Does XH have to see remortgage details?

[Finallyalmostfree]

Im not sure if I am making this more complicated than it needs to be, but overwhelmed by the paperwork/details of it all.

So mid- divorce process, we have completed mediation and agreed a financial settlement, which involves me remortgaging and paying some of the equity to him in a 70:30 split in my favour (agreed so 4 DC remain in family home and to speed the process as he will remarry as soon as divorce is finalised). As part of the documents submitted for mediation, I shared an agreement in principle from a bank. Now does that mean I have to use that mortgage company? In the couple of months since, my broker can find me a more favourable deal, and a bank that would lend me more money (needed after realising the roof needs extensive repair). Now we have agreed it all, does that just become my information- or does it need submitting to his solicitor/court. I feel we have agreed a fair split, given our history/finances, I’m not touching his pension, and he has paid nothing towards the house in years, but I’m scared if I borrow more money I’ll just need to give him more, and not be able to repair the house!

Thanks for any advice/experience

As far as I am aware you don't need to show him anything once the settlement has been reached and a figure agreed on.

Well it’s not agreed until a judge says so. You have two risks that could cause the same thing to happen.

There is a risk that he will push the point and then the agreement unravels. Because he believes you are hiding relevant information which is why he asked in the first place.

There is a risk your mortgage offer causes him to consider the agreement is unfair as you have already considered.

As long as you can explain why you are able to borrow more than was originally disclosed it should be fine. Good faith requires transparency.

When does the deal start? If it hasn’t officially come into force when you’re submitting the documents to court, do you have to disclose it?

I think that it’s your information and wouldn’t make much difference to the overall split. Divorces tend to go on and on - my mediation was 18 months ago and there’s been lots of interest rate changes etc since then but we’ve never been asked to re submit anything. When you submit your consent order it doesn’t ask you to give information such as borrowing capacity. Even if you were asked by the court as part of a question in relation to the consent order - you can just say the truth - that your broker found a better deal which has come in handy as you had to borrow more to complete major repairs at the family home. But this must occur all the time due to lenders pulling deals off the market and agreement in principals expiring before divorces are complete. Your ex could probably find a better deal now too. I would leave it as it is.

What documents do you actually submit to court? do they just see the financial
statement- or do you have to individually submit each bank statement etc. It’s all so confusing to predict what happens next.

I don’t think my ex would have an issue with it- we made an agreement on his terms. But if a judge is likely to query and delay it all, I will remortgage again in 2 years!

Look up D81 statement of information. That’s the form that gets submitted with the consent order.

This

If you had a change in circumstances then that ought to be disclosed. But I wouldn't say that better mortgage deals becoming available are a change.
And you are borrowing more because of the work needed so your position isn't really improving.

Potentially problematic only if the 70/30 deal you did was on the basis of you saying that all you could borrow was £x. But now you are able to borrow more. However, even then you are only now borrowing £y because of the roof.

So if it's the former, I wouldn't say anything. If it's the latter then I would disclose it but make the point about the roof work.

With a consent order you just submit a D81 which sets out the position as it is now, pre-settlement, and the position as it will be post-settlement. No bank statements etc.

Thank you to everybody. Now lots of researching D81 forms. I never would have realised how complex this process is!

How you get hold of the money to pay his share of the equity is irrelevant to the overall settlement surely? You've agreed to pay him x, you could be getting that by remortgaging or borrowing from family or whatever.

Anyway, couldn't you equally argue that the house is worth less because of the needed repairs to the roof anyway? If that wasn't taken into account in the valuation for splitting the equity surely it's just as relevant?