Divorce Financial Settlement queries

raaaaa

Hi,

I have now been separated from my partner for 4 years, and divorced for 2 - we were together for about 5 years altogether. We have one daughter who we have joint custody of, so there are no children issues. She has now issues Financial Settlement proceedings, and I just have a couple of queries that I would be very grateful for some advice on.

I have remained in the matrimonial home after she left to move in with new partner (her affair with him was the reason for the split), and my new partner has now moved in with me. The house is worth about £230k, with a mortgage of about £190k, plus a joint loan of approx £10k - so not loads of equity.

1) I have paid all joint bills since separation (mortgage and joint debts) which have now totaled about £40k in total due to a high mortgage. Would these payments I've made be factored into any divorce settlement?

2) My ex inherited from her father about £70k a year after separation - would this be factored into any divorce settlement (ie, would a court award her a lower settlement due to this inheritance)?

3) I've kept the most complicated query til last! When we purchased the house, my ex had received £40k as a result of obtaining power of attorney over her mother's finances - as her mother had been admitted to hospital due to early onset Alzheimers. My ex sold her mother's home (in Barbados) and the kept the £40k from the sale whilst she had her mother admitted into a care home here in the UK. Once this had been done, she had a lot of the money still left and so used this to pay £20k towards the purchase of the matrimonial home. She's now arguing that she should get this 'inherited' sum back in full from the divorce settlement, but my view is that this money wasn't actually inherited as her mother is still alive, would it be classed as a gift to the marriage? How is a family court likely to view this?

4) And also, should the above capital sum have been subject to capital gains tax, and if so, would she be at risk from HMRC for failure to declare this financial gain?

Thanks for sticking with this post despite me rambling on! Any help anyone can give in relation to any of the above 4 queries would be gratefully received.

many thanks
Stephen

DylanO

So she used her mother's money to pay for your house? And you didn't see a problem with this?

Wow. Lovely people.

raaaaa

DylanO wrote: »

So she used her mother's money to pay for your house? And you didn't see a problem with this?

Wow. Lovely people.

Obviously I cut a very long story short in my original post. Her mother was admitted into care with progressed Alzheimers, which we found out would mean that she'd need to remain in full care for the rest of her days. We also hadn't expected that her mother would be eligible for our local NHS care home due to her having a UK passport. My ex was advised by her solicitor at the time that the money was therefore hers. We used this money towards buying a home on the basis that we could re-mortgage at any time to free up the money if it was needed by her mum.

Please try not to judge me, I am just seeking some advice on the issues that I am currently trying to deal with...

DylanO

raaaaa wrote: »

Obviously I cut a very long story short in my original post. Her mother was admitted into care with progressed Alzheimers, which we found out would mean that she'd need to remain in full care for the rest of her days. We also hadn't expected that her mother would be eligible for our local NHS care home due to her having a UK passport. My ex was advised by her solicitor at the time that the money was therefore hers. We used this money towards buying a home on the basis that we could re-mortgage at any time to free up the money if it was needed by her mum.

Please try not to judge me, I am just seeking some advice on the issues that I am currently trying to deal with...

I should think that taking an elderly woman's life savings by abuse of Power of Attorney should make you very worried indeed. Quite why your former wife thinks that this is a bargaining chip, I don't know.

I would be checking with your lawyer than you can't be held responsible for your ex-wife's immoral and probably illegal actions. Then if you happen to use that as a bargaining chip against your ex, that's really none of my business.;)

NAR

1) Possibly, especially if you can prove you were clearing joint debt.
2) Yes the inheritance will be classed as part of the matrimonial finances and subject to division.
3) and 4) Not sure, it is still her mother's money and should be returned. May be tax due in Barbados, but I doubt in the UK. There may also be a issue with Deprivation of Assets in relation to the £40k and care home fees.

floss2

raaaaa wrote: »

....Her mother was admitted into care with progressed Alzheimers, which we found out would mean that she'd need to remain in full care for the rest of her days. We also hadn't expected that her mother would be eligible for our local NHS care home due to her having a UK passport. My ex was advised by her solicitor at the time that the money was therefore hers. We used this money towards buying a home on the basis that we could re-mortgage at any time to free up the money if it was needed by her mum....

So your MiL's care home fees are paid by the NHS because of her Alzheimers?

And the solicitor said it was your wife's money, despite it being her mother's house that was sold, for whom she had power of attorney? POA doesn't mean you get to keep & spend whatever money there is...it still belongs to her mother, and as such, her mother effectively owns an equivalent share to whatever percentage £20k was of the purchase price of your home.

TBH, I would go to your solicitor, lay all that on the table plus the various inheritances and your paying of the bills, and see what conclusion they come to. Don't forget, full financial disclosure means just that, nothing hidden because it was an inheritance left to only one of you.