Pay debts with divorce settlement?

farmeress

Hi all, I'm looking for advice regarding my debts, which I have avoided since August 2013...
I'm not 100% sure of exact figures, but I owe approximately:
£7000 to barclaycard
£4000 natwest overdraft
£1600 Barclays overdraft
£420 tesco mobile
£350 next
Total - £13370
The debt came about over the last 3 years through divorce, losing my home as ex wouldn't leave, and basically a real cr*p time. Last year I was struggling to survive and was close to a breakdown, so decided to move to Spain to live with my partner who has a home here and supports us both. I have no income and have zero chance of finding work here.
My creditors do not have an address for me, so I have been a coward and buried my head in the sand.
However, my ex husband has now moved his girlfriend into the marital home and we have agreed he will pay me 25k.
I would appreciate anyone's advice as to what will be my best plan of action... I am not sure if I will return to the uk, but don't want to burn my bridges.. I have no home in the uk and would have to rent if I did return... I'm just lost,... In my position what would u do?

RAS

You need a proper financial settlement which takes into account all debts and assets of the marriage. £25K may or may not be adequate and without a finacial settlement you are open to problems down the line.

For example

If you are currently on either the mortgage or the deeds your ex-partner's capacity to pay the mortgage will affect your credit rating. If he decided to stop paying (or had to stop paying) and the house is repossessed, the mortgage provider can come to you for any deficit whether or not you are living there.

Likewise if he gets run over by a bus tomorrow and you are joint tenants, you get the whole house as the surviving tenant.

So you need to sort this out properly and that means taking proper advice from a UK based lawyer.

farmeress

When we split 3 years ago, I had no debts and finances as far as I knew we're sorted, the only tie we had was the marital home, which is why I'm receiving 25k, equity is over 100k, but he can't raise the extra mortgage... So to try and rectify my financial situation I decided to accept the 25k. This will remove me from land registry and mortgage... His solicitor is doing paperwork... I simply can't afford one... And I've agreed to pay half of his solicitors fees... I think I'm being a push over on this account, but the last 3 years has taken its toll and I just want to draw a line under it.

Thrugelmir

farmeress wrote: »

When we split 3 years ago, I had no debts and finances as far as I knew we're sorted, the only tie we had was the marital home, which is why I'm receiving 25k, equity is over 100k, but he can't raise the extra mortgage... So to try and rectify my financial situation I decided to accept the 25k. This will remove me from land registry and mortgage... His solicitor is doing paperwork... I simply can't afford one... And I've agreed to pay half of his solicitors fees... I think I'm being a push over on this account, but the last 3 years has taken its toll and I just want to draw a line under it.

Don't accept the offer. Sit tight. Force them to raise it. Without your signature they are stuck. You own 50% of the property.

If you do accept the offer. Then clear your debts. As it will lift the cloud hanging over you and enable yo to move on.

RAS

farmeress wrote: »

When we split 3 years ago, I had no debts and finances as far as I knew we're sorted, the only tie we had was the marital home, which is why I'm receiving 25k, equity is over 100k, but he can't raise the extra mortgage... So to try and rectify my financial situation I decided to accept the 25k. This will remove me from land registry and mortgage... His solicitor is doing paperwork... I simply can't afford one... And I've agreed to pay half of his solicitors fees... I think I'm being a push over on this account, but the last 3 years has taken its toll and I just want to draw a line under it.

I suggest 25K now and a charge against the property so that when he sells you get the rest of the equity?

National_Debtline

Hi farmeress

I can't advise on what sort of divorce settlement you should haggle for, but I would say that you should not let the UK debts be the main factor shaping your decisions. You need to focus on obtaining the fairest divorce settlement possible from your perspective. Only once that is done should you then give more thought to how you deal with those UK debts.

The likelihood is that those debts are currently mothballed, as the creditors haven't heard or seen you in nearly a year. With any luck they will not still be gathering interest, either. They won't pose any immediate danger, and when you are ready to make settlement offers to them, chances are they will be happy to listen because any return will be an improvement on what they are getting right now.

Remember that you are very welcome to contact our service via email or webchat as a means of getting more detailed free advice from overseas.

Best wishes

Dennis
Twitter: @natdebtline

runforlife

farmeress wrote: »

but he can't raise the extra mortgage... And I've agreed to pay half of his solicitors fees...

I understand how the last three years will have taken its toll but how do you know he can't afford to give you more equity? This is why you need a solicitors advice, albeit that is expensive. However without one I do feel you will not get the best offer.

Seek out a solicitor and get a free initial appointment and then you may find there are options to pay your legal bills by deferment.

I suggest he is taking you for a ride asking you to pay for part of his solicitors fees. My debts are primarily through divorce and legal fees but the settlement has given me a good financial future. Please consider seeking advice from a professional.

Good luck