Finalising divorce while still living together?

[FancyCatSlave]

Currently getting amicably divorced and still living together. We have to finish the renovation of this house before we can sell and release the money for us each to move.
It’s fine, we rub along ok and have our almost 6 yo DD too to co-parent. I expect we will be able to list by Feb, hopefully sooner but that’s not clear. We could very easily still be in the house this time next year although I hope it is quicker than that.

We can apply for the Conditional Order next week. We agree the financial split but can’t get the house valued until it’s finished or move any money around until it’s sold. Given we are still financially connected via the house for another 6-9 months minimum what are the risks, if any, in finalising the divorce before we can split the finances?

Neither can afford to move out, all the money (considerable amount) is in the house which we both need to fund until it can be sold. But selling it will give us each enough to buy with a mortgage.

I’d like the divorce finalised in many ways asap so that it’s “done” but I don’t want to do it if it has any risks? Clean break will be the eventual outcome but it’s not possible until we sell and for that we need to raise the funds to finish an old thatched money pit.

There’s no other parties involved, no abuse. We’ve done the process ourselves so far but will need a solicitor for consent order. We want to split marital hime 50/50 and keep own pensions. 50/50 custody of DD. There’s no savings as the money pit has taken it all.

Do check if there are tax implications of divorcing prior to house sale/financial settlement being agreed?

The financial settlement can be written so as to split the ownership of the property to you as individuals and place a requirement to sell at a future date based on an agreed process. This should provide contingency in the event of you or him disputing an acceptable sale price and the sale drifting on.

there is no law against living together whilst divorced or co owning an asset.

The house is in my name only (he’s not on mortgage or deeds) due to his previous bankruptcy. So whilst I fully agree to split 50/50 and we currently pay mortgage proportionally based on income (he pays about 40%) he doesn’t actually own any of it on paper but obviously it is a marital asset as far as divorce is concerned-but not as far as insolvency service were concerned. Does that impact?

Normally everything goes into the financial pot. So if he had a pension solely in his name that would go into the pot too.

Yes I know that. But most of my pension predates the marriage and he doesn’t want any of it as he appreciates the fact he is getting a huge amount of equity having contributed fuck all deposit. I have put in approx £400k to his £0. And not because he has sacrificed a career raising children or supporting me or anything like that-just because he is a financial disaster and couldn’t be arsed to get a pension or save or do anything other than wrack up credit cards. I’m not a high earner, my deposit came from
invested inheritance.

I’m already going to have to absorb half of his enormous new debt that he has created since his bankruptcy.

I don’t want advice on the split as we agree it (much as it galls me) as means he can house our daughter. I just want to know the specific risks, if any, of finalising the divorce before I sell. The finances would be finalised before sale but after the divorce. Or whether I have to remain married to him for another 12 months or more because we can’t sell yet.

I would really just rather have his as an ex as soon as possible. But if I can’t, I can’t.

You can get divorced and leave the financials till later. But this comes with risk as you remain financially tied to the other party. Which means they have a potential entitlement to any assets and debts accrued by you after the divorce and vice versa.

In your case the longer you defer the financial settlement the more exposed you are to his financial recklessness. The fact that he is a bankrupt also means that there are third parties who can interfere with any agreement he makes with you. He potentially isn’t free to waive entitlement to your pension if that is needed to pay his debts.

You need good legal advice on your situation. Getting divorced without a financial settlement means you get some limited freedom. You can remarry and any children won’t automatically be his. If there is benefit to having those freedoms then do it. For the financials you need to do it properly and I think in your case you need a lawyer and full disclosure because if the risk of his bankruptcy and the potential for their to be hidden debt and creditors.

His bankruptcy was more than 6 years ago, it’s been discharged. He’s just started accruing it again as he hasn’t learnt his lesson. There’s no hidden debt, he’s perfectly transparent about it and I have access to his credit file.

Whilst he is a feckless knobhead with all things money he’s a very nice, fully cooperative person and we still get on perfectly ok. He isn’t hiding anything- Ive got access to his banking too.

I’m just finding it rather overwhelming that we will be living together, legally married for so much longer. I’d love it to be over as moving on is going to be so hard.

You need legal advice about the debt you aren’t necessarily liable if money wasn’t used for family benefit.
The main risk of divorcing without financial order is to him if you died before the financial order it would be more tricky for him claim his share.
I divorced first (it made student loan application easier to be divorced and ex was dragging things out). Personally I would want to cut ties with someone incurring debt.
As the stronger financial party don’t be surprised if he moves the goalposts especially if his financial situation gets worse - I would try and get the legal side sorted asap while he’s being cooperative even if it says the house will go on market by a future date.
Capital gains used to be an issue when one party moved out and divorced before the financial order but I think the rules have changed on that and neither of you are planning to move out anyway.