I am applying for ancillary from my wife and the first hearing is in August. I have borrowed about £15K from friends and family over the past year and was wondering if that would be taken in to account when assessing? I was told that the "loans" are not taken in to account when assessing.
So, as a result of this, I am in the process of drawing up official loan agreements with those concerned so it is all official and above board.
1. Would this be acceptable to the court and taken in to account when making a decision over Ancillary Relief and
2. What would hold more legal standing, a PROMISSORY NOTE or a LOAN AGREEMENT?
thanks for your time in reading this guys and I duly await your responses
Loans from friends and family are usually considered soft loans by court, it does not really matter what you have on paper because strictly speaking only loans from those who have a credit brokers license are true lawful loans.
Its not to say it wont be considered it will but court can only really take them into account if assets allow, so its a case of what will be left from the pot when basic needs are taken out, housing being the first need.
there is absolutely nothing in the pot at present.
We have shared care of our two children (10 and 11)
The children live with me for 47% of the year to her 53%
My ex wife lives in a 3 bed council house, earns a part time wage of £20,500,
receives all tax credits (including disable premium for our eldest), high rate DLA and high rate mobility totalling £350pw meaning she has a total income of nearly £700pw
I on the other hand work part time and earn £1160per month,rent of £750 per month and council tax of £90 per month leaving me £320 per month to pay utilities, food etc and run a car and support my kids on. I have been asking her since August 2011 if she can sign over one of the child benefits and give me a proportion of our eldest DLA and mobility but she refuses to. She sees the benefits as her money and not for the benefit of the children. I have had no choice but to apply to court for ancilliary relief, ie maintenence pending suit, spousal maintenence, pension sharing order etc
I really dont want to do this as it will incur considerable costs on both sides, which i know i can''t afford, i still hope that we can reach mutual agreement but we have been in this position for the past year so i''m not holding out much hope.
I just feel that our children are at a huge disadvantage when they are living with me due to the large disparities of incomes in the two homes. Her actions regarding our disabled son''s benefits are unreasonable. Basically implying that when he lives with her, he is 100% disabled but when he lives with me, he is able bodied as i am not entitled to any financial help.
I will be asking for the MPS to be backdated to August of last year as that is when I started borrowing money from my friends and family to care for and support my children.
I just wanted to know if the court would look at these "loans" and take them in to account due to the exceptional circumstances?
I think you can more or less forget the loans, you took them you`ll have to pay them, it more or less the same for most post separation debt, i suppose you could argue the money was used for the kids, can`t see it getting very far though.
I`m not too sure a judge will be that happy about two parents arguing over childrens benefits, the money including the DLA is for the kids so it should be shared given they spend almost half the time will each parent, i don`t actually know of an order similar though, maybe one of the legal beagles will be able to help.
Unfortunately unless parents have above average incomes shared care 50:50 or almost 50:50 can be difficult financially, if not impossible. Children''s outcomes tend to be poor when they live in poverty so the state supports children to live in one home but paying benefits to two parents is considered something the tax payer cannot afford. If you haven''t already tried you can claim Child Benefit for one child and then WFTC for that child.