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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.

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The four basic steps to reaching an agreement on divorce finances are: disclosure, getting advice, negotiating and implementing a Consent Order.

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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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Property adjustment order on house bought with a first charge loan on it

  • Cottonlady
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04 Mar 21 #515985 by Cottonlady
Topic started by Cottonlady
I bought a house before Decree Absolute. On it is a first charge loan to my parents. As soon as my ex and I agree on a settlement I will pay back the loan to them.

Application has been made to the court by ex as we cannot agree on settlement. He is asking the courts for a property adjustment order on the property bought.

what does this mean?

  • wikivorce team
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26 Mar 21 #516241 by wikivorce team
Reply from wikivorce team
The property adjustment order box is ticked on pretty much any court application where either party has a house.

It means nothing at this stage.

The position of each party (what share they are seeking of any assets) will become clear later on (usually after the First Hearing).


If you have a documented loan agreement then that part of the asset should be ringfenced as being owed to your parents.

  • hadenoughnow
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27 Mar 21 #516273 by hadenoughnow
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If e.g. a property is in joint names and the outcome of any settlement is to transfer it into one name, that is a property adjustment. Any money that is paid to buy one party out is a lump sum.
A registered charge is the same as a mortgage so the amount owed should be deducted from the value of the property to establish the net equity - which is the sum to be divided (although costs of sale may also be taken into account).
It is very sensible of your parents to have registered a charge. There can be no question that this is a proper loan. Unfortunately where loans are not properly documented they can be treated as soft loans, i.e. not intended to be repaid.

Hadenoughnow

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