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Can he claim the value of the car?

(12 Posts)
IndigoInk Wed 22-Jul-20 15:04:29

STBX and I are sorting out finances.

My car is on it's last legs and I need to buy a new one.
Needs to be cheap but reliable (lots of children's activities; running backwards and forwards to uni etc.). So looking at borrowing £2-3000 (credit/my parents).

I've been told that he could claim half the value of the car, is that right? Even if I've borrowed the money to get it?

OP’s posts: |
seperatedmummy Wed 22-Jul-20 17:38:59

Lease one until the finances are sorted. A friend always does that as any problems with the car you just swap it for another one.

NotSuchASmugMarriedNow1 Wed 22-Jul-20 18:26:12

It depends. What other than assets are there

georgeandthedragon Wed 22-Jul-20 18:35:41

Yes but he will also own half the loan so I wouldn't go with your parents

IndigoInk Wed 22-Jul-20 18:39:19

I hadn't considered leasing. That might be a good idea.

Other assets:
FMH: £270K equity (£50K mortgage)
Pension (me): £40K
Pension (him): £300K
Debt (him): £20K (run up since he left)

I know the value of the car wouldn't much but it seems unfair that he could claim half its value when a) it's a necessity b) I would be essentially borrowing money just to hand it over to him.

OP’s posts: |
Truimph Mon 27-Jul-20 14:23:31

Every asset is considered. Courts divide assets based on needs rather equality. So it's not practical sell a car (unless it was a particularly valuable one) just so he's got half of it.

Does he have a car? If he does, then I don't think you've got anything to worry about. If he doesn't have a car, he could argue that he should have an extra 2,000 - 3,000 from the equity as house to buy one.

However this argument would be balanced against all the S25 factors, and in reality will not be a big factor. If all the equity is needed to rehouse you both, then that would probably be the higher priority.

In summary, buy the car because you need it, it would likely be irrelevant in court proceedings.

IndigoInk Mon 27-Jul-20 15:23:27

Thanks. I will have to get a car either way as I need it to run the children around.
He does have a car but it's worth about 50p (may be I could get him to run the children everywhere hmm).

It just seems illogical to me.

If I had £3000 savings, he could claim half the cash - fine.
If I used £3000 savings to buy a car, he could claim half the value car - fine.
If I take on £3000 debt to buy a car, he wouldn't be liable for the debt (run up after he left) but he could claim half the value of the car bought with the debt that I'm still paying off.

OP’s posts: |
IndigoInk Mon 27-Jul-20 15:26:23

Taking on debt to buy a car means there's no net increase in assets, so logically there isn't more to share out.

OP’s posts: |
Truimph Mon 27-Jul-20 16:10:30

You've over simplified it, because the car wouldn't be assessed in court in isolation from the other assets and liabilities.

However I'd say if he's already got a car his needs are met in that regard. It doesn't matter if it's valued £400 or £4,000 - the courts probably aren't going to be too worried about the valuations because they are going to be sold.

Truimph Mon 27-Jul-20 16:11:23

aren't going to be sold*

JoshLymanIsHotterThanSam Mon 27-Jul-20 18:20:55

Can you not buy a £500 banger until the settlements are finalised?

Lonecatwithkitten Mon 27-Jul-20 18:25:55

You can list loans from parents on your Form E ( I did my parents lent me the money for the divorce).

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