Divorce - splitting value of family home

Coconut01

Hi,

I'm approaching 2 years since splitting up with my wife, everything is amicable and we are starting divorce proceedings. We have a house in joint names which my wife is currently paying 100% of the monthly payments - and has since I moved out.

We have children together - youngest is 5 - and the current proposal is for my wife to remain in the house until the youngest child leaves full time education, and i will get a % of the house's value from when we split.

My ex wife can't afford to buy out my share and I think would struggle to get a mortgage in order to buy somewhere new. I don't want to remain on the mortgage as this prevents me from buying elsewhere and leaves me liable for the mortgage on my old house.

To complete the story, the house i'm living in is owned by my ex in-laws and they would like to sell in the next couple of years, I've suggested that i buy it and use my share of my old house as part of the payment but they weren't interested.

I have an appointment to see a solicitor next week but wondered what options are available to me so i can be prepared when i see her.

Thanks for reading and any advice is appreciated.

elsien

I'm not sure you can take the house in isolation in that way as it's only one of the marital assets.
There are other factors to consider, depending on how long you've been married for - savings, pensions, child maintenance, how often each of you has the children for. That tends to all get thrown into the mix at some point when trying to be fair to all parties.
Also, have you looked into whether the mortgage company will allow your name to come off the mortgage? This might be an issue if your wife is unlikely to get a mortgage on her own.

hazyjo

Either:


Someone (maybe a new partner) wants to move into your old house and apply for a mortgage (they can't just take over yours).


Or the house gets sold now and you each buy somewhere.


Or she carries on paying (with or without your contribution) until the children leave full time education - but you will remain on the mortgage until she can afford (if ever) to buy you out (ie take on the whole mortgage).


I can't see any other options, sorry! I think you may find you're going to be renting...


Jx

pinkshoes

darryl681 wrote: »

My ex wife can't afford to buy out my share and I think would struggle to get a mortgage in order to buy somewhere new. I don't want to remain on the mortgage as this prevents me from buying elsewhere and leaves me liable for the mortgage on my old house.


Thanks for reading and any advice is appreciated.

As a father you have a responsibity to keep a roof over your children's head.

If you want off the mortgage, then your only option is to sell the house if she cannot afford to buy you out.

How many kids have you got? How much would it cost for your ex to rent a house big enough for her and the kids? If this would be more than paying the mortgage, then this is obviously not going to be an attractive option to her. She needs to be able to afford to live and feed them.

If you gave up your share in the house, would she be able to buy you out?

Are you paying the standard child maintenance or more?

Are you suggesting your ex inlaws could buy you out of the house and help her get a mortgage, then you could use the money to buy the house you are living in that belongs to them?

TBagpuss

Would she be likely to be able to get a mortgage for the amount of the current mortgage?
If so, one option would be for the house to be transferred into her sole name, she gets you released from the mortgage (by getting a new mortgage in her sole name for the amount of the existing mortgage, ether with the existing lender, or a different one)
You can then have a legal charge over the property for a fixed % of its value, payable on a set trigger point such as the youngest child leaving school, or her remarrying.

Some lenders will take into account child support in considering mortgage capacity, and the existing lender may be willing to agree to transfer the mortgage into her sole name if they are satisfied that she can genuinely afford it.

You will of course need to take into account all the financial factors -value of all assets, including pensions, both of your incomes and both your income needs.

jamiehelsinki

I'm in the same situation at the moment OP. It's awkward but you can't put your life on hold for 10 years.

Coconut01

Hi,

Thanks for the replies.

We were married 8 years when we split. we have no savings or investments. We have 3 children together (9, 7 and 5) and I pay £300 a month in maintenance. I have a pension , we're hoping to do it amicably and we've only discussed splitting the house.

The house is worth £190k and the outstanding mortgage is £85k. I'm not sure how much my ex would be able to borrow, she works part time in a school.

yes, I was thinking that i'd buy where i'm living off my in-laws and they could help my ex with the mortgage. that way it's a clean break for my ex and she doesn't have to worry about selling the house later on, my in-laws sell the house they want to sell and i get off the mortgage.

I'll talk to a mortgage broker and see if I could get a 2nd mortgage.

Mojisola

darryl681 wrote: »

We were married 8 years when we split. we have no savings or investments. We have 3 children together (9, 7 and 5) and I pay £300 a month in maintenance. I have a pension , we're hoping to do it amicably and we've only discussed splitting the house.

The value of the pension should be taken into account when assessing the split of assets.

If you (plural) don't make a formal agreement, one of you could come back in the future and ask for more money.

justme111

darryl681 wrote: »

Hi,

Thanks for the replies.

We were married 8 years when we split. we have no savings or investments. We have 3 children together (9, 7 and 5) and I pay £300 a month in maintenance. I have a pension , we're hoping to do it amicably and we've only discussed splitting the house.

The house is worth £190k and the outstanding mortgage is £85k. I'm not sure how much my ex would be able to borrow, she works part time in a school.

yes, I was thinking that i'd buy where i'm living off my in-laws and they could help my ex with the mortgage. that way it's a clean break for my ex and she doesn't have to worry about selling the house later on, my in-laws sell the house they want to sell and i get off the mortgage.

I'll talk to a mortgage broker and see if I could get a 2nd mortgage.

So would not checking how much your ex can borrow be crucial for further plans? If she could remortgage on her name only with you having solicitor registered deal that after the youngest is 18 she either pays you whatever percentage agreed of present equity or the house is sold and you get that money from the proceeds of sale that could be the only realistic way I think. I understand why in laws do not want to get involved to the extent you describe. Good luck in staying amicable , this issue may be a real testing point as your interests are different now.

Coconut01

I'll ask her how much she could borrow.

Coconut01

Hi,

My ex has done a few online mortgage calculators and spoken to our current mortgage provider - who she has been paying by herself for the last 2 years - and she isn't able to borrow anything. Not sure why paying for 2 years means she can't afford it but there you go.

I've arranged to see a broker to see if i can get a 2nd mortgage, or maybe i could buy her out and rent it back to her