Overpaying a mortgage in a tenuous marriage

400ixl

One of the things you need to consider is that if you come to some settlement with your wife, you can do that. However, if you do not go through the court and get a financial settlement order, at any time in the future she could come back an claim more.

If for example you did a settlement which did not include 50% of your pension, she could come after that later.

Your example of putting money into savings so you have something that looks to have value to split is fine, however, she will still be entitled to 50% of the equity in the house (including your original deposit) so at the end of the day it does not really make any difference.

Simple answer is to do it all fairly with both of you getting proper advice and then take it to the court for the settlement order.

You have to consider (from both sides):
Assets including the house
Pensions (Company and Private)
Savings & Investments

You can trade one against the other, so more cash to her but no pension transfer, or cash vs property value but at the end of the day its going to end up being around 50% of everything.

Divorce is not cheap and never will be (as your father found out). Much cheaper to work on the relationship and not get divorced.

homerjimpson

400ixl said:

Divorce is not cheap and never will be (as your father found out). Much cheaper to work on the relationship and not get divorced.

This is the problem, I think in a lot of ways both my wife and I would be happier if we just split everything 50/50 and went our separate ways (we don't have kids) - she might do better out of it financially, but I'd do better out of it emotionally - which I realise is far beyond the scope of this forum. 

It did indeed cost my dad dearly, but it was worth it, and I'm sure he would agree. My parents' relationship was not salvageable. These days my father is happy and healthy, without financial problems. My mum, on the other hand, died many years ago, and most of her problems were self-inflicted I'm sorry to say. 

Scorpio33

If you put £1k in paying off the mortgage, all other things being equal, that would mean £500 to you, £500 to her in divorce.

If you put £1k into savings, that would still be £500 to you, £500 to her.

You would still have £500 in both situations, but in one situation it would be in a savings account, the other the £500 would be in equity in the house.

The only things that matter are:

If you are to get divorced, how would you get this money to pay her? If you have less mortgage, a re-mortgage may be possible, which depends on your income and the cost would be the mortgage rate at the time. If you keep the money in savings, the money is available there readily.

Ignoring the divorce, the thing to look it is what interest rate you get in savings vs what you would save by paying off the mortgage. ie: which would be a better play financially. There is no point in putting into savings if you get say, 2% interest, if you can avoid paying 4% a year on your mortgage.