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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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What should I be asking?

  • Lindsbil
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24 Aug 19 #509231 by Lindsbil
Topic started by Lindsbil
Quick background

I’m 38 stbx is 51
Together for 18 years married for nearly 13
We have a 16 year old daughter
Have two mortgages
The house we live in and one we have up for sale (potentially renting it out)

We are continuing to live together as we need to finish renovating our house and neither one of us could buy each other out (could pay the mortgage but not live!)

I am a teacher with a pension
My husband is self employed (no pension)- built his business after we were married
He has 4 other properties he rents out and is shared owner of a micro brewery

I am hugely concerned about his “creative accounting” as what he declares is not what he earns

We are in the very early stages of the separation but I want to be clear as to what I could be entitled to

  • Vigorate
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24 Aug 19 #509232 by Vigorate
Reply from Vigorate
If you post details of both of your respective incomes, house values/mortgages (all houses), savings, investments, pensions and debts someone will be able to comment.

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26 Aug 19 #509258 by Lindsbil
Reply from Lindsbil
Income
Me- £45k
Ex- £50k + (self employed- can creatively account, lots of cash I hand, only declare £30k last year but is VAT registered)

Pension
I’m a teacher- 15 years..... is it what my pension is worth now? Or what it will be worth?
Husband doesn’t have one (has 4 houses that he rents out) £350 a month return

Houses
marital home mortgage £195k equity 100k plus (nit had a valuation yet)
Old home mortgage £100k equity 35k - currently on a let to buy interest only mortgage
Husbands rentals (4)- all only have £10k deposits in (interest only let to buy mortgages, earning £350 a month each)

Debt
Two cars (one each)
Me- Loan £5700, credit card £2500

Savings
Me- none
Ex- I don’t know

We have always had separate bank accounts
A pot for joint bills- mortgage/gas etc

I have never taken money for our daughter and pay for everything she needs

  • hadenoughnow
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26 Aug 19 #509263 by hadenoughnow
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You each need a place to live where your daughter can be accommodated so a two bed property apiece.

You need to check out the likely cost of this as well as your mortgage capacity. As you are younger you will be able to take out a mortgage over a longer period.
The pension value is the value of the fund now.
The current value of the btl properties needs to be considered.

The question would be whether you could have a property apiece and whether your pension may be balanced against the btl properties and the value of his business interests.

Hadenoughnow

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26 Aug 19 #509271 by Lindsbil
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Neither of us would want to live in the rental properties- but would I be entitled to a cash equivalent?

We planned to stay in the marital home until renovations are completed but I feel that may become increasingly difficult (as he had a an affair and I need to move on!)

Do I get the house valued in its current state?

Would I be entitled to a 50:50 split? Across all assets??

If that was the case could I suggest a larger % from the marital home sale as not to intrude on his businesses?

Could I put my % in the other house in trust for my daughter removing me from the mortgage?

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26 Aug 19 #509273 by Vigorate
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The answer to all your questions is yes, but someone else can provide more details on your ability to remove yourself from the mortgage and putting your share in trust for your daughter.

Excluding pensions (i.e. his 4 houses and your teachers pension) but including your debts, the total asset pot is 126,800 so 50:50 is 63,400 each.

As stated by hadenoughnow, the question is whether this is enough for you to have a property apiece and whether your pension may be balanced against the btl properties and the value of his business interests.

More info on your pension and his business interests are needed to understand the full picture.

  • WYSPECIAL
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27 Aug 19 #509280 by WYSPECIAL
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You really need to find out the CETV of your pension. It's probably going to be the biggest asset.

It sounds as if there is about £40k equity in the BTL assuming they haven't gone up massively in value so your pension is likely to be worth far more than this.

Does the share in the micro brewery have a value or is it really just a hobby? IE is it a viable business making profits? Could he sell his share?

Looks to be £135k in property equity. How much will a two bed house in your area cost?

Once you know what your mortgage raising capacity is and how much a two bed house will cost you can start to see how much of the £135k you will each need to buy somewhere to live.

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