financial issues when splitting up

Hi all

I'm in the early stages of planning to leave my wife and move out of the family home. I have a few questions I'd appreciate help with.

some of our financial affairs are in my name only - obviously our joint accounts get split down the middle.

I have approx £2.5k savings in my name only, and £4k credit card debt - again in my name only as her credit history is so bad she can't even get "bad credit" cards!! (although most of it was her spending on secondary cards) She seems to feel that the savings should be split - ie I have to give her £1250 - but that credit card debt in my name is my problem. Am I unreasonable in keeping the full £2.5k as I also get to keep the debts!

Secondly does child maintenance have to be paid directly to her in full? I'd rather pay some to her, and use some of it to directly buy items(clothing etc) my sons need, and keep their school lunch accounts topped up! - quite frankly I don't trust her financially.

Thirdly - would she have any claim on any savings I accumulate in the period between separating and moving out, and a divorce becoming final?

Mat

Comments

  • HappyMJ
    HappyMJ Posts: 21,115
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    Depending on how long you've been married and what your financial linking was adding everything up including house and pension, deducting the debts and splitting the figure down the middle may be an option.

    What you accumulate after you separate is not counted. Just make sure you've got statements to prove how much you had when you separate.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • TBagpuss
    TBagpuss Posts: 11,198
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    MadMat wrote: »
    Hi all

    I'm in the early stages of planning to leave my wife and move out of the family home. I have a few questions I'd appreciate help with.

    some of our financial affairs are in my name only - obviously our joint accounts get split down the middle.

    Joint accounts don;r necessarily get split down the middle. The overriding aim is to come up with an over all settlement which is fair, taking into account all the circumstances. Unless you are a childless couple both earning exactly the same a 50/50 is not necessarily the way to go
    I have approx £2.5k savings in my name only, and £4k credit card debt - again in my name only as her credit history is so bad she can't even get "bad credit" cards!! (although most of it was her spending on secondary cards) She seems to feel that the savings should be split - ie I have to give her £1250 - but that credit card debt in my name is my problem. Am I unreasonable in keeping the full £2.5k as I also get to keep the debts!
    Normally you would look at all of the assets, regardless of whether they are in joint names or your some names, and all of the debt (again, whether in joint or sole names) and then work out what the net assets are, and how those should be divided. It may be fair to treat some debt differently depending how and when it was built up - the issue is normally how the money was used,(i.e. who got the benefit of it) rather than whose name it is in. So if the credit card debt was built up paying for day to day family expenses and holidays then you and she both had the benefit and it is fair to treat it between yourselves as a joint liability. If it was built up paying for you to have an expensive hobby, or for nights out with your mates while she stayed home (for example - not suggesting either of those things is true of you personally), then it would be fair for you to have sole responsibility as you had the benefit of the money.
    Secondly does child maintenance have to be paid directly to her in full? I'd rather pay some to her, and use some of it to directly buy items(clothing etc) my sons need, and keep their school lunch accounts topped up! - quite frankly I don't trust her financially.
    you and she can agree on whatever you want, so there is nothing stopping you haveing an agreement that you pay some things directly. However, if you cannot agree and CMEC gets involved then no. You would have to pay the money to her and she then budgets. Bear in mind that just because money is not spent directly on the children buying things like clothes and toys does not mean it is not supporting them. They also benefit when she pays the rent, the bills and so on
    Thirdly - would she have any claim on any savings I accumulate in the period between separating and moving out, and a divorce becoming final?

    Mat

    Possibly. A court looks at the situation as it is at the time any final order is being decided, and then considers what is fair in all the circumstances.
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • WYSPECIAL
    WYSPECIAL Posts: 620
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    edited 25 October 2015 at 8:37AM
    MadMat wrote: »
    Hi all



    some of our financial affairs are in my name only - obviously our joint accounts get split down the middle.

    I have approx £2.5k savings in my name only, and £4k credit card debt - again in my name only as her credit history is so bad she can't even get "bad credit" cards!! (although most of it was her spending on secondary cards) She seems to feel that the savings should be split - ie I have to give her £1250 - but that credit card debt in my name is my problem. Am I unreasonable in keeping the full £2.5k as I also get to keep the debts!

    Joint accounts don't necessarily get split down the middle. Why not use the savings in your sole name to pay off some of the debt and take it out of the equation?
    MadMat wrote: »
    Secondly does child maintenance have to be paid directly to her in full? I'd rather pay some to her, and use some of it to directly buy items(clothing etc) my sons need, and keep their school lunch accounts topped up! - quite frankly I don't trust her financially.

    You can agree what you like but either of you can ask CMS to assess at any time.
    MadMat wrote: »
    Thirdly - would she have any claim on any savings I accumulate in the period between separating and moving out, and a divorce becoming final?

    Mat

    Yes and beyond divorce if you don't deal with the finances which are separate to the actual divorce. If you don't get a court order separating your finances she could come back many years from now to make a claim.
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