Mortgage and/or Child Maintenance

PaulBrian

Hi

I parted from my wife 2 years ago and since that time I have always (every month on the dot) paid sufficient out of my income to cover the mortgage on the family home, where my ex and two children still live. In all I have paid an average of £1100/month (representing 40-45% of my net income) into the ex's household to cover the mortgage and/or assist with child maintenance though this has always been an informal agreement between us.

Recently the mortgage on the matrimonial home was renegotiated and luck-of-all-luck the sudden drop in interest rates has yielded a £300 reduction in the mortgage. For once I find myself with some financial breathing space. Until ...

The ex knows that the mortgage has dropped by £300 and wants me to pay that saving directly to her! I'm not aware that her cost of living has suddenly risen ... indeed she now has a permanent teaching job so her net income is healthy enough right now.

My question is ... whilst I am keen to stay legal by paying child maintenance (£99/week or £429/month according to the CSA's own website) where does the mortgage payment of £435 sit with this? Do I have to pay both or is my commitment limited to the Child Maintenance of £429. The matrimonial home is jointly-owned by me and the ex ... should she pay half of the mortgage if I agree to pay the full child maintenance. I guess if I'm honest I'd be happy enough to pay half of the mortgage and the full child maintenance. But where, legally, do you think I stand?

Any thoughts and advice will be very welcome!

Caz3121

does your wife claim benefits?
do you have plans for divorce and sorting out the finances?
I would suggest you offer to pay the CSA rate and half the mortgage. The worst that can happen is that she could go to the CSA who can assess at the CSA rate but no-one can 'force' you to pay the mortgage unless she maybe starts divorce and claims maintenance pending suit.

PaulBrian

Hi Caz

Firstly thanks for taking the time and trouble to help/advise a complete stranger!

Yes I'm pretty sure she disclosed benefits income (arond £10k/annum) on her Form E in addition to her earned income.

Both sides' solicitors have Form E assessments to consider, and of course the matrimonial home is the single largest asset that has to be considered in the upcoming settlement decision.

The Ex has threatened to go to the CSA in the hope that they will get me to pay child maintenance in addition to the monthly mortgage.

She jointly owns the house so it's perhaps reasonable to expect her to pay half the mortgage?

Clearly she is being very opportunistic in trying to gain 100% of the cash benefit I am currently enjoying, and that's not playing fair?

Caz3121

CSA can only get you to pay the maintenance.....anything to do with mortgage or spousal maintenance (money for her) would need to be sorted through court.
There are a few different thoughts about the mortgage payments (not saying which I agree with...)
. She has the full use of the property and you have your own living expenses so she should pay the mortgage
. You are both jointly liable so if you don't pay and she only pays half then they could chase you for the arrears and affect your credit rating

Have there been discussions re what will happen to the house on divorce? does she intend to take over the mortgage or will you have to stay in it...how old are the children?
Assuming she is working part time then it sounds like the benefits are tax credits and child benefit so she will have this and the maintenance before she gets her wages.
If you normally pay half each and the mortgage has gone down £300 - I assume you will be saving £150 each

PaulBrian

Caz ... Thanks for staying on the case!

1. The ex lives in the matrimonial home 100% with the children
2. I pay 100% of the mortgage
3. We are both jointly liable on the mortgage
4. I am in rented accommodation and have all my own living expenses to bear also
5. The current plan is for the matrimonial home to be sold and the ex and children will relocate/downsize
6. The residual net equity released from the sale will be subject to legal stuff and agreement before distribution
7. Children are 8yo and 5yo

kelloggs36

Your legal responsibility is the child maintenance amount - which should cover the housing costs of the children, ie she should be paying the mortgage out of it. Why not just reduce the payments as per your £300 per month saving and point out to her that she is no worse off than she was before - she gets a free house, plus her wages/tax credits PLUS your maintenance - she is an extremely lucky woman!!!!

kelloggs36

Of course you are still liable for the mortgage, but she is equally liable, meaning that if she wants to remain in the house without it getting repossessed, she will have to live with what you are offering!

PaulBrian

Sound advice ... I think she's certainly luckier than some but I bet she doesn't see it at all like that!

cher1977

Oh how i wish my ex husband was this nice. He basically left me to pay All of the mortgage on my own with two kids one being younger than 5. Your wife seriously has it good.
thank the lord that 2 years later i am now in receipt of help with the interest part but for nearly two years i was paying all the mortgage out of my benefit money and living off air ( which thankgod come free)

PaulBrian

Cher ... have you considered converting your mortgage to interest-only terms? As a short-term strategy it can free up some of your income BUT of course the capital outstanding on the mortgage remains fixed.

I so wish I could forward your message to my Ex!!!!

cher1977

yes i changed it over to interest only when he stopped paying a penny towards the mortgage..... but thanks for your advice if i did'nt know that it would have been such a help.
The story is that he is a white south african, came over, i married cos i was in love with him. Then two years later i re-mortgaged, gave him 20.000 for debts.
Then when he got his in-definate stay we broke up. Basically im staying in the house with our 4 year old son and another child from a previous relationship.
The devorce has been a nightmare, he wanted 12 more thousand out of the property but with help from a solicitor we have got that down to 8% bearing in mind he dont help with mortgage but does give me maintenance for son.
the way i see it, life is seriously un fair but at the end of the day its the good ones that get the most bad luck ie; you and me and probably many many others.