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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.

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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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Will a charging order effect her buying me out?

  • cabbage76
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07 Mar 14 #424870 by cabbage76
Topic started by cabbage76
hi, we are currently getting divorced and i have moved out of the marital home. she is still there with the 2 kids. In a few weeks there will be a charging order going on the property from one of my creditors from my debt in my name. if it does go on can this effect things for her if she wants to take on the mortgage in her name and/or try to buy me out? is it common for a creditor to force sale? I could just about pay off the creditor but it would mean me using all my life savings! any thoughts? thanks

  • .Charles
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07 Mar 14 #424874 by .Charles
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The charging order will be registered on the property and will be your responsibility. Whilst this remains you cannot sign away your interest in the property as you will not have power over the portion of the property that is Charged.

The Charge will have an effect on your ex''s ability to obtain a mortgage. The loan to value ratio will be altered for a start.

Charles

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07 Mar 14 #424896 by cabbage76
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ok, thanks. so to move forward and settle financially am i best to clear this debt before the charging order goes on? i don''t know what her intentions are?

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07 Mar 14 #424909 by .Charles
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That''s a matter for you to decide. If the debt can be classed as matrimonial debt i.e. you both derived benefit from the monies borrowed, it might not be in your interest to clear it.

However, there are many factors to consider - you should seek legal advice on your options.

Charles

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07 Mar 14 #424919 by cabbage76
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hi, thanks. what does concern me is a letter she has recived from my creditor which states;

"...The charging order would remain registered against the property until such a time the debt is cleared in full. We (the creditor) will force you to sell the property and would look to recover the debt if there was any equity following completion of sale from your ex-husbands share only."

So, even though they have written to me to say there will be no force of sale on the house, it sounds like they can force sale if I get equity?

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07 Mar 14 #424925 by .Charles
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That''s over simplifying it somewhat. If the Charge is registered it cannot be removed easily. Even if you were to sign away you beneficial interest in the property, this could be challenged at a later date. The court can make an order dividing the finances but all assets and liabilities will be taken into account which will include the Charge.

Charles

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25 Jan 16 #472988 by Lipstickandlollipops
Reply from Lipstickandlollipops
This is very interesting, do I take it that when the trustee in my husbands bankruptcy offered to sell me what had then become his (the trustee) interest in the property, he didn''t in fact have the right to sell it to me because the creditors with the charging orders had first dibs anyway? I must confess that I do feel something was very wrong with that process and needs looking into. One thing that strikes me now is that the official receiver and myself used the same solicitor, I had to send a cheque for £211, £1 to buy husbands beneficial interest, and £210 legal fees. I now realise that was quite possibly a conflict of interest.
Not happy at all!

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