Maintenance instead of equity?

[TheEndofIt]

Going through a nasty separation (in Scotland saw law slightly different).

I want to sell the family home as properties here (Edinburgh) go for at least 10-20% over home report valuation, which will give me about an extra 20-40K.

Ex wants to buy me out at home report value & instead pay child maintenance (around £525 pcm) which will increase my mortgage capacity by 20k ish.

I'd rather have the increased equity.

Any thoughts?

How old are the children?

DS is 12 & DD is 8.

You need the equity because there’s no guarantee he’ll keep up the maintenance.

Well £525 per month is £6,300 per annum so given the ages of your children it seems you will be better off in the long term taking the maintenance.

Doesn’t he need to pay maintenance regardless? Or is this an enhanced rate you are discussing? Either way I wouldn’t trade interest in the family home for a promise of money in future. If it doesn’t appear you’ll have limited options whereas it’s easier to secure a fair payment now for a fixed asset.

Do the maths then. Work out what you'll get in maintenance versus what you'd get in equity but as a PP said, maintenance not always guaranteed.

Thanks - it will mean a pattern of 1 mid-week night, EOW & 50% of school holidays.

So he's effectively choosing staying in a 4-bed house alone over seeing his kids.

I just feel sad he's prioritising that.

Doesn't he have to pay maintenance anyway?

He's had some mental health issues in the past, involving long (3-6m) periods without pay & multiple redundancies, so I'd prefer the equity.

However, I've been advised by my solicitor that if I refuse a buy-out at home report value, then a court would see me as unreasonable & I'd be liable to pay his (plus my own costs of 25-30K each) if I tried to force sale through the courts.

He won't allow me to relocate elsewhere cheaper with DC & I do a very niche role where there are very few roles.

I'm struggling to buy locally & this is his solution.

I've always been the primary carer working part time.

He's said that he wanted 50-50 care or maybe a tiny bit less eg 60-40 in my favour.

This suggestion gives him 35% care.

He is a high earner - 60K - so maintenance is high.

How will he pay maintenance if he loses his job again or is off sick?

@RandomMess - that's my worry.

But if he won't sell the house, or agree for me to relocate then I'm stuck as I'm struggling to buy locally.

Is there any way you can buy him out instead (can family help?) then immediately sell?

Unfortunately not @lassof - I'd need a mortgage of 13x salary - which of course won't happen.

I wasn't allowed to use child maintenance or child benefit as part of my mortgage capacity as the term of my mortgage went beyond when my children would turn 18 (and I would no longer receive CM or CB), so it's unlikely that it would extend your mortgage capacity anyway.

He sounds like he could be flakey with the maintenance ie going on the sick or going part time, which would reduce the sum. It would also be problematic - possibly - if he gained new (step)children in future? Not sure what Scottish law says about that.

I agree with you. I tend to think that a bird in the hand is worth two in the bush. But your solicitor may disagree and their view is what counts tbh.

The sum of "maintenance" he suggests is not particularly generous. It may be less that the CSA would assess. If the amount is in addition to what he has to pay under CSA, then the offer is generous = provided of course that he actually pays it. If you agree to it I would suggest that you have it as part of a legally binding agreement stipulating that it is to be that amount or such greater amount as the CSA assess,from time to time;that it remains payable by him, or if he dies from his estate, until such time as the children reach 18 or leave full time education,whichever is later. Interest should be payable on any amount paid late. From what you say about his checkered employment history, frankly, I'd want a security ( charge) over the house to back up the agreement.

What is law, can he not be forced to sell?

I guess I would fight for as high equity as you can so he has to sell as the property so you will get more?

Honestly I would want a clean break and there is a reason why the courts favour that approach.

@ItsDinah - it's the CMS minimum amount and would go in to a Minute if Agreement- along with the child contact pattern.

Thanks for the advice about charge over the house - I'll ask my solicitor about that.

@RandomMess - he would be forced to sell - but I would have to incur his and my court costs as I would have refused a sale at home report value - so I wouldn't be better off going to court.

We have a different legal system here, where very few cases go to court - it's all done through solicitors & a minute of agreement is reached between the 2 parties.

But he's obliged to pay you the CMS minimum anyway, so he wants to agree to pay something he should already be paying in exchange for not selling the house? That doesn't sound right at all

He's being unreasonable and delusional.

Do marital assets also get split such as pensions?

Child maintenance has no bearing on divorce settlements in with Scotland or England, spousal maintenance however can be in lieu of equity however this is only if both parties agree. Whilst your solicitor is correct that you cannot block a buy out, he would need to be able to buy you out at the time of the divorce not over many years. Child maintenance would be payable on top of any agreed spousal maintenance.

@PrincessPaws - he would want to do 50-50 so in his view he wouldn't want be paying maintenance.

@RandomMess - all other assets have been considered at this point.

It just doesn't leave me enough to buy locally as my hours are part/time, there are no jobs here & he won't allow me to relocate to be full-time elsewhere.

How far away would you have to relocate to buy? What would the courts view be on that? Would the DC actually want 50:50?