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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.

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Original poster

Unfair? Ex wiped off his student debt before divorce

69 replies

sallysm · 25/08/2021 10:19

I'm shortly about to start divorce, and in discussion with the Ex about finances/savings, he says whilst we've been separated for a year, he's paid off his significant size student loan debt (from before our relationship/marriage), which has devoid me a share of his savings (which is almost nothing now) for upcoming financial settlement.

This hasn't impacted me so far, he has been fine with paying child maintenance and incidentals, and pays the mortgage for the home I live in (I'm not eligible be taken on for the mortgage so he deducts this payment from my total CM)

He says the reason he paid off his debt, is because with that remaining as a commitment, he will not be able to secure a mortgage for a place to live in himself, or at least, it significantly reduces the amount he can borrow. He also says that education, which he is still paying for monthly, helped get him his career, which has been funding our lives. He also says I can probably continue to live in the FMH for the next 15+ years until our child is 18, as the mortgage cost is far lower than if I rented, so long as he can continue deducting it from CM. So he says now, the priority is on him securing a place to live himself.

So how should I feel about this? Should I ask the court (if we cannot agree) for a higher percentage of equity in the FMH, to take into account that he has craftily paid off suddenly his student loan debt? Or is that the type of thing which will end up in lots of expensive arguing with solicitors, and possibly negate the a good part of the cost.

He could have waited until after divorce, and continued for a few years to pay off that debt... I think its unfair that he did it right now. I'm not sure if it counts as unfairly disposing of money though, as it was a debt that had to be repaid at somepoint. Just not right now.

What's your opinion?

OP posts:

Viviennemary · 25/08/2021 10:26

I can see why you are annoyed but it doesn't seem unfair under the circumstances you describe. And you are able to remain in the family home but he needs somewhere to live. But you should get the opinion of a lawyer and see what they say.

ShippingNews · 25/08/2021 11:58

It doesn't sound unfair to me . You get to live in the family home for the next 15 years, he is paying CM, mortgage, and other expenses so you won't be doing it tough. And in the meantime he has to find somewhere to live - I don't blame him for paying off his debts. I'd hardly call that crafty, he is just doing what anyone would do to secure some kind of future for himself.

IveGotASongThatllGetOnYNerves · 25/08/2021 12:00

Sounds sensible to clear debt. He is providing reasonably well for his child isn't he? And no student debt means a bit extra every month for him to spend on his child.

Esspee · 25/08/2021 12:06

Perfectly reasonable thing to do in my opinion.

Redglitter · 25/08/2021 12:08

Think he's been quite sensible. What he's proposing sounds fair

elaeocarpus · 25/08/2021 12:34

The debt and savings would both be taken into account anyway and cancel each other inany financial disclosure, so i think its a moot point as the net position would be the same

toobusytothink · 25/08/2021 12:39

If he had the debt, that would have been taken into account and his “net” worth would be the same. Probably sensible

toobusytothink · 25/08/2021 12:40

X post with pp

louisejxxx · 25/08/2021 12:40

I’m confused about why you’d be entitled to his savings anyway? If he’s served himself by paying his own debt off out of his own savings then I’m not sure what the problem is.

Original poster

sallysm · 25/08/2021 12:42

Thanks for your replies, its been interesting getting your opinion on it - however do note, his student loan debt existed before our relationship began.

OP posts:

zaffa · 25/08/2021 12:43

Wouldn't the debt be considered in any financial settlement anyway? Don't they minus the debt from any assets and then what remains is up for discussion?

Original poster

sallysm · 25/08/2021 12:43

His savings, accrued whilst living separately, would normally be added into the pot for sharing I understand. He should be putting them on a Form E. But I don't think he would have put his student debt on there, had he retained it.

OP posts:

ThisIsStartingToBoreMe · 25/08/2021 12:44

It sounds fair and sensible to me.

zaffa · 25/08/2021 12:45

Are you sure? When DH did his form E with his ex all debt was also listed (no student loan though, but I know there was a fair amount of credit card debt that his ex had accrued on behalf of her brother, and the lawyers still deducted that from the savings / equity in the house

HirplesWithHaggis · 25/08/2021 12:45

Going against the general flow, how is he "paying the mortgage" if he's deducting the money from your Child Maintenance? His savings should have been split between you (as should yours), not spent on a debt that doesn't affect his ability to get a mortgage. Get yourself a lawyer.

zaffa · 25/08/2021 12:45

@sallysm

So his debt was from before your relationship and the savings were after?

ispepsiokay · 25/08/2021 12:48

He's clearing a debt that allows you to stay in the FMH and provide a place where he can have his child(ren) visit.

The only downside could be that you're essentially paying the mortgage through loss of CM so make sure that the future split of the FMH reflects this as your making 15 years of contributions towards it not him (or ask to be paid the CM and put it into an account the mortgage is paid out of).

3cats4poniesandababy · 25/08/2021 12:48

Presuming you are in England the fact student loan was accrued pre-marriage is not a consideration. All are seen as a martial asset/debt when doing divorce financial settlement.

Same if he had owned a house outright pre-marriage. You would have had a claim on it at divorce as a martial asset.

girlmom21 · 25/08/2021 12:50

His debt was from before your relationship and you chose to marry him regardless, knowing he had that debt.

He's right. His education benefitted your lifestyle and presumably you'd rather he had a suitable home for your children to go to - like a mortgaged home - than have to squeeze them all into a small bed sit or something similar.

3cats4poniesandababy · 25/08/2021 12:51

And yes definitely watch out for how house will be spilt in future.

I suspect he wants to keep directly paying mortgage so you can't default on it and screw his credit score. Completely understandable but make sure that it is reflected in how the house equity will be spilt in future years.

millymollymoomoo · 25/08/2021 12:54

Still trying to claim all the assets, spousal maintenance and never work for the gif knows his many years op? While never working yourself …..

rainbowandglitter · 25/08/2021 12:57

Op you have so many posts on this and always get told the same thing.

MichelleScarn · 25/08/2021 12:59

@millymollymoomoo

Still trying to claim all the assets, spousal maintenance and never work for the gif knows his many years op? While never working yourself …..

I thought l recognised this!

Muchmorethan · 25/08/2021 13:00

I think you are in a very precarious position by relying on him to pay the mortgage.

My XH suggested the same setup and although l would technically have been better off as the mortgage payments were far greater then CM... it meant that l was financially tied to him, which l certainly didn't want.

HangingChads · 25/08/2021 13:00

You should let this go, you're getting an amazing deal, someone is paying your mortgage for you!

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