Divorce settlement - chargeback on property

blakbruker

I am in the early stages of divorce with my partner and are working on the consent order. Things are mostly amicable, there's no fault, and we are using a fixed fee service for this rather than using individual solicitors. Of course, we've ran into a stumbling block regarding money. Our family home is worth an estimated £300k, we are looking at my partner buying me out for £130k as they feel it's the maximum they can afford to mortgage for (the property is now mortgage free). We have proposed keeping savings and pensions out of the agreement and just keeping what we both have. However, disclosure has shown there is a big discrepency here and I do feel with the amount of savings my partner has the split of the house is unfair. Their response is that they can split the property 50/50 but then would need to claim child maintenance (Currently there is no plan for child maintenance as part of the settlement). If we do that I will be in a much worse position, certainly for the next 4-7 years.

I've had the idea of keeping the £130k buyout but having a charge or agreement for the "owed" £20k, payable on my partner selling the house, remarrying/cohabiting, or on reaching/taking retirement. In return I would accept forfeiting the charge if I remarried/cohabited.

My question is does this sound like something that is enforceable and also, would there be any implications with mortgages (charges on the land registry) and stamp duty? Any advice most gratefully received.

MyRealNameToo

And this is why you need your own solicitors in my opinion.

To the best of my knowledge child maintenance can only be legally excluded by a consent order for 12 months after which they would be entitled to claim it if they wish. Doesnt mean they will but it should be factored into your thinking of what's acceptable. If they fall on hard times they may have no option but to claim.

blakbruker

I'm starting to agree on your first point but the dice has been rolled now!

Thanks for that, I wasn't aware but good to know. Any thoughts on my idea for the property charge?

VyEu

Yeah you can do a transfer with charge back if you want. The charge would have the be registered. Idk if it's fair though because What's the income disparity between you (if any)? How is ex going to meet their housing needs and those of the minor children.

Also note, it's rarely just the house in the pot: you don't mention sole or joint name savings and pensions are matrimonial assets (in most cases).

ian1246

Just split the assets 50/50 - you mention disclosure has shown the pension/savings has a huge discrepancy?

I'm trying to understand:

- Your ex-partner buys you out for £130,000 (meaning effectively they keep £170,000 of the £300,000 Equity).
- Your ex-partner has a larger amount of savings / pension than you?

Effectively then, the solution would be to off-set any "owed" equity (I.e. the missing £20,000 from your 50% share of the house) against the Transfer Value of your ex-partners pension - also factoring in any entitlement you may have to a share of her / his pension.

I.e. if your pension has a Transfer Value of £200,000 and your ex-partner has a Transfer Value of £300,000, then combined you have a £500,000 Pension Transfer Value - meaning you should get £50,000 of your partner's pension - approximately 1/6 of it (16.66%) to make it equal 50/50.

However in the above example, if your ex-partner's only buying you out for £130,000 rather than £150,000 for the £300,000 House, then the missing £20,000 would be added to the amount of your ex-partners pension your getting i.e. getting £70,000 Transfer Value - 23.33% of your ex-partner's pension transferred to you as part of a pension sharing order.

With regards to Child Maintenance - what's the agreement around child-care? If its equal care - as in, 50/50 in both night AND day care (I.e. school runs, doctor appointments, sick days etc…) there is a statutory exemption to child maintenance and none would be claimable.

Otherwise, if its not 50/50 your just going to have to accept a legal requirement to pay, regardless of your ex's promises (there is nothing holding her to such a promise).

Whatever amount you end up paying, be sure to do it based on this calculator:

Calculate your child maintenance - GOV.UK

Remember to factor in your pension deductions into the figure for your income you use to work out the payment (Gross-Income minus Pension Contribution = the income the child maintenance is calculated on).