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Can I ask about financial settlements?

(11 Posts)
JLbaby Sun 29-Jan-17 17:36:44

Am just wondering how the financial settlements work.

I'm in the process of separating from H, if he stays in the house (I cannot as can't afford to live here alone - big house worth a fair bit) how would he buy me out? Ie how does the process work? Does he just literally give me half of what the house is worth? I feel so naive!!

If we sell it do we split what we get from the house 50/50 (or whatever we agree) i.e. If the house is sold for 500k we get 250k each?

I'm on a small salary and live in an expensive area, my concern is I won't be able to afford a mortgage on my salary, I may have a large-ish deposit but mortgage lenders won't usually take that into account will they?

And I can't get a council house as I have a lot of 'cash in the bank' so to speak?!

So is my only option moving area? I really don't want to do that as my DD has just started school and is settled.

Am I missing a trick here?

thisusernameisnotavailable Sun 29-Jan-17 17:38:55

Firstly do you have children as that plays a big part in the financial split

ImperialBlether Sun 29-Jan-17 17:41:17

She's just said her daughter's started school!

You need to get a lawyer onto it, OP. It's not usually 50:50 if you've given up work or gone part-time etc when you've had a child. Any share is of the equity of course, not the value of the house.

ImperialBlether Sun 29-Jan-17 17:41:57

People often go for a clean break where one person gets more equity and foregoes the pension, but that will depend on what your solicitor advises.

JLbaby Sun 29-Jan-17 18:05:20

Yes we have 2 kids, 4 and 2.

JLbaby Sun 29-Jan-17 21:36:41

Anyone?

RandomMess Sun 29-Jan-17 21:41:46

The courts will want to see the DC housed so it may not be 50:50 or it may be that he doesn't get his full share until the DC are adults. He may have to pay spousal maintenance as well as CMS so you can afford accommodation.

JLbaby Sun 29-Jan-17 22:00:20

Would they take into account the fact it's expensive to live where we do or would they just expect me to go back to work full time (even then I'd have full time childcare to pay for!).

Also I'm thinking of suggesting going to mediation rather than going to court...should I just bypass that and go ahead and engage a solicitor?

Downstairspoo Sun 29-Jan-17 22:04:49

Read this. It's long but comprehensive. Commissioned by the judge in charge of the family courts. Go to a solicitor first, can mediate alongside but have the legal advice in the background to know what to negotiate for. But making this your bedtime reading is a good start

www.judiciary.gov.uk/wp-content/uploads/2016/04/fjc-financial-needs-april-16-final.pdf

thisusernameisnotavailable Sun 29-Jan-17 22:06:37

As I paid all the deposit on our house I got that back % wise on what it was. The mortgage was then deducted from the balance. Finally the remainder was divided by the judge in a 80/20 split as my Ex had no cost to house himself as other woman owned a home outright.

You will need to fill out forms regarding both your financials and discuss what you put into the marriage, be that money or time raising the children. I was better off given house price increases trying to go for a clean break which I managed as otherwise ex would be able to claim more than I could afford to pay him if he continued to have an interested in the house until children left education. For me personally it would have meant the children and myself would be homeless once the youngest was 18 as I'd never be able to raise a mortgage for what I would expect to be circa £100k by then
Seek out a good family solicitor. If you find the one you have isn't working hard enough for you change. A good one will likely cost but it's money well spent if an agreement can be swiftly agreed. Just be careful not to let it drawn out as then the only winner will be the solicitor!

garlicandsapphire Sun 29-Jan-17 22:37:19

See a lawyer before you do anything. People who go to mediation may agree to less than what they are entitled to. I know a number of people who regret what they said at the beginning in mediation and then had to row back. The ideal is that you agree to a settlement without going anywhere near the courts (unless you are multi-millionaires!. Its never worth it in terms of fees if you can possibly avoid it).

The first thing you should agree is how you wish to split the residency of the children - will it be 50/50 or will they live with you for the majority of the time and then going to their Dad at alternate weekends and a weekday? Establish that, and then think about negotiating finances as it has an influence on child maintenance. If they live with you for the majority of the time you are in principle entitled to 10 percent of his income per child.

In principle all assets are split 50/50 if it qualifies as a long marriage and if your salaries are very different you might be entitled to spousal support in addition to child maintenance.

I think the most likely result would be to sell the house so that you can both realise sufficient resources to split between you and provide homes for both of you. If your husband was to buy you out he would either need to pay you cash or raise the money from increasing the mortgage - but bear in mind, if he has sufficient cash savings to do this then those savings would still be included in the 50/50 split of assets, as well as any other property equities/shares, and the relative value of your pension pots. But most of us dont have many of those other assets - its usually house and pensions.

If you have a sizable cash pot for a deposit you might be able to get a mortgage (depending on your earnings) and many people get an interest only mortgage which is more affordable but you are usually expected to be able to demonstrate how you would buy out the remainder at the end of the mortgage. A lot of people plan to do this by selling and downsizing. Otherwise if you can't get a mortgage you would need to rent - you wouldn't qualify for council housing.

Get some legal advice asap and make sure you gather together all the paperwork you can on the mortgage, your pension etc. And broad info about your relative salaries and savings/debts.

Good luck OP!

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