is a needs case ideally you both need 4 bed properties, how often do the children stay with you?
What are the monthly mortgage payments on the FMH? Could she find a 4 bed house for less? If the FMH is sold and your wife rebuys this really needs to be weighed up against the costs of doing so and Im not sure it makes financial sense.
Could you move into the 3 bed property? and sell the £125K one to reduce the mortgage on the FMH?
There is no way she could afford a four bed home in the area unless she considered renting, and I wouldn''t want the children moved to be honest.
My plan is to move into a 3 bed house once we have sorted the finances, if I can. The problem arises in that, the only way I can see her staying in the FMH is either to screw me over totally and force me to liquidate the other properties, or by having me stay on the mortgage which will probably prevent me from getting another mortgage.
One solution I keep kicking around is that I could continue to pay a sub account on the FMH mortgage which is £94 a month, which would effectively increase her equity by another £12.5K and then down draw another £15K from the other properties to pay down the FMH to reduce her payments, and help get me off the mortgage sooner.
This would realise a 50:50 equity split, and likewise we could divy up the pension accordingly.
Would this be acceptable in a consent agreement, or would we have trouble getting it through because it''s not a 60:40 or 70:30 which seems to be the norm.
Likewise would I be expected to include some SM here because of my income.
Due to your wifes low current earning capacity and the fact that she is having majority care of the children (am I right) I think 50/50 is probably not going to ride and I fail to see how she will manage financially.
You also have an income differential not large but still significant, if your wife is to be the majority carer of 3 children her outgoings are going to be significantly higher. Is the mortgage interest only or repayment?
the welfare and housing needs of the children are paramount and as yours are young and ex is main carer if you go to court this is the priority. you seem to want to to achieve this anyhow which is great and you can find calculators for maintenance etc on line . Avoid court at all costs, we ended up with an 80k legal bill and the process was worse then the divorce. for my part i had no choice and my split of the bill as hideous as it sounds was a sound investment as ex just didn''t want to cooperate and lied about everything, so i ended up with a fair a settlement as i could have hoped for . i tell you this just so you can focus your mind on not going to court. if you and the ex are amicable why don''t you both just try some of the online stuff or if you are at a total loss then just have a single consultation with a solicitor for guidance on what a reasonable proposal would look like...don''t let them get into trial by correspondence .. if you ex gets a solicitor though i would definitely appoint one yourself as you have a long term commitment to the family and you could be done over if you are over generous now ( plenty of posts on here of other fair minded like you who have been duped into a poor deal).
hard as it is i don''t think you have much choice but to get rid of one of the properties or sell the FMH to reduce the mortgage as there does not appear to be enough money to house you both and have a decent standard of living ...looking at both your income /expenditure would be a good place to start as it would be good to keep the kids at the fmh if they are settled.
The mortgage on the FMH has 2 accounts one at £105K and one at £12K. I have proposed to keep paying the £12K loan which reduces my wife''s mortgage payment to around £420 per month, and effectively increases her equity by £12K.
I would then draw down circa £8K (this is dependent on actual valuations) from the other properties, so that the equity is 50:50 equal in the FMH, and the 3 investment properties. This is of course on the assumption she pays the £8K off the FMH mortgage.
If necessary I could look at pulling more money out of the properties to appease the court, but ideally I wouldn''t want to sell in the current climate.
The income problem is also slightly addressed by taking this approach as my rental income would decrease to cover the extra borrowing to pay the £8K, plus my outgoings increase to cover the £100 per month on the FMH sub account.
In time I would hope that my wife''s hours increase, or she moves the boyfriend in which would ultimately help to get me off the mortgage so that I can look for something more suitable.