Overpayers beware!!!

Bil2 · 7 June 2006 at 2:32PM

I was happily making regular lump sum overpayments to my mortgage with the intention on paying off the mortgage in about 5 years time.

However, just this week, I found out that even though I'm the sole owner of my property, if my husband and I were to divorce, he would be able to make a claim on 50% of the property, including my overpayments! My husband only pays half towards to the basic monthly mortgage payments, his name is not on the mortgage or on the mortgage deed.

My warning to you all is this.

(1) If you are the sole owner of a property and if you are married, be aware that half of any overpayments that you make can be claimed along with half of the equity of the property if you were to divorce
(2) If you jointly own a 50/50 share of the property with your partner, be aware that if you have made more overpayments, if you were to split-up, half your overpayments could be claimed as equity by your partner

My advice is- if you are married or jointly own a property, ensure that your overpayments are equal. If they are not, then make sure that you get a 'Tenants in Common' agreement before you make any overpayments.

Bil2

Thefunkygibbons · 7 June 2006 at 2:38PM

Not worried about this

what's hers is her

and what's mine is hers too

gingerdad · 7 June 2006 at 2:50PM

I thought marriage was for life, i think maybe you should divorice now and save the trouble, as making statements like above show you don' love him.

Everything in my marriage is ours, we both earn it and spend it.

michael19_2 · 7 June 2006 at 3:00PM

Totally agree..

Its the same as Hollywood stars with pre-nups....

Why bother getting married if you think your gonna split up...

Although Im sure all the divorced people didnt think that would be how things would end up.

We have a joint bank account and all money comes and goes from it. It usually comes from me and goes to her........

Bil2 · 7 June 2006 at 3:04PM

gingerdad wrote:

I thought marriage was for life, i think maybe you should divorice now and save the trouble, as making statements like above show you don' love him.

Everything in my marriage is ours, we both earn it and spend it.

In response to a similar post on the 'mortgages and endowments' board, this was my reply:

I've saved hard over the past few years (even taking on a weekend job on top of my full-time job) to save a for a deposit, regular overpayments and furniture/decoration for the apartment. While I'm happy to share my 'wealth' with my husband (who isn't particularly careful with his money and doesn't save very much) while we are together- if he were to up and leave me, I wouldn't exactly be overjoyed if he were to take my hard earned cash with him!

violetb_2 · 7 June 2006 at 6:30PM

Unfortunately, some of us marry for life only to find our partners did not have the same intentions and are left high and dry as a result. It's worth knowing where you stand in all things financial in a marriage so both parties feel secure.

kev801 · 7 June 2006 at 7:26PM

gingerdad wrote:

I thought marriage was for life, i think maybe you should divorice now and save the trouble, as making statements like above show you don' love him.

Everything in my marriage is ours, we both earn it and spend it.

I totally agree why do some people get married. In marriage you share everything that includes money, the happy times and the sad times. My wife is not that good with money, so what I love her and I don’t even think oh no I have paid more bills or more towards the mortgage than her. When you get married you become one together and who cares who earns the most or spends the most. I just wish more people took marriage for what it should be to death do us part.

halloweenqueen_2 · 7 June 2006 at 7:28PM

It makes sense to think about what could happen I suppose there are lots of people who have been married for years then the other half has upped and left and they are left potless. In my case Mr HQ has put in far more than me and the overpayments are a recent thing, so i have a way to go!!
there may be reasons that Bil2 has for finding out her legal situation, but good of her to point out legal implications for people, for instance poor old madandsad is having problems with claims on her property and as far as I'm aware she wasn't married to her man. It doesn't hurt to be clued up and I really hope I don't ever need to use the knowledge.

jonnydoe · 7 June 2006 at 11:13PM

It's a bit different nowadays as the "predominant male bread winner" is fast disappearing. Couples are far more financially independent nowadays, a good or a bad thing? Time will tell...

jamesd · 7 June 2006 at 11:49PM

Bil2, sounds as though you're discovering what men have long had to accept. Perhaps you'll join campaigns for more balanced treatment and also explain to your women friends that their husbands are only being prudent when they seek a tenants in common agreement from them?

Debt_Free_Chick · 8 June 2006 at 9:14AM

But just remember the sting in the tail with a Tenants in Common agreement. Unless each party has other assets, then the house will usually be sold on the death of one party as the deceased's share needs to go to the executor to be distributed in accordance with the will.

Imagine ... your husband/wife dies .... and then you have to sell the house to pay out their share of it!

Of course, there are ways around this e.g. the survivor raises a mortgage to pay out the other party's share. Or they have assets to buy the share. Or life assurance on eachother's lives.

And a TiC agreement is pretty pointless if the will simply gives the money back to the surviving partner!

Do we know for sure that a TiC agreement cannot be disputed on divorce? Will the Courts honour it, as I understand that pre-nups are not generally recognised in the English Courts (with one or two rare exceptions)?

Overpayers beware!!!

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