I just discovered that my husband has about £100k loans, probably used to feed his gambling (trading in stock market!) addiction. Just about to file for divorce for many other reasons. Can someone please tell me if debt is split equally upon divorce even if the money wasn’t used towards the family?
Oh dear. The real question here is going to be how much is left in the pot for you each to house yourselves and any children.
We would need a fuller picture of the finances etc before being able to advise.
Length of the marriage plus cohabitation
Incomes including any benefits
Children - ages, gender and proposed arrangements for them.
Market value of former matrimonial home (FMH)
Size of FMH.
Pensions - type and CEV
Value of other assets in sole or joint names.
Loans/debts in sole or joint names.
Thank you for the reply! Please see below few more details:
Ages 40 and mid 40
Length of marriage 14 years, 3kids, all boys (youngest 6y old). Propose that they stay with me (mum) as have been main carer (husband moved countries a lot for his job and won’t be able to offer them stability)
Income: both working full time I take in 50k, husband earning 800/day but paying himself through limited company
About 200k equity in the house + 450k outstanding mortgage
No other savings/assets I know off (you would hope husband has some savings given his income?)
Pension about 15k for me (as didn’t work in long time when kids were little), husband about 35k as he has been mostly self employed (so not huge amounts there!)
No debts on my name (apart from 4k in credit cards), but at least 4 big loans on my husbands name totalling about 100k (he also has about 13k on credit cards) . just to be clear I wasn’t aware of these loans and the money was not spent on us (as family). I still contributed towards mortgage, paid all childcare costs, expenses etc. I am just in shock as a high earner like him shouldn’t need any loans!
I was hoping i will take at least half of the equity in the current house to use as a deposit towards a smaller property for me and the kids. My mortgage capacity is limited whereas husband should be able to save for a deposit/afford a big mortgage with no issues. Any thoughts, I am panicking about the thought of having to pay off debt that I didn’t incur! And if that’s split equally, It won’t leave me much to rehome the kids appropriately!
Just to add, we currently live in a 4 bed property, so each of kids have own bedroom. 2 of the kids have special needs and ideally will need separate bedrooms if we move. Hoping to afford a 3 bed (all depend on deposit I will end up with) and share my room with little one or use sofa bed!
Husband v controlling, and abusive so want a Clean Break with no ties!
I would sever the joint tenancy ASAP. You can do this unilaterally by serving the appropriate notice and registering with land registry. This would mean you own both halves of the property as separate shares. Any creditors would only be able to register charges against his share.
You do need full financial disclosure before reaching any agreement. I am not sure if the pension figures you have given are the values of the whole fund.
Carrying debts at that level would have an impact on his mortgage capacity. I would be interested to know what he has bought with the funds and what the current value is. Have losses been crystallised by the sale of these assets or are they still held?
Well, sadly the money has probably gone into day trading. He essentially gambled all of our savings away! And the values above for pension are probably what we have in the whole fund. I stuck by his side fir far too long! I am really worried about the equity in the house. That’s all the assets we have. Can I argue for a bigger share than 50% in order for me to rehome the kids appropriately? Unfortunately, he will probably waste his half as he did with all if our savings!
Another question please: what happens if my soon to be ex moves overseas when we start financial settlement. Will that delay things or can we keep things moving even if he is overseas since me/kids etc are uk based?