A well respected, award winning social enterprise
Volunteer run - Government and charity funded
We help 50,000 people a year through divorce

01202 805020

Lines open: Monday to Friday 9am-5pm
Call for FREE expert advice & service info


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.


Do you need help sorting out a fair financial settlement?

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.


credit or loan debt during seperation

  • TurboB
  • TurboB's Avatar Posted by
  • Platinum Member
  • Platinum Member
More
03 Jul 14 #438537 by TurboB
Topic started by TurboB
I''m you had a need for a car and took out a credit card or loan to fund all or part of the purchase, how would that affect financial settlement?

Is this considered a debt therefore deducted from the ''pot''?

or an asset that you can sell to clear the debt, therefore have little or no impact on your financial status/''pot'' overall?

  • .Charles
  • .Charles's Avatar
  • Platinum Member
  • Platinum Member
More
03 Jul 14 #438546 by .Charles
Reply from .Charles
Post separation assets and liabilities can be ring-fenced although this is not always the case.

If a liability was incurred necessarily this can be taken into account in the matrimonial finances. As an example, if husband left the wife and children and didn''t pay towards the house and children - it would be reasonable for the wife to incur debt to maintain the property and provide food, heat and clothing. It would also be reasonable to expect the debt to be paid from the joint matrimonial pot.

However, if the husband had entered into a rental agreement for a 4 bedroom house in Mayfair where he lived on his own, it would be unreasonable to expect the wife to subsidise this extravagant level of spending.

In the case of purchasing a car, this is down to necessity and reasonableness. If you do 2000 miles per week a leased car makes sense although an Aston Martin would be an unreasonable expense. If you already had a car which would have been fine in the short term, you might be criticised for making unilateral decisions.

Charles

  • TurboB
  • TurboB's Avatar Posted by
  • Platinum Member
  • Platinum Member
More
03 Jul 14 #438548 by TurboB
Reply from TurboB
Thanks.

There is a need for a car, and to be honest it was more of a question of how such purchases are accounted for i.e. are they included in the ''pot'' even if it was bought with a loan?

Moderators: wikivorce teamrubytuesdaydukeyhadenoughnowTetsSheziLinda SheridanForsetiMitchumWhiteRoseLostboy67WYSPECIALBubblegum11