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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.


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.


Advice on mortgages and housing

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16 Apr 12 #324099 by aero00
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My husband of two years are moving for divorce. Our house is worth approx £125k. We both invested £16k each for the deposit. The mortgage is worth currently just less than £90k. We bought the house in 2008 and have lived together since 2007. He is looking to move back to his parentd, as he will be much better off financially. I am wanting to keep the house, but I have no idea what I can do to do this. On our current mortgage deal I will not be able to afford everything. I am wanting to pay off £20k to my husband, which I feel is more than fair, and he accepts this. Would it be possible to remortgage to pay him off and me keep the house?

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16 Apr 12 #324122 by cookie2
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You would have to ask your mortgage company (or a new mortgage company) that question. They are the ones who have the decision whether to let you borrow more money or not. Normally you can borrow about 3.5x your income.

Why are you giving him so much of the equity of the house? There is only £35k... giving him £20k seems excessive, unless he is on a lower income than you. I am also assuming there are no kids?

Also make sure not to do anything until you have it all signed and sealed in a Consent Order.

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16 Apr 12 #324124 by aero00
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He is on a lower wage than me by about £5k a year. There are no kids. I felt that £20k was fair based on the deposit plus what we have invested into the house. We are agreeing to this amicably. What would you suggest would be a fairer amount? Is it possible for us to agree an amount between us instead of it all getting complicated in court?

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16 Apr 12 #324129 by sulkypants
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If he agrees to this it sounds possible but have you thought about the financial strain it my put on you? If you cant afford to pay the mortgage and all the bills, you could end up losing it anyway.

Maybe you could rent a room to help pay for it but what legal fees will you have to pay having the house in your name.


Questions

Have you had the house properly valued so you know the true value of it?


If the house was sold he would have to pay a part of the fees from the equity released, is he offering you a reduction the the capital he wants to cover the fees he does not have to pay?

Have you approached your/any mortgage provider to see how much money you can borrow in your sole name? You might not be able to get another mortgage for as much as you need as you dont earn enough.

Your saving him paying half the charges for an estate agent if it was sold. Property transfers costs are not cheap. Does he just wants to take his share of the equity I do think you should point out that if it were sold he would have addition costss and not gain as much money.


You dont mention children in this matter so I take it your not trying to keep a roof over their heads just your own.


I wish you well, but think you should look at drawing up some agreement with the assistance of a mediator/solicitor who can point out the costs that this will have.

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16 Apr 12 #324131 by cookie2
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aero00 wrote:

He is on a lower wage than me by about £5k a year.

Well, if he''s on £50k and you''re on £55k then I think it would be a very different matter than if he is on £10k and you on £15k......

Is it possible for us to agree an amount between us instead of it all getting complicated in court?

Absolutely yes. If you''re both happy with the figure you agree on then it''s certainly a lot less hassle and cheaper than going to court. But you still need to get it stamped by the court and made legally binding. This is very simple and cheap, £139 if done through this site.

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16 Apr 12 #324132 by sulkypants
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lol I am a slow tyonese ;)and there were a few posts beore I put up my reply but I do thinks its too much given the additional costs you will face.

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16 Apr 12 #324133 by aero00
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I never really thought about the costs that would be covered if we sold the house, as I am adamant that the house stays. Thanks for pointing that out to me.

My new partner will be contributing to the new mortgage and hopefully his name will be added.

So £16k pay off which is the deposit for the house seems fairer? I think he would be fine with that as he is getting back what he originally put in.

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