Divorced, no formal Financial Agreement & want to re-mortgage

wamballa

Hi
So I've divorced from my wife last year. It was kind of amicable. But I used an online divorce company and have no legal Financial Agreement. Here's a quick summary:

• My ex and I have a joint ownership & mortgage on a property where she and my kids live today
• I pay the mortgage & property maintenance 
• I pay child support ( 3 kids 19, 17, 13 )
• I pay for my life insurance with money going to her if I die
• In my will if I die my ex inherits my assets - to distribute to the kids
• There is equity in this property
• My ex has agreed that if I want to release equity from the property to buy my own place, she is ok with that
• My new partner has a couple of properties both with equity in them
• I also don't want to leave my ex feeling likes she's financially stranded, want her to have a good quality of life ( she works full time looking after the kids )

So I now want to buy a property with my new partner, using my share of the equity & my partners equity.  I see my options are:

1. Don't change anything - if I buy a new property using my equity, my ex will be on the deeds and mortgage for new property. New partner won't go for this. However it will mean that when I die this new property can be distributed cleanly to my kids
2. Financial Agreement - now the dust has settled after the divorce, get a solicitor to create a financial agreement. Maybe this takes my ex off the deeds/mortgage so that I can use my equity and buy a new place with my wife to be
3. Release equity for home improvements but use for mortgage deposit - desperate and dodgy / not possible

At this point in time I think these are my only options. I hadn't realised until talking to a financial advisor that if I remortgage my family home, my ex will be on the deeds for a new property.

Any help and thoughts much appreciated.
Steve

AnotherJoe

Lot going on there and hopefully it doesn't happen but I don't understand this bit" In my will if I die my ex inherits my assets - to distribute to the kids". 

Either the kids inherit or she does. (Or both I suppose). But if you leave the money to her (which is what "she inherits" means ) then the kids may or may not get something. She might marry and it all end up with new hubby. Or spend it. 

You said your ex was happy for you to take equity out of existing house. But that cuts across any financial arrangement you might make. Is she in a position to buy you out? I'm guessing not. Could you wait until two eldest have left home in 3 or 4 years then sell up split the equity what ever way is agreed and then ex buys smaller place? 

Thrugelmir

First port of call needs to be a family solicitor. The financial consent order, i.e. the division of assets, needs to be agreed between you and your ex. Unlikely that your ex will be removed from the mortgage. As it is currently your younger childrens home. Their welfare takes priority. At the moment you are in no mans land. 

blue_max_3

2. Get a financial agreement like you should have done from the start. This is just a ticking time bomb. 

AnotherJoe

wamballa said:

I hadn't realised until talking to a financial advisor that if I remortgage my family home, my ex will be on the deeds for a new property.

I don't understand that. If you remortgage your current  family home to take some equity out, that does not at all mean your ex will be on deeds fora new house you bought with your new partner. The two are seperate transactions. 

Whether it's possible to do it is a different point and if done it needs to be part of a final financial settlement. Personally I think yiur ex woudl be very naive to agree to removal of equity anyway, until it's clearly defined who gets what from current house and when - often that would be when youngest is 18. 

It also depends upon how much equity and price of property , eg does it allow you to sell the house and her buy a smaller property and you get enough for a house deposit or not? And  What's the plan when the kids are well over 18? Do you intend to keep paying the mortgage indefinitely?
you must get a propEr financial split arranged. And expect that may well have some timing in it that means you cannot access the equity for several years. 

Sistergold

Just some humble opinion. If you divorced your wife last year and already making plans to buy with new partner mmm I think you are now making your financial future very complicated. Take a few years to cool off from the divorce, don’t tie yourself in with new person infact all you have written here should be a good excuse to new partner as to why you can not buy together for now. Life is already complicated as it is. Off topic I know.