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What are we each entitled to in our divorce settlement?

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Charging her boyfriend rent?

  • Jacko
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27 Dec 07 #9590 by Jacko
Topic started by Jacko
It has been suggested to me that I'm within my rights to charge my wife's boyfriend rent as he is now living in the FMH.

The property is jointly owned by me and my W. The mortgage was repaid 3 years ago.

1)How realistic is charging rent?

2)If he wont pay could payment be sought through the small claims court?

3) What pitfalls are there likely to be?

  • attilladahun
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27 Dec 07 #9592 by attilladahun
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An old argument which is more theortical than practical...

In cases where there is a mortgage the occupational rent charged (which is taxable in your hands) often is cancelled out by the mortgage and other standing costs of FMH

Is there an Occupation order made which prevents you from occupying the property?

Now with no mortgage outstanding the only charge to offset would be the insurance cost..

Think of the positives.....if he is waged..there can be no SM (Spousal Maintenance)!!

If he has an income then that is a "resource"...easier thus for her to raise funds to buy out your equity in the property.

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27 Dec 07 #9597 by Jacko
Reply from Jacko
attilladahun wrote:

An old argument which is more theortical than practical...



Is there an Occupation order made which prevents you from occupying the property?

Think of the positives.....if he is waged..there can be no SM (Spousal Maintenance)!!


There are no orders, only thing that prevents me living there are the new door locks!! not worth the hassle going in anyway.

Unclear whether he works or not as neighbours say he's always there. Apparently he is a welder (unless he's coded) won't be earning much.

He thought it very funny to tell me how nice and warm the house is and maybe we should discuss a financial settlement.

I will Let him carry on getting comfortable then!!

  • Specialdad
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28 Dec 07 #9621 by Specialdad
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Dont leave it too long jacko otherwise you will paying wonderful Capital Gains Tax on any proceeds you receive as it is not your principal private residence.

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28 Dec 07 #9649 by Jacko
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Specialdad wrote:

Dont leave it too long jacko otherwise you will paying wonderful Capital Gains Tax on any proceeds you receive as it is not your principal private residence.


Not sure about timescale on this?

1st house I bought lived in it for 18 months got made redundant so relocated with a new job and bought 2nd house FMH. rented out the 1st house for 5 years. Got made redundant again! sold 1st house and cleared both mortages. Because i had lived in the 1st house didn't have to pay CGT and as I can remember didn't have to combine our CGT allowance. What is the CGT threshold these days?

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28 Dec 07 #9657 by Specialdad
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You will be taxed on any gain on the property value after you left the property unless you obtain a mesher order.

The annual exemption for 2007/08 is £9,200.

Tax will at your top rate of income tax after taper relief.

  • Monitor441
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29 Dec 07 #9667 by Monitor441
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You have 3 years exemption from CGT on what was your principle residence. Even if you obtain a Mesher order you will still be charged CGT if the order is made over 3 years after you have left the house.
Mon

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