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Divorce. Selling house in the future and paying STBXH off then? is this possible?

5 replies

TBHhadEnough · 17/10/2016 19:03

Not sure if I can afford to buy him out. Could I stay here and sell in, say 5 years, and then pay him his portion? don't know if this is an option and forgot to ask solicitor.

Obv if he didn't agree then we couldn't do it. Don't want to unsettle kids more than necessary. also, don't want to stay here long term, its too big for just 3 of us.

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HereIAm20 · 17/10/2016 19:48

Yes a friend has an order that allows her to stay in her home on an interest only mortgage - to be sold when 2nd child of 4 turns 18. You need to agree whether it is a percentage of the equity now or then (ie at time if sale) and make sure it is a percentage of equity not percentage of sale price! Also make sure mortgage co will put mortgage into your name and transfer the house into your name too. Also have clauses to allow for changing the %share if you make improvements such as extensions or loft conversion.

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PippaFawcett · 17/10/2016 19:52

I actually think this is a really good option. DH relinquished a lot of equity when he split with his ex wife because she refused to sell, couldn't afford to buy him out and he didn't want to argue or uproot the children.

It meant when we met we had to start from scratch to get a deposit together for our first tiny house. In the meantime she also met someone new who moved in with her in the old four bed marital home. DH now wishes he had done exactly as you describe, I'm not sure why more people don't as it is better than throwing away £££ on solicitors in the meantime.

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TBHhadEnough · 18/10/2016 19:55

Its food for thought. There is no mortgage on the property so probably makes things easier too.

Thanks

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STIDW · 18/10/2016 21:41

You really need to ask your solicitor about all the ins & outs. It is possible for your husband to retain a share in the house in the form of a chargeback which is paid out when the youngest child reaches the age of 18 or finishes university. However that is only one option.

The starting point is to consider how everyone including your husband is to be rehoused. Depending on the particular circumstances if the house is larger than required to house the children adequately it may need to be sold to release equity so both spouses can rehouse.

You need to bear in mind rehousing later could be problematic if your share of the equity isn't large enough to buy a smaller property & you are older & are unable to take out the usual 25 year term mortgage. A chargeback is usually only appropriate when there is no other way of keeping over the heads of the children. Also there maybe are tax implications.

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TBHhadEnough · 18/10/2016 22:25

Yes I will definitely speak to solicitor. We have 2 mortgage free houses so there is no implication in rehousing but I don't think I can buy him out on my current wage. He wants the lions share of the pot.

What are the tax implications? I assume because it would not be his residence then he'd have to pay tax?