Financial Arrangement

[SingleMam]

Hi,

I'm getting divorced. We have a 6 month old daughter and a joint mortgage for a 3 bedroom house. We have paid 50/50 towards the deposit and repayments. I am currently on maternity leave until August (I'm an RGN). I have a few questions regarding the financial arrangement.

I wish to stay in the property. I worry that I won't be able to afford paying the mortgage on my own as well as the bills, nursery and other living expenses, even if I were to return to work asap. What kind of support would be available as a single mom, especially when it comes to the mortgage, nursery and bill payments?

Do I have to wait 6-7 months for the divorce to be finalised before being able to transfer the house to my name? In this case would I have to buy my soon to be ex-husband out? What if I am unable to buy him out - would I still be able to stay in the property until my daughter is 18, the house is sold or I remarry? Would he be entitled to still live in the property as well in this case? What if he moves out before the divorce is finalised and doesn't contribute to mortgage repayments does it affect what he's entitled to? Also, if the house were to be sold, would the profits be split 50-50, or is it different now that a child is involved? What if I wish to sell the property but my soon to be ex-husband doesn't want to move out and vice versa?
I worry that the divorce and having a dependant would make the interest rate skyrocket if I was to sell the house in order to purchase a smaller flat! Any single-mom friendly mortgage?
Regarding the child maintenance, what if he doesn't wish to contribute while in the UK or moves abroad? Despite being a high earner, he has given himself minimum salary as a director of his own ltd company and the rest are paid in dividends. Would this affect how much he's entitled to pay out?
How about spouse maintenance?

It's a loot of questions I knoow, but any answers/advice/information would be greatly appreciated!!

Thank you so much!

Almost all of the answers depend on your incomes and the amount of equity, savings, debt and pension you have. It is all going to get split up, sooner or later. The courts prefer sooner and for clean breaks. That means no spousal maintenance and no mesher orders if they can be avoided. A mesher order is when the sale of the house is deferred, not always to 18. With a young child it would most likely be a few years.

The basis of the split is need. With a small child you will both need a 2 bed property. You can get bigger or smaller than that but assume you have the same housing need as you will both be bringing up a child. A clean break arrangement means you get a share that sets you up to get on with your most basic life with no ties. The one with the bigger income needs less equity because they can afford a bigger mortgage or rent.

As you both own the house you can both live there. If one of you moved out and didn’t pay the mortgage it would not affect the share you get unless you agreed that. In any case the person moving out losses the benefit of that home and needs to pay for a new home.

His self employed status is the biggest issue for you.

I'm in same situation, about to press go on the divorce. Worried sick financially. I switched careers to move nearer to him, work part time so I can get kids from school and earn an ok wage but in current climate it's not enough. H also self employed with limited company and pays himself dividends and min wage salary. I'm counting on whatever equity I can get out of house and hope I can get at least half out. I'm going to need at least that to have any kind of chance of getting somewhere in an ok area and near the schools so my kids can walk home safely so I can work full time. It's all a bit of a stress. Will follow the thread for advice. Hope you're ok OP. It's not easy is it :( hugs x

There’s no automatic right to stay in the house until child is 18 and it’s almost unheard of to get a mesher due this long. So you’re essentially agreeing to buy him out. What will need to. We agreed is whether that is 50:50 of some other %.

this will depend on earnings and other assets there are to share along with both your needs and ability to raise mortgages to accommodate you.

you will also need to agree child arrangements and that will determine cms/ of he’s self employed this could be tricky IF he wants to be awkward and minimise his payments.

hes entitled to live in the house as much as you are. If he moves out and doesn’t pay the mortgage you’ll be expected to and can’t impact his share- especially if he has to pay rent elsewhere as you get sole benefit of his asset.

courts will try to avoid spousal if at all possible and look to achieve a clean break as soon as is possible - again, totally dependent on incomes and needs. You might, with a young baby b get some support for a few years but this is not a given.

when you say he’s a high earner, how high? That will guide a lot of the answers

Not can’t impact share, meant to say won’t impact his share unless you both agree on it.