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What are we each entitled to in our divorce settlement?

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Joint mortgage to single name

  • SHAZLOO
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08 Aug 20 #513612 by SHAZLOO
Topic started by SHAZLOO
My ex had wanted to keep the house at all costs. When we were married and I was struggling to meet the mortgage payments on my own she reduced her hours at work, forcing me to work longer hours, every weekend and forfeit holidays.
Her salary was not enough to cover the mortgage repayments, however since divorce she has somehow “magically” found the funds every month!
Her hours have not increased!
My question is-she gets tax credits and child tax credits.
She has not made them aware that she has extra income to pay the mortgage repayments. How will this sit with them?
I think her parents must be paying for the mortgage.(£1200 per month)
Thanks in advance

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09 Aug 20 #513613 by WYSPECIAL
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Not sure what your question is but if she is working and there are children involved then she will almost certainly be claiming tax credits.

So long as the repayments are made each month the lender won’t be interested in changes to her income or whether or not her parents are funding it.

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09 Aug 20 #513616 by SHAZLOO
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The question is:
She would of needed to be earning an extra £12,000 income per annum to take on board the joint mortgage. The lender would need proof that she had that extra income in order to transfer the mortgage to her single name.
What I’m saying is, as far as the benefits people are concerned she’s still on part time income of around £13,000 per year plus tax credits(around £20,000 total).
In order to take over the mortgage she would’ve needed to prove sole income of £40,000.
She has not told HMRC about this, or the fact her parents are meeting these huge monthly mortgage repayments.

  • hadenoughnow
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09 Aug 20 #513617 by hadenoughnow
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There's a world of difference between taking on a mortgage in your sole name (and meeting the lender's criteria) and being able to pay the monthly payments on a joint mortgage.

As part of financial disclosure you should each be exchanging information about incomes, assets, mortgage capacity etc and providing documentation in support including 12 months bank statements.

Hadenoughnow

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09 Aug 20 #513618 by SHAZLOO
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Unfortunately she lied on all counts.
She is paying £1200 per month for the mortgage, which we both struggled to pay whilst being together.
Her solicitor confirmed she was getting a monthly “allowance” from her parents, but not sure how well this would sit with HMRC especially as she lives beyond her means in every way.
Tax Credits is wholly intended for those who are on a low income and struggling to make ends meet.
Tax Credits is not there to be used to indulge oneself.

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09 Aug 20 - 09 Aug 20 #513620 by WYSPECIAL
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The amount you can gift your children without tax implications is quite generous.

Almost certainly be of no interest to HMRC or any duty to inform them.

How tax credits are spent is entirely up to the recipient. The government even has a Help To Save scheme where people on tax credits are encouraged to save regularly for several years and paid very generous interest for doing so.
Last edit: 09 Aug 20 by WYSPECIAL.

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