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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.


deferred charge on property

  • jasmine
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15 Sep 07 #3395 by jasmine
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Can someone please explain how a deferred charge on a property works. If the current endownment mortgage is in joint names. The ex tb has not paid either the mortgage or endownment policies since oct 2006. His solicitor is recommending that he goes for a 30 per cent deferred charge on the property. He is paying csa minimum for child maintenance only. Would he have to continue paying 30 per cent of the mortgage , what are the trigger events for the property to be sold and he get his money.

  • Fiona
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15 Sep 07 #3396 by Fiona
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Basically the FMH is transferred to your name, you pay the mortgage and your x2b retains his interest as a charge against the property. The usual triggers for sale are the youngest child reaching 18 or if the person living in the property cohabits, remarries or dies.

Depending on the 'need' of one party and the ability to pay of the other sometimes spousal maintenance is paid which may help with mortgage payments.

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15 Sep 07 #3411 by jasmine
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In this type of situation does the x2b keep the endownments as part of the deal or as they are attached to the current mortgage are they used as payment to clear the mortgage when they mature

  • LittleMrMike
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15 Sep 07 #3421 by LittleMrMike
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An endowment mortgage is one way of repaying the capital sum borrowed. The policy will be charged to the lender and on maturity the lender will apply the money in satisfaction of its debt. There may be a surplus or there may be a shortfall and it may be necessary in such cases to agree or determine how such situations would be dealt with if they arise. I would have expected that, since the endowment policy is part and parcel of the mortgage arrangement with the lender, the spouse who pay the mortgage interest would also pay the endowment ; but like most things it is negotiable.

Mike

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15 Sep 07 #3427 by jasmine
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So if the mortgage is transferred into one persons name. They continue to pay the interest only and endownment part. The only calcuation for the division of assets is the value of the house less debt less selling cost as the endownments are being used to clear the final debt.
or is it value of house plus surrender value of the endownment less debt less selling cost.

or is it value of house plus projected value of the endownment less debt less selling cost

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15 Sep 07 #3430 by Fiona
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15 Sep 07 #3431 by jasmine
Reply from jasmine
Thank you so much for replying I will let you know how I get on.

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