Help with Mesher Order

justme111

I think there is a misunderstanding here. He will pay tax not on the proceedings of the house sale but on the increase of its value beyond CGT allowance if I am not mistaken which would result in far lower number to be paid to what op thinks it should be.

TBagpuss

He will be able to apply to the court to enforce the original order. If his ex is deliberately refusing to take steps toconply with the order he may be ableto claim back (some of) the costs of doing so from her.

He shoukld alos check the woding of the order. Some include provisions that the person occupying the house has to pay occupation rent or interest for periods after a trigger point is reached until the money is paid.

A solicitor's ;letter setting out what she needs to do may be the first step.

FBaby

By not disposing of it he has made a capital gain on it

We don't know that. It might very well be that the agreement was that he would be entitled to 50% of the equity up the time of the divorce but nothing afterwards if she took on the full payment, so would have had no capital gain from not disposing at the time.

It might be that the 35% is the reason for this, or it might be that the agreement is she is entitled to 100% of the equity gained after the divorce if she paid fully (and rightly so), but still only 35% of the equity of to that stage.

mgdavid

FBaby wrote: »

We don't know that. It might very well be that the agreement was that he would be entitled to 50% of the equity up the time of the divorce but nothing afterwards if she took on the full payment, so would have had no capital gain from not disposing at the time.

It might be that the 35% is the reason for this, or it might be that the agreement is she is entitled to 100% of the equity gained after the divorce if she paid fully (and rightly so), but still only 35% of the equity of to that stage.

Agree completely, which is why I asked about the Financial Order back in post 5 but the OP seems to have chosen to ignore the question. Can't be definitive without the detail.

FBaby

Indeed, you asked this question and it is essential. Out of curiosity, if indeed he could show that he hasn't contributed at all towards the mortgage in the last 9 years, is it the case that he wouldn't have to pay CGT on the equity for that period? Is it straight forward, or would he need to show the court order and evidence that he hasn't paid anything during that period?

mgdavid

that would best be a question for HMRC, I've not personally been in this situation.

Netts71

Thank you for the continuing posts.

Sorry mgdavid for failing to reply to your question sooner...

As I understand it, husband & ex split up in 2003 - divorce was finalised in 2008 (husband moved out in 2003 but continued paying 100% of mortgage plus bills during this period).
At time of divorce property was valued at £180000, outstanding mortgage of £64000.
Property was signed over to ex & mortgage was switched to interest only from this point in her sole name (as husband no longer owns property), so has been paying around £230 per month to remain in the former marital home.
Court order is simply the house is to be sold upon trigger factors (the one reached being youngest over 18 & left full time education), mortgage is to be paid off (£64000) and equity to be split on a 65/35 basis in favour of the ex (due to her having restricted career options as primary carer of the children).
We don't know what the property is worth today as ex hasn't got an estate agent around yet but similar properties in the area are selling for around £300000.

If I've missed any relevant details then please let me know & I'll try to answer!

FBaby

Are you saying that he is entitled to 35% of the full equity, even though she's the one whose paid the interest on the house for 8 years, when she was the only owner of the property during that time? That is odd, but then maybe it explains the 35/65 divide.

Netts71

I believe so... I'll try & dig out the court order tomorrow to check the wording.
Thank you!!

Braindeadmumof3

Hi
Just seen your posts.
I have a mesher order attached to me having no real choice but to stay in the ex marital home with 3 children. 2 x 5 yr olds and a 10 yr old
I was left with an unfinished extension no heating doors nothing signed off by planning a mortgage if £120k. Ex stopped paying mortgage 3 months after he left. Thank god fir rax creduts.. I couldn't of survived in tgexearly days without them.
Ex took me to court as he wanted the house sold it was in no condition to sell other than to a cash buyer and well under what it shoukd be. So anyway estate agent valued it at around the £224. At this time I was only working 13 hrs in min wage.
The judge in 1st hearing wanted me to have house and him keep his pension. Ex wouldn't agree. 2nd hearing judge came up with 65 /35 mesher order with me trying to get the mortgage in my name. It took a while as was made redundant and finally after a while I had 3 jobs and could get it in my name.
Barrister told me how it works: I will get the ££ I pay off the mortgage minus the interest and any work I have done I will get back on top off the equity so ex % works out at 15.9% of the gross.

Have to admit dreading when the time comes to sort it out:( I hate every minure of this.