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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.


Is my consent order valid?

  • LinzW
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16 Jul 12 #343634 by LinzW
Topic started by LinzW
My ex and I recently reached a financial agreement without legal representation at a court hearing. He is to take both our current properties and I am getting a lump sum. However, he has now informed me the lender will not release me from the mortgage. He has agreed to and signed a Consent Order that indemnifies me of any liability for the mortgage. He is asking me to transfer the property to him now despite the fact that I will have to remain on the mortgage for the property. I do not want to be on the mortgage but not own the property. Does this make our consent order void?

I am now thinking that both of our properties should just be sold (one is in negative equity, one has about £23k equity) in order for a Clean Break. Where do I stand on this issue?

Thanks

  • dukey
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17 Jul 12 #343663 by dukey
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It does not make it void but it is something that should have been looked into before the order was drafted, its a very common problem, one spouse agrees to transfer ownership to the other in return for a lump sum only to find the bank wont take the name off the mortgage, for most it makes little if any difference, who drafted the order and did the judge agree it in court during financial proceedings?.

  • LinzW
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17 Jul 12 #343834 by LinzW
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I drafted the Consent Order and yes the judge agreed it. If it makes little difference am I still indemnified?

Thanks

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17 Jul 12 #343838 by cookie2
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I think you would need to take your Consent Order to see a solicitor. A consent order is really not the kind of thing you should be drawing up yourself, precisely because this kind of situation can arise. It will not be void, but there may be loopholes the size of Mt. Everest, and you have no come-back on anyone except yourself.

But it is quite common for the mortgage to have to stay in joint names. If he does not earn enough to borrow that amount on his own then why would the lender release him? They don''t care about your divorce, they only care about their risk. They will not lend (for example) £200k to someone who earns £20k, and no court in the land can force them to.

You''ll probably have to stick to the terms of your Consent Order even if this means remaining on the mortgage of the house.

  • Fiona
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17 Jul 12 #343839 by Fiona
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Yes, you are still indemnified. The mortgage is contract between you and the lender and the court has no authority to order you are released from the mortgage. Unfortunately the disadvantage is that your mortgage raising capability will be affected if you want to purchase another property. The problem is you had the opportunity to take legal advicebut decided not to take it.

  • LinzW
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17 Jul 12 #343890 by LinzW
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Could I not now say I want to sell our properties as he cannot take them on??

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17 Jul 12 #343891 by LinzW
Reply from LinzW
When I say I drafted it, it was done by a friend who is a family law solicitor, I just was self repping and it was me who drew it up rather than the other side. The mortgage lender will not release me because it is an interest only mortgage and my ex has no repayment vehicle in place to pay the loan bk. He is more than capable of doing this as he earns almost 5 times my salary. I thought this was all over now, obviously not! Thanks guys.

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