Soft loan

WYSPECIAL

My father has offered to lend me money so I can release my wife, from whom I am seperated, from our joint mortgage.

What steps can I take to ensure that this is not regarded as a gift or soft loan at some stage in the future if we were to divorce?

Is it posible to swear an affidavit now or get some sort of form witnessed to offer some protection?

Dave_the_Ginger_Cat

At the very least a signed witnessed agreement which includes rates for payment and interest levels. TBH, I'd recommend that you ask a divorce lawyer - they very likely have a standard format, and can ensure it will stand up through your divorce and also protect you & your father

Foggster

Can I ask why you arent actually getting a divorce?

Wouldnt it be better to see how this pans out before buying her out of the house - is there is an urgent need to do this? At the moment, she is liable for the mortgage on the property and this would probably be the best position if it leads into a divorce. Buying her out now wouldnt automatically guarantee she wouldnt be able to take a % of the equity at a later date.

Seek professional legal advice before proceeding another step.

WYSPECIAL

I'm not buying her out. The mortgage is small (probably about 5% of the house value) and I will be able to pay it off. The mortgage is the only encumberance to her being able to buy somewhere herself and since, as we are still married, that would form part of the matrimonial pot too and adequately house her would seem like a good idea.

We have never divorced as we never really had any reason to and it suits both of us as it is. We have lived apart for years and I don't anticipate divorce any time soon.

Or am I missing something? My only concern is protecting my Fathers money IF we did divorce for his sake not mine.

shocky_2

The likely legal analysis depends on whether this is a situation where there are enough assets to meet everyone's needs.

Generally speaking, the courts go through a two-stage process. First they look at how they can allocate assets to meet everyone's needs. If everyone's needs are met, the courts then look at achieving a fair split of marital assets, and there is a presumption in favour of an equal split.

If you only have modest assets, then your father's gift won't matter when the court looks at how to meet everyone's needs. If you are wealthy, then your father's gift will probably not count as a "marital asset" and so the equity in the house which has been released by the gift probably won't be taken into account when a court looks at how to achieve the split.

Whatever you do there is at least a risk that the equity released by your father's gift will be split with the wife. The size of this risk depends on whether you fit into the "modest" or "wealthy" bracket. If in doubt, try to finalise the divorce and get a consent order signed before proceeding. Best to speak to a solicitor about this one or it could come back to bite you.