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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.

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.


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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.


mortgage split

  • ohhelpme
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16 Feb 08 #14152 by ohhelpme
Topic started by ohhelpme
Need a bit of help please.
Have a house worth 240 k and a mortgage of 140k.
I have been out of the house for 1 year.
I pay the mortgage since buying it 9 years ago. I have 2 kids ( luvly ) and see them about 2 days a month as live 200 miles away.
sHe now want a legal seperation as he has been awarded a very large sum after serious accident at work.
What could i expect ?
kids are 16 / 17.

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17 Feb 08 #14167 by dukey
Reply from dukey
Hello and welcome to the site can you post some more details please
how long married
are the kids in full time education
is your aim legal seperation or divorce
all are important considerations thanks, dukey

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17 Feb 08 #14172 by attilladahun
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How much is the compensation?

Compensation is a type of capital that isn't in the "POT" so to speak BUT is a resource W will have to help meet her needs eg housing etc
Also it was received "post separation".

As Dukey says need more info eg

Basic financial details to help others consider your position

H age
Net income a year
Net income a week
Should he be working O/T or can he realistically maximise his earning potential –if so what would the net income be a year
Health issues which affect ability to work?

W age
Net income a year
Should she be working O/T or can he realistically maximise his earning potential –if so what would the net income be a year
Health issues which affect ability to work?
What do you think you can raise by way of mortgage?
How much can you afford for housing a month?

State benefits?
Child Benefit
Working Tax Credits
Child Tax Credits
Other benefits state per year

W savings
H savings

Debts

W debts
H debts
of the above how much do you accept are Matrimonial debts

Any adverse credit history affecting you or H getting a mortgage/loan

Any inheritance likely;
H £ parents aged?
W £ parents aged?

Any serious likelihood of either within 5 years?

Pensions

W CETV?
H CETV?
Either in payment?

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17 Feb 08 #14210 by ohhelpme
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Hi right here we go
I take home 2000 per month and now live with someone and have a lovely baby boy.
She has been awarded 120,000 so far with more to be decided as still having mediacl issue.
She is disabled as lost a leg and needs help etc.
Gets all the normal benefits plus child benefit.
I Brought house for 80000 of her nans bank who she owed 260000 but i had to mrtgaged for 140,000.
As i paid my debts off of about 30,000 and i gave her and family about 15000 and the rest stayed in the bank as used for repaying the mortgage.
As compensation has been sorted she needs to get legal seperation now as sol has told her to. Not sure what will happen. I just want back what i paid into house will this happen.???
Can i atleast expect the mortgage to be paid off and that it ? she has no debts but i do.
I dont want to rip her off but feel as i lived there with my son for a while and helped her over accident i would get some help.

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18 Feb 08 #14232 by attilladahun
Reply from attilladahun
INCOMES (Net)

Husband 2000/24000
Wife [how much]

History

Age of H
Age of W

Any likely inheritance of H/W in future?

I Brought house for £80000 of her Nan’s bank who she owed 260000 but I had to mortgaged for 140,000.
[Can you explain I’m not sure what you mean here…]

As I paid my debts off of about £30,000
I gave her and family about £15000 and the rest stayed in the bank as used for repaying the mortgage. {Contribution argument}

As compensation has been sorted

How much has she had and what is she likely to get in the future?

She needs to get legal separation now as sol has told her to. Not sure what will happen. [OK Divorce likely …..How long have you been separated …can divorce after 2 years separation with her consent and vice versa] or either divorce now on your adultery with an unnamed person or Unreasonable behaviour.

I just want back what i paid into house will this happen?
[Don’t know till I get all facts}

Can I at least expect the mortgage to be paid off and that it?
She has no debts but I do. [How much?]

I don’t want to rip her off but feel as I lived there with my son for a while and helped her over accident I would get some help.

See below what Court has to take into account –s25 MCA 1973 factors


FMH

House £240,000
Less Mortgage £ 140,000
Less Selling costs £ 5500
say 2%.+ VAT

True Equity thus £ 94,500

I have been out of the house for 1 year.
(So if W gets to live in house and it goes up significantly after 2 years you may suffer CGT (Capital Gains Tax)

I pay the mortgage since buying it 9 years ago.
(So in essence this is effectively maintenance payments you are making!)
Need to check what CSA calculation would be as if you are paying more then you are actually paying W SM payments. Need H salary and W income including benefits to see if a SM case or not.

Children

I have 2 kids
I see them 2 days a month – now if they stay overnight that is the CSA test…2 x 12 =24 nights so you get no allowance off the standard calculation of 20% of your net income. If they stay more than 52 nights you get a one seventh deduction and more than 104 nights a year two seventh deduction.

Now I imagine your travel costs are high…it is possible if CSA is involved to seek “a departure order” to reduce the calculation in view of the high travel and/hotel costs suffered…alternatively you and your ex wife can agree informally a lower than normal child maintenance figure if you wish. The Court has no jurisdiction to make CM orders (unless school fees orders/H over £75K/or C disabled etc). So if you and she agree the Court can make a CONSENT CM order.
Remember after one year either party can if they wish go to CSA or once an assessment made the Court order lapses.

She now wants a legal separation as he has been awarded a very large sum after serious accident at work.
[Why a legal separation…religious grounds? Otherwise a waste of money as same paperwork to divorce but no divorce and ultimately if divorce have to repeat…money for solicitors! Also if a Judicial Separation Court does not consider effects of pensions as marriage is not ending!

Separation Agreements are not enforceable! If you leave things and merely separate without finances being settled within divorce –huge warning as the Court considers assets at time of divorce and financial settlement –so delay can cause a settlement to be larger…inflation or one’s pension increases –job promotion or inheritance before separation etc.

So in reality you will divorce.

In fact, the relevant principles are set out in Section 25 of the Matrimonial Causes Act 1973 :
25 Matters to which court is to have regard in deciding how to exercise its powers under ss. 23, 24 and 24A
(1)It shall be the duty of the court in deciding whether to exercise its powers under section 23, 24 , 24A or 24B] above and, if so, in what manner, to have regard to all the circumstances of the case, first consideration being given to the welfare while a minor of any child of the family who has not attained the age of eighteen.
(2)As regards the exercise of the powers of the court under section 23(1)(a), (b) or (c), 24 24A or 24B]above in relation to a party to the marriage, the court shall in particular have regard to the following matters—
(a)the income, earning capacity, property and other financial resources which each of the parties to the marriage has or is likely to have in the foreseeable future, including in the case of earning capacity any increase in that capacity which it would in the opinion of the court be reasonable to expect a party to the marriage to take steps to acquire;
(b)the financial needs, obligations and responsibilities which each of the parties to the marriage has or is likely to have in the foreseeable future; [You have new partner and baby boy]
(c)the standard of living enjoyed by the family before the breakdown of the marriage;
(d) the age of each party to the marriage and the duration of the marriage;
(e)any physical or mental disability of either of the parties to the marriage;
[Your Wife’s injury and her earning capacity to work…if impaired her compo will take into account this the Smith v Manchester element]
(f)the contributions which each of the parties has made or is likely in the foreseeable future to make to the welfare of the family, including any contribution by looking after the home or caring for the family; [You earning/Wife bringing up 2 children and sacrificing her job opportunities]
(g)the conduct of each of the parties, if that conduct is such that it would in the opinion of the court be inequitable to disregard it; [Irrelevant]
(h)in the case of proceedings for divorce or nullity of marriage, the value to each of the parties to the marriage of any benefit . . which, by reason of the dissolution or annulment of the marriage, that party will lose the chance of acquiring.
(3)As regards the exercise of the powers of the court under section 23(1)(d), (e) or (f), (2) or (4), 24 or 24A above in relation to a child of the family, the court shall in particular have regard to the following matters—
(a)the financial needs of the child;
(b)the income, earning capacity (if any), property and other financial resources of the child;
(c)any physical or mental disability of the child;
(d)the manner in which he was being and in which the parties to the marriage expected him to be educated or trained;
(e)the considerations mentioned in relation to the parties to the marriage in paragraphs (a), (b), (c) and (e) of subsection (2) above.
(4)As regards the exercise of the powers of the court under section 23(1)(d), (e) or (f), (2) or (4), 24 or 24A above against a party to a marriage in favour of a child of the family who is not the child of that party, the court shall also have regard—
(a)to whether that party assumed any responsibility for the child’s maintenance, and, if so, to the extent to which, and the basis upon which, that party assumed such responsibility and to the length of time for which that party discharged such responsibility;
(b)to whether in assuming and discharging such responsibility that party did so knowing that the child was not his or her own;
(c)to the liability of any other person to maintain the child.]

[What Pensions do you and W have}?

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