Hope I'm in the right place

fantomas

Hi there,

**I posted this in the Marriage etc. forum, but was advised I might be better off here **

This is my first post, and pretty much the first real positive action I have taken in a while, so if I get things muddled up a bit thats why.

My wife and I have recently decided to separate after 5 years of marriage. The decision was mutual and has been amicable, there was no one "tipping point", we have 2 small children who are obviously our Number 1 priority. We have a mortagage of around £116k and credit cards/overdrafts of around £15k. My wife is main cardholder on the Credit card, I am an additional cardholder. The overdrafts are on spread over 2 joint accounts we hold.

We have done some planning together, I really want my wife to be able to stay in the house for the children mainly. We were considering my wife taking over the mortgage and I take over the debts. We have had some really tough times financially recently and as such the credit card repayments are now on a managed plan as agreed. Obviously this and a number of unauthorized overdraft requests has meant our credit ratings have taken a nosedive. Perhaps not the worst thing in a way.

Really, my first question is there a way we can consolidate the overdrafts so I can run a basic account and service the interest payments and when possible make additional payments to reduce the overdraft. I am asking because I am fairly sure that I would not get a loan to consolidate them. All the accounts are under one roof. (not sure whether I am allowed to mention names)

I am glad to have found this site as now is the time to start making some major changes, sometimes painful, but necessary !!

Many Thanks
Matt

Tixy

Hi Matt

Have you already set up a new basic account? I think you will struggle to consolidate if you have poor credit ratings, but that doesn't stop you moving your current banking elsewhere and then just paying in a standing order to your old overdraft each month (and extra payments when you can).

I assume you will be divorcing as well as seperating. You need to work on making sure your finance issues are properly seperate so that you cannot be affected by each others debts/assets in the future.
Will your wife be able to get a loan in just her name for the amount of your mortgage? Does your house have any equity in it at the moment?

Obviously you'll need to close the credit card account but legally your wife would be responsible, so it may not be the best way to split up your debts if you cannot get a loan to pay this off and move it into your name.

I think you will need to speak to a solicitor to make sure your plans are feasible legally and you split as easily as possible.

fantomas

Hi Tixy

Thanks for that, I have completed the application for the basic bank account so I'm just waiting for the pack to come throughm then I'll take it into the branch to sort it out as I didn't get too far over the phone. I hadn't even thought about setting up the standing order, I assume the bank should be able to help with working out a figure to cover the interest, then I can hopefully start working on reducing the overdrafts, all be it slowly !

In terms of the mortgage my wife would not be able to get a loan at the moment to cover it due to poor credt rating I imagine. And Unfortunately there is currently no equity in the house ether. I take the point about the credit card, so perhaps we need to take a look again.

Divorce has not been discussed at this stage, and I imagine that we would have to be separated for 12 months (?) before we "qualified" so I presume that would give us time to get things as neat as possible so we can both move forward with our lives. Also, I agree that a solicitor would be a wise move, I just wanted to try and get as much sorted out between us as possible to keep costs to a minimum as I really cant afford anything extra at present.

Many Thanks for the reply, I really appreciate it.

Thanks
Matt

RAS

Hi

With respect to the house, you need to pay your wife the required amount as per the CSA and then she pays the mortgage and claims benefits for it and the kids.

If you pay the mortgage, you cannot afford to pay maintenance and she cannot claim for the mortgage.