Advice on ownership of house after separation please

Poppy38

My Husband and I have been married nearly 14 years, he bought the house not long before we met and we just never bothered putting my name on the mortgage. We've now separated and will divorce at some point. I'm worried about the security of the house, we have children together and he's moved out. So he has suggested getting a family member to pay the mortgage off, putting the house into trust for the children with the condition that I stay there with the children until they want to sell it. This way I know I am secure and he will not be able to sell the house, and he is satisfied knowing that if I ever remarry, the new husband wouldn't have a claim on the house if things go wrong.
Firstly, is this possible and can he do this without my say so as I'm not on the mortgage? There is the worry of me coming away from this marriage with no assets or settlement whatsoever, or is the offer of the trust and me living there mortgage free until the children decide to sell it reasonable? Many thanks.

Mojisola

Poppy38 wrote: »

My Husband and I have been married nearly 14 years, he bought the house not long before we met and we just never bothered putting my name on the mortgage.

There is the worry of me coming away from this marriage with no assets or settlement whatsoever

After such a long marriage, the financial arrangements would probably start at a 50/50 split - savings, house, pensions.

As you will be the parent with care, you may end up with a larger percentage.

There's lots of information on http://www.wikivorce.com/divorce/

TBagpuss

Step one: If you have not already done so, register your Matrimonial Hom Righs against the property (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/545433/HR1.pdf)

Step 2: you and he will ned to cme to a settlement about all of the finances - not just the house, but also any savings, investments, pensions etc which either of you have. They, and the house, are all classes as 'Matrimonial assets' meaning that you both have a claim on them - it is of much less relevance whose name they are curently in.

It would be legall possible to ut the hosue in trust but it isvery unlikely to be in your best intersts, as it would leave you with no capital and in a position where you an be forced out of your home when the children reach adulthood, with no capital available at at time to use as a deposit.

It's likely that a more appropriate way forward will be one of the following:

- Tranfer the hosue to you (if you can get a mortgage in your own name) either with you paying him for his share now, or with him having a charge over the property payable when the youngest child leaves home, for his share. His share would bned to be worked out or agreed but would be likely to be up to 50% of the current equity - could be less when all the factorsincluding your respective neds, incomes and earnign capacity etc are taken into accout.

- House put into joint names on the basis that you are entitled to remain there with the childrne until the younger child leaves school (or you remarry or cohabit) and on the basis that at that poin the hosue will be sold and the proceeds divided. Again, the % you each get at that time would ned to be set now, with the staring poin being 50% each.

- House sold now, you buy a new property in your name with a mortgage, he does the same. This would of course be on the basis that the net proceeds of sale were divided (start point being 50% each but adjusted to take into account what you eached would need to be able to rehouse, and to conside rother factors such as earning and mortgage capcity)

It would be possible for the hosue to remain in his sole bname, with a decalration of trust setting out your interest in it, but it is likely to be better for both of you for it to be transferred either to your name or joint names, as that will make it easier for you to build up a credit record and history, making it more likely that you will be ableto get a mortgage in your sole name in due course, and from his perspective it is less risky and also may reduce his CGT exposure long term.

if you have not already done so, so to see a solicitor. This is too big a decison for you to make it ithout getting proper, professional advice.