Divorce , loan and affidavit of means

[hotcrossbunnys]

I wrote on the relationships board but received no responses so thought I'd try here if that's ok.
Aibu or silly to clear a 10k car loan with my savings before I declare my affidavit of means pre divorce settlement? It would halve my servings but I'd save on interest rates
. My ex does not contribute to repayments on the family car. I Took over loan and have less than two years left on it so it's a hefty 500 per month .
Wwyd? How would it impact my settlement and would I be silly to do that or would it look devious ? Thanks

You have to provide a year of bank statements and (I think) declare any large outgoings so it would probably get picked up.

In theory the savings should get netted against the loan anyway as it's the net assets they look at.

Thanks for your reply.Can I ask what you mean by savings netted against loan? Do you mean they cancel each other out ?

would the value of the car be taken into account in the settlement?
How does the cost of paying off the loan (check there are no early settlement penalties) compare to the market value to sell it second hand.
Also, does paying it off leave you with enough cash for a deposit on somewhere new to live? you may need to think about timing if your current property takes a while to sell (unless your currently renting).

You declare debts as well as assets on your form e. So it actually makes no difference. So do what suits you. The net effect is the same.

To answer
Your questions ... I don't know if the value of the car would be taken into account. Is it normally? After the loan is paid off it wouldsell currently for 25k .
I have paid the loan solely .
I would save 1.5 k by paying off early . It would halve my savings so only have 10k savings to my name . I hope
To buy him
Out of our joint home so would need to
Pay him 70k.
He isn't great to pay extra costs .

If you download the form e you can see everything you need to declare. You will need pension figures etc as well and house valuations. I got 3.

Have you appointed a solicitor? I completed form e myself but he was there for advice and drafted the consent order.

wow - expensive car!
I've not looked at the form - but if you own the car outright and keep it, it's an asset. If you technically don't own it, because it's hire purchase, you have the liability of the outstanding finance. I thought that car finance was structured so that you don;t own the car unless you purchase it at the end of the agreement.
Discuss with your solicitor, but it sounds as if the asset is worth a lot more than the cost of paying it off, so leave it as a debt until everything has gone through.

If you need the cash, you can pay it off after the settlement is finalised, sell the car and buy something cheaper as you'll have £15k to play with.

Have you asked your solicitor?

No I haven't gone into the solicitor yet . I really want to keep costs down as much as possible as I'm already using my my savings to top up living expenses for the children as he is not paying
Maintenance . Could I gift my sister money to reduce amount saved . I owe her 5k and pay her back 20'per week as it stands

If you gift it to your sister it will show up on the years bank statements you need to supply. That may raise questions as it will look like you are trying to hide money.

Ok thanks . That's what I was worried about

There is a you tube video on completing form e - that was useful to get me started.

Thanks I'll
Check that out .