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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.


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Our consultant service offers expert advice and support to help you reach agreement on a fair financial settlement quickly, and for less than a quarter of the cost of using a traditional high street solicitor.


Worried I am going to lose house

  • Sara h
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29 Aug 21 #517580 by Sara h
Topic started by Sara h
Hi, I am posting for a bit of advice on experiences. My ex and I separated two years ago. I remortgaged and bought him out of our house and we did a transfer of equity. He bought his own house. All was amicable. I gave him £16,000 with the remortgage and we said if I was ever to sell the house I would give him an additional £5,000. At that time there was around 30-40k equity in the house. We have two children and we co-parent 50/50. We both earn around £50,000 a year however my contract ends in a year. I am 34 and he is 42.Now it has been two years we decided to start the divorce. However my ex suddenly demanded I get the house valued as he wants more money now that house prices have increased. He had previously signed a letter with the conveyancer stating that he gave up his rights to any equity. At the time of the split we were left with equal amounts of savings- mine was from the joint savings account (which only I had contributed to) plus a compensation payment and his savings were from the sale of his car as he was getting a company car. My ex is saying his savings can not be taken as the “marital pot” as they came from his car sale whereas mine came from the joint account. In terms of the equity in our houses there is around 40k equity in his and around 75k equity in my house. I have worked out an agreement based on the total equity equaling 115k- so 57.5k each. He already has 40k equity in his house, plus the 16k I have given him, meaning I owe him £1,500. Please could someone tell me if I am working this out correctly? He is adamant it should go off the prices originally paid for the houses vs the value today and he is demanding we go down the legal route despite knowing I can not afford legal costs- I can’t get into more debt because my contract ends in a year and I will be on a lesser wage then. I am also worried he is going to be hiding money/put his new partner on the mortgage because he is so adamant he is entitled to moreThank you

  • hadenoughnow
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30 Aug 21 #517583 by hadenoughnow
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If the 16k was invested in the property then it will be part of the equity, not a sum in addition to it.

All savings are part of the pot.

The question here is whether the agreement that was made and enacted should stand. Do you have anything in writing apart from the conveyancing document - a paper trail of email discussion or similar perhaps?

Was the agreement to pay a further £5k converted into a charge against the property?

What are the precise figures involved here? £16k is half of £32k - you have said the equity was £30-40k. Did you get the property valued? Did you take costs of sale into account?

You talk about the equity in your respective properties but what are the respective market values, property sizes and types?

How long was the marriage/cohabitation?

How old are the children?

Do you have pensions between you?? Any idea what they are worth??

Sorry about all the questions but it helps to get a better picture of things.

Hadenoughnow

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30 Aug 21 #517592 by Sara h
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I have an email trail with the conveyancer and with my ex I have text messages saying he agrees that he is happy with the above being the financial split.

The further 5k was just an informal agreement- it would be paid if I ever sold the house. It was done because the mortgage lender would not let me borrow more than 13k (I topped this up to 16k with my savings)

Yes the property had a mortgage valuation at the time of the split which valued it at £215,000. At that point £173,000 was owed on the mortgage. The property has since gone up in value to around 230k (with only myself paying the mortgage). Costs of sale were not taken into account.

My house is a 3 bedroom detached with two living rooms. His is a 3 bedroom Semi detached with two living rooms. Mine is worth around 230k now. His is worth around 175k now and was bought in 2020 for 152k.

We were cohabiting since 2004, married in 2010 so married around 11 years although we separated in 2019.

The children are both 4 years old and he is now having another baby.

Yes we both have pensions. Unfortunately I do not know the value of his, however I have only been paying into a pension ten years whereas he has been paying into his double that time so I think his will be significantly larger.

Thank you so much for your response

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30 Aug 21 #517593 by hadenoughnow
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It does not seem that the equity split was too far off the mark.

I would be inclined to tell him you have been advised that pensions should be shared and ask him for his CEV.

If his pension is very much larger than yours he may have to transfer part of it to you. If it comes to it, you could always offset some pension against capital but tbh it doesn't sound like you need to.

Hadenoughnow

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