Need help with likely settlement please

sosad1968

Still mulling over splitting from dh. Don't want to go into reasons. What I really need is help with practicalities!

I have no idea what is seen as a fair settlement. I certainly don't want to fleece dh, but do want an outcome which keeps me and 2 kids safe.

We own a house worth about £250k, with about £50k mortgage still on it. I was thinking of the following: Pay off the o/s mortgage with our £50k savings. This leaves no savings left for either of us. He earns well (about £2700 net per month) so can afford to rent or start mortgage on a new property. I earn about £450 per month net. I keep the house and make no claim on his pension.

I imagine I would qualify for tax credits ( no idea how much though) and though I might be able to manage on that and my pay? Would I also be entitled to maintenance or would that be unreasonable given the fact that I will walk away with all our equity / assets?

I would appreciate people's opinions. Please be kind though...
T. x

DUTR

sosad1968 wrote: »

Still mulling over splitting from dh. Don't want to go into reasons. What I really need is help with practicalities!

I have no idea what is seen as a fair settlement. I certainly don't want to fleece dh, but do want an outcome which keeps me and 2 kids safe.

We own a house worth about £250k, with about £50k mortgage still on it. I was thinking of the following: Pay off the o/s mortgage with our £50k savings. This leaves no savings left for either of us. He earns well (about £2700 net per month) so can afford to rent or start mortgage on a new property. I earn about £450 per month net. I keep the house and make no claim on his pension.

I imagine I would qualify for tax credits ( no idea how much though) and though I might be able to manage on that and my pay? Would I also be entitled to maintenance or would that be unreasonable given the fact that I will walk away with all our equity / assets?

I would appreciate people's opinions. Please be kind though...
T. x

He would have basic needs too, if you moved out,the authorities would find you a safe place to live, in efect he would have £125k tied up in the house, plus contribute 20% net pay for the children, so you both need to seek professional advice on a positive resolve, chances are you will come out better off, things often start off well until a new partner arrives on the scene

sosad1968

DUTR wrote: »

He would have basic needs too, if you moved out,the authorities would find you a safe place to live, in efect he would have £125k tied up in the house, plus contribute 20% net pay for the children, so you both need to seek professional advice on a positive resolve, chances are you will come out better off, things often start off well until a new partner arrives on the scene

Are you saying that, in law, he would have to have half the house? I was hoping to keep the house but offset this against his future earnings (much more than mine) and his pension.

DUTR

sosad1968 wrote: »

Are you saying that, in law, he would have to have half the house? I was hoping to keep the house but offset this against his future earnings (much more than mine) and his pension.

Thankfully I have never been married to divorce, but a lawyer will confirm, the general mood though is the family home belongs to both of you, who's name is on the deeds?
You cannot expect him to live in a cardboard box for the following years, the system is tilted in the female favour more often than not, perhaps the house will split 60/40 to you

sosad1968

DUTR wrote: »

Thankfully I have never been married to divorce, but a lawyer will confirm, the general mood though is the family home belongs to both of you, who's name is on the deeds?
You cannot expect him to live in a cardboard box for the following years, the system is tilted in the female favour more often than not, perhaps the house will split 60/40 to you

I certainly don't want him to "live in a cardboard box"!!!!. I made it clear on my original post that I do not want to fleece him.

Were I to keep the house, he would have his future earnings and his pension pot.

Does anyone else have any views on whether this is fair, legal, reasonable?

NickyBat

I was always under the impression that as children were involved, you would be allowed to stay in the house and he would pay you maintenance - certinly until the children were 16 or 18, although i have to say i'm no expert.

Mojisola

I would be wary of spending all your savings. You don't know what the next few years will bring and spending all your emergency funds isn't wise. Your OH will also need some lump sums for deposits, etc.

Get some advice about giving up the pension. Don't underestimate how valuable that could be to you.

FBaby

So you think you should be entitled to 100% of the house which from what you are saying it seems he has contributed significantly more than you have towards the mortgage, so in essence, makes you rich of an investment of £250K whilst he gets nothing, purely on the basis that you believe he can earn more than you? Firstly, why is he earning more, is it because he works full-time whilst you work part-time? If so, on this principle, he could cut his hours by half and ask to have the kids half of the time and then it would be fair that he gets half of the house? If you upped your hours to full-time, wouldn't be you potential earning much closer to what his are?

What I think is fair is that the house is split 50/50 with either the sale of the house that would allow you to have enough of a deposit to put on another house for which you will each be responsible to pay for, and for him to pay csa monthly to allow for his contribution towards the children costs.

Gillyx

It would really depend on his earning potential and how much his pension is worth. I have known of situations where the wife has kept the house and the husband has kept his pension but the house in question is nowhere near £250,000, maybe not even half of that.

Who has contributed the most financially towards the house? He would be entitled to something from it, more than likely to be able to set up home elsewhere, and you would be required to take a mortgage for the amount that still needed paying. If you then couldn't afford the payments, the house would need to be sold and split accordingly.

Unless of course your husband would be fine with the arrangement you are proposing? If that's the case, nothing to worry about really.

Maintenance and the house are 2 separate things completely, you will always be entitled to maintenance, equalling about 15-20% of his pay.

zzzLazyDaisy

Whatever the agreement, he will still have to pay maintenance for the children. Go to the CSA website for the formula. If you know his wages, you will be able to work out what he will pay you for the children. If you are entitled to any means tested benefits maintenance is ignored (eg council tax benefit, child tax credits, working tax credits). If you go to the turn2us website, you will be able to work out what you will be entitled to on your wage alone.

After divorce you have no claim on his future earnings or pension. You are working and this would be taken into account, so if you get any spousal maintenance it will probably only be for a short time, if at all.

As far as the house is concerned - I think you are being very optimistic to think that you will be able to keep all your joint savings and the house.

In divorce the courts start at 50/50 and then make adjustments for each party's needs. He will need to buy a house with sufficient space for the children to stay over, and he will need a deposit to do that, he will also have less net income as he will be paying maintenance to you for the children.

Is it possible for you to take over the mortgage on your wage (plus tax credits if appropriate) so that he has the savings to use as a deposit on a new place?

As far as the pension is concerned, the value would be professionally assessed as it is today and you would be entitled to half of that (with adjustments being made for any pension you might have). He may have a pension value which results in your share being £125k but even then he cannot be forced to do the deal you are suggesting, his only legal obligation is to comply with the pension splitting laws, which will give you a pension when you retire.

You really need to seek legal advice, and you may have to accept that you need to be more realistic if you are going to settle this amicably without going to court.

DVardysShadow

sosad1968 wrote: »

I certainly don't want him to "live in a cardboard box"!!!!. I made it clear on my original post that I do not want to fleece him.

Were I to keep the house, he would have his future earnings and his pension pot.

Does anyone else have any views on whether this is fair, legal, reasonable?

Hmm. I can see that his future earnings should contribute to keeping the children until they reach an age. But as I see it, you should only be able to dip into his pension pot for pension accumulated while you were together and you should not be expecting a claim on his future earnings for yourself. You are cutting him adrift [no doubt for valid reasons] and his future earnings are his for the future without you which you have determined for him.

Unless you can actually argue that your reduced income now is as a result of sacrifices you made in the past for either the sake of the partnership or for him. But you really do need to have an argument for that, you should not assume it.

A fairer solution is for the house to be kept on until the kids have flown, then to be sold, proceeds to be shared.