Do I have equity

sheramber

inminniesroom said:

Hi Ras I would say about  £145,000 . What has my re-marriage got to do with it I’m confused. He remained there , changed to an interest only mortgage therefore not reducing the capital and yet stands to take the full sale value , if and when he sells . 

Re-marriage trap

This also illustrates that if you re-marry without resolving financial matters by court order or an enforceable separation deed, you will be caught in what Solicitors often call, the ‘re-marriage trap’.

This trap commonly happens if someone from a divorced marriage decides to re-marry. The re-marrying person will not be able to apply for financial provision orders or a property adjustment order against their ex-spouse (although they may still be able to apply for a pension sharing orders dependent on the pension scheme).

https://wilkinssolicitors.co.uk/family-law/the-re-marriage-trap-to-avoid

Savvy_Sue

inminniesroom said:

Hi Ras I would say about  £145,000 . What has my re-marriage got to do with it I’m confused. He remained there , changed to an interest only mortgage therefore not reducing the capital and yet stands to take the full sale value , if and when he sells . 

What you may be entitled to if you sort things out at the time you divorce is different from what you'll get if you leave it until after either of you has remarried.

I'm guessing that the reasoning is that if you've remarried, you're in a stronger financial position than if you're on your own. You don't 'need' as much because you and your new spouse will support each other 

ian1246

There's much bigger issues than just the house (which you own legally 50% of, regardless of his paying the mortgage on his own. His mortgage payments are offset against what he owes you for occupational rent).

Potentially with no financial agreement either of you has a claim to any wealth the other has - including pension accruals, inherited wealth, lottery wins or even any property ownership currently (i.e. if you own a house with current husband).

It's a right mess and extremely foolish by both of you not to have sorted it before now. You need to seek legal advice and get it resolved once and for all.

I.e. how are you going to feel if in 10years time your approaching retirement and he decides to put a claim in on your pension pot?

dreaming

ian1246 said:

There's much bigger issues than just the house (which you own legally 50% of, regardless of his paying the mortgage on his own. His mortgage payments are offset against what he owes you for occupational rent).

Potentially with no financial agreement either of you has a claim to any wealth the other has - including pension accruals, inherited wealth, lottery wins or even any property ownership currently (i.e. if you own a house with current husband).

It's a right mess and extremely foolish by both of you not to have sorted it before now. You need to seek legal advice and get it resolved once and for all.

I.e. how are you going to feel if in 10years time your approaching retirement and he decides to put a claim in on your pension pot?

Or if he can't/decides not to continue paying mortgage? Or when the term expires and there is nothing in place to pay off the capital (even if it wasn't your choice)? 

ian1246

dreaming said:

ian1246 said:

There's much bigger issues than just the house (which you own legally 50% of, regardless of his paying the mortgage on his own. His mortgage payments are offset against what he owes you for occupational rent).

Potentially with no financial agreement either of you has a claim to any wealth the other has - including pension accruals, inherited wealth, lottery wins or even any property ownership currently (i.e. if you own a house with current husband).

It's a right mess and extremely foolish by both of you not to have sorted it before now. You need to seek legal advice and get it resolved once and for all.

I.e. how are you going to feel if in 10years time your approaching retirement and he decides to put a claim in on your pension pot?

Or if he can't/decides not to continue paying mortgage? Or when the term expires and there is nothing in place to pay off the capital (even if it wasn't your choice)? 

Both really valid points. Particularly if the balance becomes due and there is an outstanding amount on the property. What if any sale value doesn't cover the mortgage due to a housing crash? The mortgage company will then look for other assets belonging to the mortgagees - such as any other property owned by the individuals named (& liable) on the mortgage...

Exodi

inminniesroom said:

Hi Ras I would say about  £145,000 . What has my re-marriage got to do with it I’m confused. He remained there , changed to an interest only mortgage therefore not reducing the capital and yet stands to take the full sale value , if and when he sells . 

Well that's one way to look at it.

Another way would be that if you had done a financial order when you divorced, like what should have happened, you would have been very lucky to even get your original deposit back given the drop in house values following the 2008 financial crisis.

You seem to be feeling hard done by because house prices happened to have gone up and he stands to benefit from this (even though I'm sure many would think 'Why shouldn't he? He's the one that's been paying the mortgage!').

Out of interest, if house prices had decreased by £60k over the last 18 years (instead of increased by £60k), would you still be trying to chase him to ensure he shares the loss with you? How would you feel if he were to approach you in that situation, point out that you technically own the house jointly? Would you agree with his position, or would you maintain that it's nothing to do with you as he's the one that's been paying the mortgage and living there? 

Regardless - I actually think we've all got a bit distracted by the audacity of the situation.

Really we should be asking how the property is held - you mention you are on the mortgage, so can we infer that you are on the deeds as joint tenants? If this is the case and it was never changed, then you own the house jointly and the messy divorce situation is a bit of a red herring. You can either convince him to sell willingly, which would then require him to give you half the proceeds, or force him to sell with an order of sale through a court (and convince a judge why the house needs to be sold - no guarantees they'd agree with you).

While the equity being split I personally think would be a deeply unfair outcome, it is likely the default legal position (assuming you are on the deeds). This tale should be used as an example of why it's important to sort out financial affairs following a divorce.