Financial Settlement - What would be fair?

theoretica

paigesaunt wrote: »

So after months of no contact, ex has emailed saying he doesn't want to go through solicitors and courts, but asked what I want to settle the divorce.
I'm wondering, since probate has recently been granted on his fathers estate he may think the courts would consider that as part of the pot, given there's very little in the pot in the first place.
In my position, would you initially include what he has inherited and negotiate downwards until he just agrees to pay off the charging order, which is all I really want?
Thoughts anyone..

What would you plan for when the interest only mortgage comes to an end? Don't ask for too little.

tacpot12

I think you have to try to get the most you can, if only to give you and your son a chance of keeping the house.

Your Ex could have substantial pension assets that you are not aware of, which you should try to include in any settlement. Even that pension asset he had prior to marriage are yours in some part ("With all my worldly goods, I thee endow"), so do try to get your fair share of them, or swap them for equity. While you might be able to release some of these assets (if transferred to you) when you are 55, I would think carefully about doing so. You need to be able to replace you income with pension income when you can no longer work.

If you can find the last four year's accounts from Companies house, unless he has income above £50K, I don't think you will have much success asking him for anything from his income, but anything you can get is better than nothing. Expect it to be time limited.

The calculation below shows the minimum you should be able to get from equity he has in property, I would include what he has inherited, and work down to this point:
50% of the equity in the matrimonial home = £20K
50% of the pension fund(s)
25% of each of the inherited properties = £87.5K
Swap his £20K equity in the FMH for £20K less from the inherited properties leaving Ex to pay you £67.5K.

Unfortunately this worst-case scenario will leave £120K owing on the FMH, which you will not find easy to clear on your low income. Could your son take over the mortgage? Converting it to a repayment mortgage would be a sensible change to make at any point you are able to.

chesky

Remember this is a bargaining situation. Start from the highest point you can reasonably expect. You really, really, need legal advice from a family solicitor - it may save you lots in the long run.

theoretica

The wikivorce pages have a good reputation - you might also ask for opinions there.

mgdavid

Where does the adult son and partner fit in?
Do they work and have income? Savings?

Are they paying market rent to you?
Could they pay the legal bills, or lend you the money so you can?

paigesaunt

Thank you all very much, I really appreciate your opinions.
I think if I had around £100,000 I could convert the mortgage to repayment and pay it off in 8 years by renting part of the house out to lodgers.
My son is waiting for his share of the inheritance so he can buy his own flat, unfortunately his father is the executor and says he can't have it in a lump sum because its tied up in the rental properties (of which ex and his sister take nice hefty dividends from) he's currently paid £500 per month. I don't know if that acceptable or not, I have got a copy of the will, but I heard mention that the executors are going to carry out the wishes of a later unsigned will (not sell the rentals, but give the residule beneficiarys an income) obviously the signed one was submitted for probate purposes.
All designed no doubt so I don't benefit from my sons inheritance.

mgdavid

mgdavid wrote: »

Where does the adult son and partner fit in?
Do they work and have income? Savings?

Are they paying market rent to you?
Could they pay the legal bills, or lend you the money so you can?

I'll ask again - apart from the drip-feed inheritance (which sounds all wrong anyway) did you avoid answering for a particular reason?

paigesaunt

No, sorry is wasn't intentional not to answer. They pay me a token amount, the rest they say they will give me when/if he gets his inheritance.
I agree, regarding the drip feeding.

mgdavid

somehow you really do have to manage to pay for a solicitor. You can get a free half hour so I'd make an appointment with 2 or 3 local ones and follow your gut feel on which one to use.

74jax

Sorry if I've missed this, why did he move out? Was it because he could afford to and you couldn't? Is he in another of the properties or elsewhere? Do you Both pay towards all 3 properties.

Re adult son, why isn't he and his family elsewhere, have they always lived with you. You are on a low wage to pay for 3 adults and 1 child if he only pays a token.

Re husbands inheritance, no this shouldn't come in to it.