Renting pending divorce.

CarrotCake111

My wife and I are divorcing, and at the point of agreeing how our marital assets will be split.  We’ve agreed in principal that I will buy her out of the marital home.  We are currently still living under the same roof in our marital home.  

My wife is looking to get out of our house and rent a flat while the divorce process plays out.  Her opinion is that the rent she incurs will be funded by the pot of marital assets until the divorce is finalised.  I’ve had legal advice that says any rent she incurs in an agreement under her own name should come out of her end of the split of the assets.

Would anyone have any thoughts or insight into this?

Savvy_Sue

Legal advice trumps opinion. Let her get her own legal advice that confirms her opinion, if she can, then you negotiate. 

CarrotCake111

She she claims to have received her own legal advice that she’s fine to have the marital assets fund her rent.

The places she’s looking at are very expensive.  And for me, surely she could use renting as a deliberate ploy to run down my half of our assets to nothing.  Surely it can’t be the case she can do that?!

AskAsk

you have had legal advice so why are you still asking on here?  your legal advice is what you should stick to.  i just looked up whether you need to live separately to get a divorce and it states you don't so if she wants to move out then she has to spend her own money.

tacpot12

How much is it going to cost for you to stay in the marital home? Is it mortgaged? Generally I would say that she should be allowed to spend the same on somewhere else to live as you are spending on your housing. Anything else wouldn't be fair.

Few divorcing couples have sufficiently liquid assets that they can be used to pay rent, so rent is usually paid from income not capital. If you earn more than she does, or vice versa, it would only be fair to plan to equalise your incomes in the period between her leaving and the divorce going through.

You should try to work with her to create a budget for yourselves after the divorce, so she can see whether the rent she wants to pay now can be sustained. Encourage her to find somewhere where the level of rent is affordable for her.  

Tigsteroonie

How would you think if the situation were reversed, OP: would you happily pay your own rent in full, whilst she remained in the family home? 

maman

Tigsteroonie said:

How would you think if the situation were reversed, OP: would you happily pay your own rent in full, whilst she remained in the family home? 

It wouldn't be unusual to pay the mortgage or at least part of it on the marital home and pay for rent elsewhere.
I'd stick with what you've been advised and get on with the financial settlement and divorce ASAP. 

CarrotCake111

tacpot12 said:

How much is it going to cost for you to stay in the marital home? Is it mortgaged? Generally I would say that she should be allowed to spend the same on somewhere else to live as you are spending on your housing. Anything else wouldn't be fair.

Few divorcing couples have sufficiently liquid assets that they can be used to pay rent, so rent is usually paid from income not capital. If you earn more than she does, or vice versa, it would only be fair to plan to equalise your incomes in the period between her leaving and the divorce going through.

You should try to work with her to create a budget for yourselves after the divorce, so she can see whether the rent she wants to pay now can be sustained. Encourage her to find somewhere where the level of rent is affordable for her.  

Mortgage is paid off on marital home, which we’ve verbally agreed I am buying her out of.  She’s looking at rents of £1,100 per month, which is the very top end of the market where we live.  Likely a 6-month agreement while this process plays out then she buys somewhere.

She and I earn the same money as each other.

tacpot12

CarrotCake111 said:

tacpot12 said:

How much is it going to cost for you to stay in the marital home? Is it mortgaged? Generally I would say that she should be allowed to spend the same on somewhere else to live as you are spending on your housing. Anything else wouldn't be fair.

Few divorcing couples have sufficiently liquid assets that they can be used to pay rent, so rent is usually paid from income not capital. If you earn more than she does, or vice versa, it would only be fair to plan to equalise your incomes in the period between her leaving and the divorce going through.

You should try to work with her to create a budget for yourselves after the divorce, so she can see whether the rent she wants to pay now can be sustained. Encourage her to find somewhere where the level of rent is affordable for her.  

Mortgage is paid off on marital home, which we’ve verbally agreed I am buying her out of.  She’s looking at rents of £1,100 per month, which is the very top end of the market where we live.  Likely a 6-month agreement while this process plays out then she buys somewhere.

She and I earn the same money as each other.

So if the mortgage is paid off, your costs of staying in the property is limited to maintenance costs on the property; allowing for the face that you will both have pay Council Tax and energy costs. Unless you are aware of a specific maintenance cost that is due in the next 12-18 months I would ignore the maintenance costs in the equation. 

So, until you are divorced, you should be paying half a reasonable rent for the area. What is reasonable depends on how posh your current house is - if your house is very smart, it is reasonable for her to want to rent somewhere equally smart. There's no reason she should have to do without a pool if you have one! Paying half also gives you a degree of leverage - if she starts to sabotage the divorce, you might accidentally forget to make a payment, which will reminder her that there disadvantages to be financially connected to someone else. 

TBagpuss

If the house is mortgage free then it is harder to justify her having to fund separate accommodation while you get to live for free in the family home.  
There is not hard and fast rule, as issues such as how much each of you earns and can afford, what savings there are etc are all relevant. If she is looking to rent somewhere which is bigger and better than the family home then it is not unreasonable for her to meet the extra cost. If she is looking to rent somewhere smaller or equivalent then it  is reasonable that the costs of doing so should be shared, whether that means that she uses joint savings or that you pay her an occupation rent  for her share of the house, and she then uses that money towards her rent elsewhere, is up to the two of you. 
If your solicitor, being fully aware of all the financial detail, is telling you that she should pay it out of her own pocket then obviously listen to them, but bear in mind that in practice that may mean that she has less money for savings or investments so an unequal share of assets over all is justified in the final settlement.
You can of course tell her that in your view, you should both remain in the house until it is transferred and she buys a new place, then no rental costs will be incurred at all, but that is not practical for a lot of couples.  Or you could offer to move ot until that happens, and be the one to pay rent. 

Kynthia

So are you going to pay rent to her as you'll be living in her share of the home with no mortgage to pay? To be fair you should give her half of the going rate for similar properties and then she can pay her own rent too. If she wants to rent somewhere cheap or expensive then that will be up to her.