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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:

MichelleScarn · 25/08/2021 13:01

Has his salary increased from the 40k he's been on as you've hoped to be able to claim SM?

NeverTalkToStrangers · 25/08/2021 13:02

A bit sneaky but you’re about to engage in an adversarial financial dispute - he’s playing the game within the rules.

Take legal advice on the mortgage/CM situation though.

Peacrock · 25/08/2021 13:03

Seems reasonable to be honest.

Bouledeneige · 25/08/2021 13:04

The debt and savings would cancel each other out.

What attempts are you making OP to support yourself? Seems like it's all on him.

Carboncheque · 25/08/2021 13:06

Talk to a solicitor.

Those savings would have been in the pot to be divided up in your divorce. You need to find out what the solicitor thinks the court would consider fair. It may be that what he’s proposing is fair. It may be that you’re entitled to a greater share of the equity in the house. It may be that living in the house is better for you than selling. No one here knows that!

Get a solicitor, give them all the financial information you can and see what they say. If they consider you’re being offered a fair deal you save yourself court costs. If they think that you are very likely to get more from the court, balance that against the cost of going to court and see if it’s worth it.

My solicitors fees were well worth it. They paid for themselves several times over. Having said that, I wouldn’t have gone to court if my ex had moved from the 50:50 asset split he had fixed in his head. I would’ve settled for a lot less and we’d both have saved thousands in fees.

ZoBo123 · 25/08/2021 13:06

Student loan debt (the one that is deducted monthly from salary) does not count as debt for mortgage purposes, so he didn't need to clear it to apply for a mortgage.

RoseAndRose · 25/08/2021 13:08

If he were unable to secure a new mortgage with his existing commitments (FMH) and his student loan outgoings, then getting rid of the student loan sounds like the route with least impact on you.

Because it would not be reasonable to expect him to step off the housing ladder and instead payment for 15 years or so, and intyat case he might seek the sale of the house so you can each purchase new according to your respective means. Would you prefer that?

JaggedNail · 25/08/2021 13:08

I think the debt would have been considered as part of your net joint assets anyway

Rubytoos · 25/08/2021 13:11

This is literally the first person I’ve ever heard of who gives a shit about wholly paying off their student loan.
You need to understand the ramifications of him continuing to pay the mortgage by deducting it from CM. Who owns the house, what will happen to it when DC turns 18. Who will benefit from the equity. You need to absolutely have this wrapped up to protect yourself further down the line.

Peacrock · 25/08/2021 13:13

@ZoBo123

Student loan debt (the one that is deducted monthly from salary) does not count as debt for mortgage purposes, so he didn't need to clear it to apply for a mortgage.

No it doesn't, but it does alter your take home pay and thus the amount you can borrow. If he is looking to get a mortgage by himself it could be the difference between being approved or denied. If he was denied, he'd likely have to seek selling the house and taking half which seems worse for OP.

youvegottenminuteslynn · 25/08/2021 13:15

OP since you first posted saying you would prefer to not get a job and for him to be ordered to give you spousal maintenance instead... what have you done to put in place steps to meet your own financial needs?

Because you don't seem to be understanding that you need to start standing on your own two feet. People tried to explain to you that you would need to work if you want more money and you responded to double check whether if a judge 'expects' you to work, he can 'force' you to or not.

You need to get a job if you want more money than you have without a job. Like everyone else.

You're fixating on your ex's choices at every turn to avoid taking personal responsibility and accountability for funding your life.

You're getting a very fair deal. This is real life.

Goofers · 25/08/2021 13:16

Student loan debt is not counted when applying for a mortgage. So having a large student loan would not affect him getting a mortgage.

What will affect him, however, is having your mortgage in the background. As you cannot take on the mortgage he has to pay it and this commitment will significantly affect a) the amount of money he can borrow for a second mortgage and b) the range fo lenders he can access.

YABUnfair.

MayorGoodwaysChicken · 25/08/2021 13:18

Sounds fair and sensible to me. You can’t claim a share of marital assets without also taking on Any of the marital debt. Doesn’t work that way! And he’s absolutely spot on saying that the studying that the loan paid for led to him getting his career which now pays the mortgage.

Untangling a marriage is a messy business. You don’t get to nearly draw a line under anything that existed before the marriage and say it doesn’t count because both of your situations at the time of marriage (assets, debt, education, qualifications etc) affected how things went during the marriage and what assets there are at the end of it.

If you weren’t prepared to associate yourself with his student debt in any way you shouldn’t have married him and presumably benefited from the career it paid for!

MrsPworkingmummy · 25/08/2021 13:18

It sounds like you're getting a fantastic deal to me - day to day purchases, a mortgage and CMS on top of that? Do you work? If not, get a job and provide for yourself.

SuperLoudPoppingAction · 25/08/2021 13:20

I think it counts as an outgoing in the way that child maintenance counts as an outgoing.

Almostwelsh · 25/08/2021 13:21

Irrespective of the student debt situation.

A lot of people seem to think she's getting child maintenance plus her mortgage paid. She isn't. The mortgage payment is being taken out of her child maintenance.

SuperLoudPoppingAction · 25/08/2021 13:22

Sorry - somehow cross posted with a million posters- my comment was in response to whether student loan was a debt.

I do think it unfair that he may benefit from paying mortgage if he is viewed as owning the house, in lieu of child maintenance.

Idontgiveagriffindamn · 25/08/2021 13:27

You seem determined to rinse this man for all he has whilst doing nothing to support you.
Even with what you’ve put in your OP you’re getting a good deal.
Just because you are a woman and a mother does not entitle you to a free life. I honestly can’t believe you’re back on here again

anon12345678901 · 25/08/2021 13:28

@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 it sounded familiar. OP have you decided to get a job yet and not keep expecting him to pay for you?

ImprobablePuffin · 25/08/2021 13:32

Whenever I read these threads I'm firmly in support of women getting what they rightly deserve....

But you sound so grabby. Am I right in thinking you refuse to work? But you want to try and rinse your ex for everything he has. You are getting a pretty good deal, now it's time to help yourself.

You want all the perks of the relationship, without the relationship.

BoredZelda · 25/08/2021 13:34

His savings, accrued whilst living separately, would normally be added into the pot for sharing I understand

If he needs the money to pay off a debt, that money wouldn't be considered savings. I'm not sure why you think you are entitled to money he saved since you split. Sounds like he was making a sensible financial decision.

If he had taken it from joint savings, you'd have a point, but it is his money, he can choose how to manage his finances.

MsHedgehog · 25/08/2021 13:35

Are you the poster whose STBXH is only on £40k, but you expect him to pay you child support and spousal maintenance whilst you remain unemployed and he should be expected to get by on something like £1,100 a month for rent and living expenses?

OP, you really need to get to grips with reality and accept that life hasn’t panned out how you want.

BoredZelda · 25/08/2021 13:36

Student loan debt is not counted when applying for a mortgage. So having a large student loan would not affect him getting a mortgage

Not strictly accurate. The payment you make towards your student loan can be considered an outgoing and taken into account when they decide if you can afford the monthly payments.

SeasonFinale · 25/08/2021 13:41

@ZoBo123

Student loan debt (the one that is deducted monthly from salary) does not count as debt for mortgage purposes, so he didn't need to clear it to apply for a mortgage.

It doesn't for the purpose of multiples but it actually is taken into account for the purpose of affordability. In his circumstances where he is still on another mortgage with the OP because she cannot afford for him to come off it , then the affordability aspect will very much be taken into account.

bg21 · 25/08/2021 13:43

you sound grabby

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