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What are we each entitled to in our divorce settlement?

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house sold - finance split advice please!

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22 Aug 12 #351100 by weebelswobble
Topic started by weebelswobble
Hi All

We have sold our house and now desperately need to reach a financial agreement before sale goes through. The house is only in his name and i would prefer an agreement before i release the interest i have registered in property.

Anyway, details as follows

Me 33, him 43
Children - son 5 (will live with me), he has 2 other children 13&11 who live with their mother.
Marriage 4.5 years (lived together 4 years before marriage).
Assets - house just sold - equity £155K
2nd house we rent out (used to be FMH also in his name) value £250k, equity £50k.
Debts - we estimate £25k to cover costs of house sale and both our debts
So equity minus debts is approx £180K.
Pensions CETV me £3K (only just started) him £95K.
Wages me £20K, him £90K.

The offer he mentioned the other day was me have £100k of equity after debts (approx 56%) and £200pcm spousal maintenance. He would then keep other house (no idea if he will live in it or continue to rent it out, i think he may continue renting it out)(50K equity) and take the other £30k equity.

I have no idea if this is anywhere near close.

Thank you in anticipation of your replies
Weebel

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22 Aug 12 #351143 by Action
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Is there child maintenance on top of that?

Will that split enable you to buy a suitable home and cover all your outgoings? Can you get a mortgage?

I think, given that your son will be living with you, the vast difference in salaries and pensions, his offer appears a bit on the low side.

Hopefully someone on here will be able to advise you more accurately.

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22 Aug 12 #351150 by weebelswobble
Reply from weebelswobble
Thanks for your reply.

Yes he will have to pay CM of approx £250-300pcm.

I could buy a 2 bed house from around £140K (an ex council house for example) but if i can argue not the standard of living we were having before (assume that is a factor) then an equivalent 2 bed house would be around £165K.

I believe (according to a couple of banks mortgage calculators) i could borrow up to around £100K.

If i borrowed approx £60K on top of the £100K he is suggesting then i believe that things will still be quite tight for me each month (i will take home approx £1k pcm plus £300pcm CM and his proposed £200pcm SM, plus benefits of approx £150pcm totals £1650). Mortgage payments would be in region of £500. It sounds like a lot left but i fear by time i pay food and bills too!

Thanks

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22 Aug 12 #351155 by Action
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Have you completed a monthly expense schedule? I found it quite staggering once I listed everything. I believe there is one on this site that you can download.

You really should be looking at what your needs are and that you will not be disadvantaged by accepting this offer. Also, I would not recommend relying on an online mortgage calculator as mortgages do not seem as easy to get at the moment. You need hard facts: estate agent details of suitable properties, a list of all your monthly outgoings, a firm idea of what you can borrow etc.

Have you had any legal advice or been to mediation?

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22 Aug 12 #351158 by cookie2
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weebelswobble wrote:

Yes he will have to pay CM of approx £250-300pcm.

On a salary of £90k? I don''t think so! More like £750.

I think his offer is extremely low. If I were you I would make a counter offer than he will pay CSA level of CM and you will have all the equity from the FMH. In exchange, he will keep the 2nd property and his pension, and you will forego spousal maintenance (except nominal).

I think if he has even half a brain on his shoulders, then he would accept this.

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22 Aug 12 #351159 by weebelswobble
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I just completed a a monthly budget and you''re right, it scared the life out of me! It worked it out at £1600 per month.
The only luxuries i allowed in that was £35pcm on gym, £20pcm for me for clothing/shoes (for work if nothing else) and £25pcm for sky.
That would mean that actually i can put a roof over my head, pay my bills but do nothing other than sit and watch sky or go to gym (when i dont have son). If not i cant afford to do a single thing!!! Arghhhhh!

I have an appointment booked with financial advisor to get real info on mortgage, and my figures for housing is based on houses for sale on Rightmove.
Thanks

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22 Aug 12 #351160 by weebelswobble
Reply from weebelswobble
Hi Cookie

Thanks for your reply.

The reason CM is £250-300 is because he has 2 other children that he pays for CM for, so it is 25% of income less tax,NI and pension divided by 3.

Thanks

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