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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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Second charges

  • studentmum
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13 Oct 12 #360733 by studentmum
Topic started by studentmum
Hi
Hope some one can help ? Although divorced six years I still live in the
FMH. It''s still in joint names, but I am hoping to sell very soon. I am just waiting for the Consent Order to be completed.
The Order will say that I will receive the proceeds of the sale.

However, I have recently received letters regarding a second charge against the property, due to my ex''s £40,000 of debt.
(The biggest creditor, owed £18,000 has gone for the second charge. As yet I haven''t heard from the others)

My question is - once the Consent Order is complete stating that the proceeds are mine, can any other debts be secured against the house ?

My thinking is that they shouldn''t because in effect, the proceeds of the sale is mine, not my ex-husband ''s. Therefore, his debt can''t be secured
against my assets?

Any clarification would be great thank you

  • WYSPECIAL
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13 Oct 12 #360736 by WYSPECIAL
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I don''t know the answer but someone will but the obvious questions for me:

When were the charges secured on the property?

What does the Consent Order state? If it state that you will get the proceeds of sale then you may still be getting that it''s just the proceeds will be less than you expected. Did it state an amount or a percentage of the value?

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13 Oct 12 #360740 by studentmum
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The second charge is secured against the property because it
is still in joint names, and it is my ex''s only remaining asset. He has no
other property or assets here in UK, as he lives in USA. (I think?)

And the Consent Order will say that all proceeds from the sale, after the mortgage and this second charge are paid, will come to me.

I''m assuming that because the 2nd Charge was secured before the Consent Order is completed, this will be be paid on completion of the sale.

I just don''t want to lose any more of the equity, as I will probably need to buy a house outright. (I don''t earn enough for anything other than a very small mortgage )

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13 Oct 12 #360749 by studentmum
Reply from studentmum
The second charge is secured against the property because it
is still in joint names, and it is my ex''s only remaining asset. He has no
other property or assets here in UK, as he lives in USA. (I think?)

And the Consent Order will say that all proceeds from the sale, after the mortgage and this second charge are paid, will come to me.

I''m assuming that because the 2nd Charge was secured before the Consent Order is completed, this will be be paid on completion of the sale.

I just don''t want to lose any more of the equity, as I will probably need to buy a house outright. (I don''t earn enough for anything other than a very small mortgage )

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13 Oct 12 #360766 by QPRanger
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So you accept the second charge will come out of the equity when the house is sold but are worried that other creditors will try to add additional charges? If the property is still in joint names then I would think this is a risk.

Will the Consent Order remove your ex''s name from the house? If not, assuming selling the house will take a while, then I would guess that other creditors may be able to get additional charges on the property....

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