Thinking of buying wife a house and getting a legal separation

The_Maestro

Hi,

I am separating from my wife of 7 years. We have 2 wonderful children aged 5 and 1. Unfortunately its just not working and its got really bad at times - police called due to arguments etc. but I won't go into that here. We have a house worth about 160-170K with about 85K remaining on the mortgage and I have about 30K cash. My wife has about 8K cash and a flat in Moscow worth (???). My salary is about 59K and my wife has never worked in the UK.

I am thinking of buying her a house for about 60K using my 30K as deposit and then a small mortgage. Then getting a legal separation specifying that this is the agreed financial settlement.

My questions are:

1. About benefits - we live in a Universal Credit area. My wife is going to have to claim this to live because she will only be getting child maintenance from me thereafter. Do you think that the benefits agencies can start sniffing around the marital home as a possible asset for her even though we will have a legal agreement that it is not part of the settlement because I have effectively bought her out by buying her another house?

2. I've read that at the eventual divorce, the family courts would normally respect the agreement in the legal separation, but does anyone have any information about this? The last thing I want is more financial claims coming in against me in the years to come. I just want us both to get on with our lives.

There is a very small chance we may get back together I suppose after some breathing space which is the reason for the legal separation rather than getting a divorce straight away.

Arthur

elsien

It's less about the DWP and more about a financial settlement needs to be agreed by both parties. Starting with a 50/5O split of all assets on both sides including pensions when you divorce.
Is this agreement all your idea, or are you both agreed it's a fair split?

The_Maestro

elsien wrote: »

It's less about the DWP and more about a financial settlement needs to be agreed by both parties. Starting with a 50/5O split of all assets on both sides including pensions when you divorce.
Is this agreement all your idea, or are you both agreed it's a fair split?

I deliberately didn't mention pensions because I don't need information about that at the moment, but there will be a split of my pension agreed.

I am not sure exactly what my wife thinks about it but she has responded positively so far. It is in her favour if anything when you take into account her flat abroad which she said was worth 50K but now reckons is worth 10K. We are more interested in wealth preservation for the children. If she got cash for example, she would end up spending it all on rent and living expenses because over 16K and the DWP would not give her anything.

Anyway, don't worry too much about the figures. I am really just asking about the concept and how it can affect how she will be viewed as a benefits claimant, and how 'final' an agreement in the legal separation is.

mgdavid

does your wife agree with this plan?
or would she rather get a job and not be beholden to you for the rest of her life?
or maybe go back to Russia with the children?

The_Maestro

mgdavid wrote: »

does your wife agree with this plan?
or would she rather get a job and not be beholden to you for the rest of her life?
or maybe go back to Russia with the children?

Please see my previous reply about whether she agrees with it or not. I don't agree with your other points (e.g. beholden to me) and I am not sure what the other things you asked have to do with the advice I was looking for. She definitely never wanted to get a job even though we agreed that she would look for one.

NeilCr

Worth a read. Especially 1 where it says a judge will consider what has been agreed in the legal separation

https://amicable.io/legal-separation-vs-divorce-whats-difference/

Re UC. You might have to ask that question of the DWP. That could get complicated. But they will take her flat in Moscow into account.

Personally, I think you should both get legal advice to protect your positions.

ETA. What is your wife's immigration status?

https://www.citizensadvice.org.uk/benefits/coming-from-abroad-and-claiming-benefits-the-habitual-residence-test/non-eea-nationals-and-the-habitual-residence-test/are-you-subject-to-immigration-control/

Is she on a spouse visa?

https://www.gov.uk/visas-when-you-separate-or-divorce

Nodding_Donkey

You earn £60k a year and between you own two properties and you want me to pay for your wife and kids?

Unbelievable.

FBaby

Did she get British nationality? Because if she hasn't, she might not even be entitled to stay in the country once you stop supporting her.

DairyQueen

You appear to be living on a different planet from the rest of us.

- Married 7 years plus (possibly) cohabitation prior to marriage.
- 2 very young children.
- You earning 60k. Wife not working, hasn't worked for at least 7 years, has never worked in the UK.
- Marital assets = approx £113k plus flat in Moscow plus (your) pension.

A legal separation will not allow you to circumvent a financial settlement in accordance with section 25 of the Matrimonial Causes Act and case law. See here.

Nor do courts encourage parents and former spouses to evade their financial responsibilities at taxpayer expense. This will be a case of the needs of the children (first priority), and then the needs of the parties, versus each of the parties ability to pay.

Presumably your wife will be the custodial parent. Not sure where you established the notion that she 'is going to have to claim this (welfare) to live because she will only be getting child maintenance'. Given your circumstances, there is a strong possibility that she will receive term spousal support.

Given the ages and needs of your children, the chances of you retaining anything approaching 50% (or more) of your joint assets are negligible (read 'zero'). I suggest you seek legal advice so you are prepared for a financial settlement that has some relationship to reality.

Nice try but no cigar.

The_Maestro

Hi,

Thanks for your replies. To answer the question about her immigration status, she has ILR.

Regarding the other points. Yes I would need to get advice specifically about UC from an expert on that I guess. I'll make a post on the forum specifically for that.

@DairyQueen - surely the chances of us going 50/50 is purely down to what we agree, and would only be subject to case law if we end up in court because we can't agree. I fully understand that if it went down that route that the split would probably not be 50/50, but it might be 70/30 of a lesser amount due to paying solicitors and court fees etc. so that is not to anyone's advantage. Also Spousal Maintenance disadvantages both myself and herself because it is means tested pound for pound against UC. Spousal Maintenance may be in the tax payers interest, but I don't think any law is being broken if we agree to do more of a clean break.

Poor_Single_lady

So you're basically asking how You can get someone else to pay for your kids so you can keep as much of your salary as possible.
Fantastic.