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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

Divorce settlement paid via installments?

6 replies

Peter47 · 14/01/2021 15:20

Hi

I am currently going through a protracted divorce and we are just at the FDR after 1 year. I am representing myself as a LIP and my ex-wife has a solicitor.

I am currently living in the family home with my mother (Who owns about 50% of it as well) the other 50% belongs to my ex-wife and I. There is no mortgage and there is no realistic prospect of me getting a mortgage due to adverse credit and no employment. We really don't want to sell the home and want to stay here.

I think we aren't too far away in terms of agreeing a settlement figure, but I would like to stay in the family home and have offered to pay my ex her share in a monthly installment for 2 years. Her solicitors have rejected this stating that it would have an adverse effect on her benefits and she needs the money to pay back her legal costs, as the legal aid agency won't accept money being repaid in installments. I have had a quick look into these and believe that both these claims are incorrect and I am being misled by her solicitors. The amount of money she would be receiving wouldn't be enough to purchase a new property, so therefore it would be a lump sum of over £16,000, which would affect her benefits more than a monthly payment? and I am quite sure the legal aid agency take monthly payments, as that is how I am planning to repay them the money I owe them as well, form my legal aid (I had legal aid for the child custody, which is still ongoing)

My question is this, has anyone ever heard of a judge agreeing to allow the divorce settlement to be paid in installments, rather than forcing the sale of the home? (Which is the only asset)

OP posts:
notdaddycool · 14/01/2021 16:33

I imagine instalments would need to be agreed to by your ex for it to be approved. If she says no (not her solicitor, her) it's probably not happening. But you could suggest a big first payment then smaller ones to follow.

Boonlark · 14/01/2021 20:58

Would the lump sum be under £16k after legal costs?

I can't see a judge forcing her to accept installments over 2 years. And even if your ex said yes, you'd need to offer her more because money in the future is worth less then money now.

Also, do you have children together? And if so, who is the resident parent?

CryingHelps · 18/01/2021 19:15

I don't think anyone in their right mind would accept your proposal. Legally, she would still part own that property so it would stop her from certain benefits, certainly under UC rules. So, yes the solicitor is right.
It's an awful predicament for yourself and your poor DM - hindsight is a wonderful thing. At the end of the day, what can your Ex actually do with a monthly instalment? Nothing. What if house prices go up, her loss?
She sounds in the same boat as you, as in, she'll be claiming benefits so no spare cash. What if the situation was reversed, would you be happy with what you are proposing?

blackcurrantjam · 18/01/2021 19:21

Money is waived by UC if for a house purchase

CryingHelps · 19/01/2021 01:19

@blackcurrantjam - yes, I'll be in that situation. If when the marital home is sold, providing I put all into a new house, then fine. However, until the OP pays her every penny, she still has a financial interest in the house, still part owns it - a technicality but one which the solicitor is probably thinking of?

MotherExtraordinaire · 19/01/2021 06:54

@Peter47

Hi

I am currently going through a protracted divorce and we are just at the FDR after 1 year. I am representing myself as a LIP and my ex-wife has a solicitor.

I am currently living in the family home with my mother (Who owns about 50% of it as well) the other 50% belongs to my ex-wife and I. There is no mortgage and there is no realistic prospect of me getting a mortgage due to adverse credit and no employment. We really don't want to sell the home and want to stay here.

I think we aren't too far away in terms of agreeing a settlement figure, but I would like to stay in the family home and have offered to pay my ex her share in a monthly installment for 2 years. Her solicitors have rejected this stating that it would have an adverse effect on her benefits and she needs the money to pay back her legal costs, as the legal aid agency won't accept money being repaid in installments. I have had a quick look into these and believe that both these claims are incorrect and I am being misled by her solicitors. The amount of money she would be receiving wouldn't be enough to purchase a new property, so therefore it would be a lump sum of over £16,000, which would affect her benefits more than a monthly payment? and I am quite sure the legal aid agency take monthly payments, as that is how I am planning to repay them the money I owe them as well, form my legal aid (I had legal aid for the child custody, which is still ongoing)

My question is this, has anyone ever heard of a judge agreeing to allow the divorce settlement to be paid in installments, rather than forcing the sale of the home? (Which is the only asset)

The 16k limit would mean that she could use it as a deposit for a mortgage, including using your maintenence contribution as he income level. She'd then receive tax credits or universal credit depending on her work situation. Even if she had to have a time lag to start the claims. However, if she receives her capital in 24 lump sums this will be counted as as income, so will reduce her benefit income for probably 21 months. This is a significant disadvantage to her. In theory, with shared ownerships, she can apply to court for a forced sale. Or put a claim on to the property.

Though I understand your thought process, it's unfair on her and actually she should be able to have a clean break agreement.

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