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Divorce/separation

Here you'll find divorce help and support from other Mners. For legal advice, you may find Advice Now guides useful.

Original poster

Can anyone help me work out the financial bit before my head explodes?

28 replies

MotherForker · 11/12/2020 12:10

We are going to apply for a financial consent order, but only the one where we already agree. And we sort of do, its fairly amicable.

So far- I am staying n the house and remortgaging to buy him out. Unfortunately due mortgage repayment fees and a slight down valuation I can't borrow as much as I wanted. So I will owe him about £6k of equity (less than 5% value of house).

We have £6k of joint debt and we have a car which is worth £6k. Then we have £1700 of an asset that we could sell, but would be worth keeping for one of us (most likely me).

I can't get my head around how to split the debt and the car and other stuff. If I take the debt and he takes the car, will that cancel out some of it?

I know it doesn't have to be 50/50 but it needs to be as close to as possible. He is very rigid and expects 50/50 and as he doesn't want this divorce I need it to be as smooth as possible. We've both earned roughly similar amounts over our marriage when you do an average- to include maternity leave etc.

OP posts:
blanketpardon · 11/12/2020 19:13

Yes if you take the debt and he takes the car and you keep the asset then you will owe him just the £6k and £850 for the asset

Elieza · 11/12/2020 19:42

Who owns the car and asset just now? Are they 50/50 too?

When you split the house did you base it on the most recent valuation? ie if it was worth 200k before when you told him you’d buy him out is it still valued at 200k now? You should work on that most recent valuation presumably. Don’t do yourself.

missbipolar · 11/12/2020 19:44

Since there kids involved he should be forgoing any of the house, that's for his kids not you. Also with the car if he takes it then that leave the children without a car which means the car should also sit with you.
The asset and debt halfed. When there's kids involved 50/50 doesn't really apply

Elieza · 11/12/2020 19:45

Who wants to keep the car?

Got2beglue · 11/12/2020 19:46

@missbipolar

Since there kids involved he should be forgoing any of the house, that's for his kids not you. Also with the car if he takes it then that leave the children without a car which means the car should also sit with you. The asset and debt halfed. When there's kids involved 50/50 doesn't really apply
She hasn't said how the kids will be splitting their time. It could be 50/50
Got2beglue · 11/12/2020 19:49

@blanketpardon

Yes if you take the debt and he takes the car and you keep the asset then you will owe him just the £6k and £850 for the asset
How have you worked this out? Assuming the debt car are current 50/50, if she takes on his half of the debt she'll be giving him 3k. If she also gives him her half of the car that's another 3k. How could she still owe 6k after taking on his share of the debt and giving him her share of the car?
Got2beglue · 11/12/2020 19:50

Debt and car*

Ohhgreat · 11/12/2020 19:50

You haven't mentioned any pensions?

Billericaydicky · 11/12/2020 20:00

So you owe him 6,000 for the house equity, 850 for his half of 1700 asset if you have it, whoever has the car owes the other person 3,000, whoever takes over the debt is owed 3000 by the other partner.
So if you take over the asset, car and debt, with the 6,000 equity you owe your husband 6,850.

blanketpardon · 11/12/2020 20:18

@Got2beglue because OP says that she will still owe him £6k equity

blanketpardon · 11/12/2020 20:21

Assuming the car is then his
If OP keeps it she owes him another £3k but that is not clear

Got2beglue · 11/12/2020 20:21

If you give him your 3k share of the car and take on his 3k share of the debt this will cover the 6k you owe him from the equity. Then whoever keeps the asset owes the other 850

Got2beglue · 11/12/2020 20:34

[quote blanketpardon]@Got2beglue because OP says that she will still owe him £6k equity[/quote]
She currently owes the 6k from the house.

They also have a joint debt of 6k. If the OP takes on the whole debt, she will be taking on his 3k share of the debt, giving him 3k. This 3k can be taken off the 6k house debt.

She now owes 3k.

They own a car worth 6k. If she gives him the car, she is giving him her 3k share of the car. This cancels out the remaining 3k from the house debt.

And then whoever keeps the 1700 asset pays the other £850 for their share.

Purplewithred · 11/12/2020 20:38

Really need to know the value of the house (new downgraded value) to do this

missanony · 11/12/2020 20:45

I think it matters how much equity is in the house as that’s the asset there.

You need to write down a list of all assets and debts and who owns them and balance them.

Don’t forget value of pension schemes. Anything final salary especially will have a big value.

Debt (£6k)
Car 6k
Asset £1700

£850 each remaining

blanketpardon · 11/12/2020 20:57

@Got2beglue yes l, we are saying the same thing

Got2beglue · 11/12/2020 21:12

[quote blanketpardon]@Got2beglue yes l, we are saying the same thing[/quote]
No, your first post said.

'Yes if you take the debt and he takes the car and you keep the asset then you will owe him just the £6k and £850 for the asset'

If she takes the debt and gives him the car she will no longer owe the 6k. Just the 850 for the other asset if she's keeping that.

blanketpardon · 11/12/2020 22:03

@Got2beglue The £6k she owes him from the equity is what I am talking about there

It is in the OP - OP owes £6k of equity plus the car and loan and assets situation

£6k of equity as stated
£850 of asset split assuming he takes the car

Which is £6,850

blanketpardon · 11/12/2020 22:17

@Got2beglue

If you give him your 3k share of the car and take on his 3k share of the debt this will cover the 6k you owe him from the equity. Then whoever keeps the asset owes the other 850
This is what I disagree with as it doesn't give the OP an asset of £6k it just cancels each other out

At least OP is vindicated in her confusion

BooFuckingHoo2 · 11/12/2020 22:34

You keep everything, he takes the debt and you owe him £18.5k. He pays off the debt and has 12.5k to start over

blanketpardon · 11/12/2020 22:36

@Got2beglue I see what you are saying now!

If OP doesn't pay off the debt then that will be used to cover the equity
So OP will still owe the debt but will owe nothing to her husband as she can use it in lieu of the equity

I concede, had not thought of it like that

Sorry for derailing OP

mummmy2017 · 11/12/2020 22:45

So you said maternity, so there are children.
Are you going for child support, or are the children older?
Were you a stay at home mum? Is his pension worth more than yours? As pension can be worth more than a house.

Original poster
MotherForker · 12/12/2020 09:07

The house is valued at £240k. The equity is 59k. He cannot afford to buy me out or take over the current house, so that isn't an option (I'd happily let him).

Childcare will be 50/50, so he needs somewhere for the dc too and close by.

We aren't touching each others pensions, as they are going to be roughly similar. We've always wanted similar amounts (I earn more now, but not by much). I had 2 maternity leaves and 2/3 periods of part time, but he had 2 years in a job with no pension, so it evens out.

Sorting out the equity is the most important as he will not move out until he has a house. And I need him gone.

The car is owned 50/50 as it is our family car, we only have one. The debt is equally joint as it was used for household/family stuff. The asset same.

He is upset because there is a house he wants and had an offer on, but under current circumstances he can no longer afford. He feels like he is getting a bad deal- mainly because he doesn't want to divorce, doesn't want to have to move and isn't getting exactly what he wants.

If I had the money I would pay him to go away, I just want him out of my life.

OP posts:
Original poster
MotherForker · 12/12/2020 09:08

The dc are 11 and 8. There will be no CMS, because 50/50.

OP posts:
mummmy2017 · 12/12/2020 14:57

Then it sounds like letting him have the car and taking the debt is your best way for a clean split.