Housing needs when actual needs aren’t affordable?

[SwallowsAmazons]

I’m starting to look at form E and financial part of divorce.

What happens when your housing needs are not actually affordable. Do I write down the actual need or what will be achievable?

The marital home was too small for the family before the split, we needed another bedroom. Obviously when we sell we will be in a similar situation and neither of us will be able to afford the extra bedroom. We will be looking at flats the same size as marital house.

Do I put housing needs as 3 bedroom even though this isn’t affordable? Or put 2 bedroom as is the current set up.

Same with listing other needs such as a new car. Do I list everything even though it won’t be possible with the pot available to share out?

I envision having to be creative with space and either divide a bedroom to give kids their own space or give kids bedrooms and use living room for me, at least the days they are with me. With a view that if I can remain on property ladder I at least have a chance of moving to a three bed in future.

A room for each of you, OP.
Any diagnosed special needs that make living close to school and your support system (GPs, specialists,etc) vital?

Forget the assumption that everyone gets to continue to be a homeowner in the same location.

Assume everyone is renting going forward (however much you hate that & commuting from somewhere).

Renting will be completely out of the question, it would be almost double mortgage costs. I don’t think either of us would pass affordability checks for renting. Even a one bed studio would be far higher than mortgage. The proceeds from sale of house would not support renting for very long at all.

Out of the question Because you live in the cheapest part of the UK already?

It’s not really feasible to uproot the children, relocate away from other parent and support system. I would imagine a prohibited steps order would be applied for pretty quickly, as I would if this was suggested to me.

As someone who’s been through divorce, I have been on the receiving end of that old chestnut: ‘Get a cheap place a million miles away from where you’ve firmly established yourself and your children’, which is very well intended and understandable, rational, and not bad advice by any means, but few people sit and think about what this plausibility means. It’s a rather traumatic choice to make, starting over again on the heels of a great traumatic ending to family life which profoundly affects everyone. Divorce is horrible for most families. And if you move to a cheaper area which could be 100 miles away, the other parent will suddenly be contending with geography wreaking havoc on their relationship with kids. It very much does leave a stain. That ex is a vital part of the child’s support system (if they’re a loving parent). Very few people would actually do this unless it became the ONLY option.
Is HA an option, OP? The wait will be forever but it might be worth exploring this option. It all sucks and it’s so difficult. I really relate to your dilemma! I’m facing it myself. Shared ownership? There are avoidable pitfalls but it might be a property ladder option. You can read about it on Reddit (those who have experience of it).

Shared ownership is a possibility but the cost of the rent plus service charge puts it on the very upper limits and might still be unaffordable for 3 beds but it is something I am looking at.

So on the form I would put for housing needs £xx amount rent or £xxx amount for purchasing 3 bed taking mortgage potential into account. Even though there is no way of meeting those needs with what is available?

Put the best you can realistically afford and explain that you’re looking at houses with 2 large bedrooms, one of which you can divide. Judges and the other side want realistic positions. If between you you I’ll have eg £200k from the sale and you have mortgage capacities propose properties with the proportion of the equity you will need plus using your affordable mortgage capacity (ie make sure you can afford the instalments, but also make sure you stretch yourself enough - the other side will have to do the same). Don’t forget stamp duty land tax and costs of purchase have to come out of that pot too, unless you have savings to pay them.

Shared ownership is awful - an assured shorthold tenancy with a capital payment, If you suddenly can’t pay the rent you risk losing it all.

Shared ownership rent and some service charges can be covered by UC - might be worth you doing some examples calculations for whether you'd have any benefit entitlement in a shared ownership property