DIY separation(3 Posts)
Hi, I'm a long time lurker but have name changed for various reasons. Need some advice re the process around separating. My H and I have been together for 17 years, married for 4 with two DD, 3 and 10 months. We are separating (his choice) but it is amicable and both committed to shared care/co parenting. There are no trust issues re finances etc. Neither of us feel the need to use solicitors and have looked into mediation but it is so expensive and although as I'm on maternity leave it would be subsidised will still struggle to pay. Also we don't disagree on anything so don't really feel the need for mediation. However although there is no conflict we don't really know what we are doing. We agree that as we will bring up the children equally we won't have maintenance paid either way. Presumably we could each claim CB for one child, don't think we are entitled to any other benefits. Joint debts, i.e. credit cards we will continue to pay off together on a 50/50 basis as even though they are in individual names they were accrued jointly. Our main query is about property. We have two houses, one rented out which we want to retain and one that I will remain in with the DD's when I have them. He doesn't want any equity (even though I think he should have some) but wishes to be released from mortgage so he can get his own mortgage. We don't know how this works? Will the mortgage company then make me re mortgage? We both have poor credit ratings so this is a concern. Also, even if he doesn't have any equity now because I can't afford it how do we work out what he is entitled to at this point for me to 'owe' him? Sorry for all the questions, wondering if anyone can recommend a book/website to give us some guidance?
the divorce is straight forward and you can do it yourself quite easily however with regards finances you will need to see a solicitor as a Consent Order needs to be lodged at court to finalise financial matters.
re mortgage - you will have to ask the mortgage company to release H and they will look at your financial situation, ie whether they think you can meet the payments,
re rented house - who gets the income? what happens to that property/equity in the property at a future date?
courts prefer a clean break situation whereever possible, that there is no finances between you once the divorce is finalised. however, with properties etc charges can be placed on the property so that when a property is sold you can get a percentage or set amount of the equity.also any future mortgage you or H applies for will take into account your liability for the mortgage on the rented house.
debts - the court cannot order one person to pay another person's debt so if. so if you have£1000 on a credit card H does not legally have to pay towards it. it will, however, be included in the overall calculation of your assets.
if you want to minimise a solicitors involvement draw up an assets schedule.
this is a table listing you Assets, H's assets and those assets in joint names, then include debts in yours, H's and joint names.
deduct the debts from the assets and this will give you figures what each is worth and as a couple. (have evidence of your figures, ie bank statements etc) and each take a copy to a solicitor to discuss the best possible settlement. this will save a solicitor writing to request it and then putting together their own assets schedule
Having recently been through myself with more than one property. You are going to need some advice maybe even from an accountant depending on how long you have had the second property as there maybe capital gains tax payable on the transfer of the asset value of the second property if it has had a rise in value since you bought it.
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