Property Problems

I am trying to work a settlement out with my wife, but we have a fairly complex situation.

There is one solution that seems to fit but I am not sure whether this could be realised.
This is the basic bones of it:-

We have four properties including the FMH. There is around £60K in the FMH and maybe £80K in the rentals (these figures are changing if you are following my other posts as we are struggling with valuations).

I have agreed to sign over the FMH to my wife, and I would like to down draw a deposit from the other 3 houses so that I can buy a house myself.

The next bit is the tricky bit. We would like to keep the properties in my name, but with an instruction / charge to pay a percentage of the equity to my wife on the sale of the houses at a later date. The rental income in between this period could then be split say 60/40 in my favour as I manage and maintain them.

However, this would only work if it did not affect any benefits claims made by my wife. We know that a clear transfer of the rental property titles would obviously prevent a benefits claim, would the same be true if only a charge or interest be registered in the property once I sold it?

Not sure if this is possible, but hoping so as it does provide a nice amicable tidy solution.

Regards

Bob

That sounds like a really bad idea to me. The whole point of divorcing is that you split your finances up. It''s probably technically possible, but you''re creating a very complex solution there. I think your wife would be very ill-advised to accept such an agreement.

Oh.. I thought it sounded like a really good idea.

It doesnt make much sense to liquidate the assets now at the bottom of the market, and by selling them my wife would loose her entitlement to any benefits.

It would make more sense to keep them so that we have some financial security later in life. The only tricky aspect is keeping them in my name, but giving my wife the security that she will recieve the equity when they are sold.

This method also provides some modest income from the rental payments.

The other solutions seem to be totally miserable in comparison, so I can''t see why this is such a bad idea..

Bob

bobbeckit wrote:

giving my wife the security that she will recieve the equity when they are sold

And what security is that exactly? When would these properties be sold? When you decide to sell them? What happens if you decide not to, or decide to move into one of them, move your new GF into another, an elderly relative into another, your cousin into another, etc? Her options for forcing a sale would be virtually non-existent. For all intents and purposes you could keep and receive the benefit of owning these properties indefinitely. She would be putting herself completely at your mercy.

I guess for you it''s quite a good solution. But if she were here asking for advice, or asked a solicitor if it''s a good idea, I''m afraid the answer would be HELL NO do not sign that.

I know nothing of benefits so its probably a question for the DWP.

Am i right in thinking you want your ex to have a charge against property, a mesher order?, and if this would effect her benefit entitlement in some way?.

Hi Dukey,

Thats exactly what I am saying.

Is it possible to come to an arrangement whereby the properties would stay in my name to allow my wife to claim benefits, but give her the security that she will benefit from 50% of the sales.

The question is how can the security be given. By second charge, tenants in common, mesher agreement or some other type of restriction. Can the property be put into a trust?

We have both agreed that selling them makes no sense, and that we would like to 50/50 the assets.

If I simply signed over the title to 2 of the properties she would not be entitled to claim any benefits and this would probably leave me paying SM every month living like a pauper, and my wife does not want me to have this sort of life.

To be honest we would be better off making our own arrangements, and leaving this whole divorce business well alone as it doesnt seem to be to of much sense / use to anyone.

It can be done yes Bob but maybe a chat with a solicitor to decide the best way would be a good idea, i would have thought a mesher type order would be the way to go, what i don`t know is that if she did have a charge on the properties would it effect her entitlement to benefits, a call to the DWP would give you the answer.