Asset split

[Beansontoast99]

Just about to start the divorce process and oh has suggested splitting the cash assets now and me keeping the house until the youngest 13 turns 18 and then splitting the house on its sale 50/50. He already has somewhere else to live.

Is this a good idea/possible? Would doing this mean he could come back and get more cash assets (he's a spender and I save).

If it is possible what are the pitfalls

My immediate thoughts are that you’d be better off making your financial split final. Too much can go wrong if you’re beholden to him for the house you live in.

Is it because you can’t afford to buy him out?

You could draw up consent order now that outlines the financial agreement so he can’t come back for more ( neither could you)

he’s referring to a mesher order on the house. You’d be expected to pay all mortgage and bills but his share of equity is deferred.

noone here can advise if it’s good or bad as we don’t know the values of assets or earnings. Generally it can push problems down the road ( ie at 18 your daughter still needs somewhere to live, you’d be older, less time for mortgage , still tied to ex financially etc etc)

if you sold and split the house can you rehouse now? Are there pensions to consider ?

No mortgage on the house. We both have pensions he's not mentioned them.

Yeah can't afford to buy him out. With my half could buy smaller house easily.
Any house would be further away from school for my daughter and i dont drive and she would be living with me 100% time.
That would probs be his reason for holding off on the sale.

Im not sure he would want her apart from going out to do fun stuff.

Pensions need to be accounted for in the split. Any ideas on values for both yours and his?
Any other investments or savings?
Are earnings comparable?

He earns more than me. I earn around 22k and he earns 30 and has a self employed business (no idea on that but its probably around 15k or was the last time i saw anything a couple of years ago)

I used to be the main earner until 12 years ago. His private pension is 50k but he has 2 local government pensions as he's been with them since 2008 and I have no idea on those.

One of my workplace is 60k and then I have 2 smaller ones (only worked at each for about 3 years so not sure on those) and I have a local government one since 2018 and not sure on that one either but I only work part time.

You need to get his pensions valued. If they are valuable, you can trade that for house equity and get more than 50%. Don't agree to anything without full financial disclosure and legal advice from your own solicitor.

His 50% is worth x now but it will be worth a lot more when the DC turns 18. He wants to maintain the investment.

You’d have to ask his permission to make changes to the house and if you wanted to sell it before the child was 18 he would have to give permission and be involved in what price you accept. He would also have to pay half of selling conveyancing fees.

it’s up to you what you’re comfortable with because when the dc is 18 you’ve got a larger problem on your hands - you still won’t be able to buy him out but perhaps you could sell and down size? I’m not sure of your age because getting a mortgage x years down the road will reduce your mortgage term and lend-ability. Deferring the sale doesn’t seem to be in your favour.

If you do delayed sale I would put it as when DD turns 19 as you don’t want to disrupt her A levels with a house move.

@unsync ops pensions might be higher as well

OP's STBX has 2 LG pensions in force since 2008 so it's unlikely that her pensions will be greater than these, especially as she states the largest is currently at £60k.

there must be far more to this! I would be wary of making decisions so quickly!

how have you managed to get a mortgage free house on not particularly high salaries and a young(ish it sound like) child - is that relevant?

where is he going to be living?

will he be paying child maintenance if you’re doing the childcare?

We bought our 1st house 25 years ago in a cheap part of London. We sold 12 years ago and moved out of London at the time my salary then was 33k plus lots of overtime which we overpaid on the mortgage. I also had been made redundant so used that for paying off a chunk of the mortgage. Moving out of London meant house prices were lower hence being mortgage free. Also 25 years ago house prices were not as stupid as they are now.

He's bought a caravan to live in..not what I'd want but apparently its smart and newish.

No mention of child maintenance yet.

Well you should definitely apply for child maintenance if you’re doing all the care. It’s his child too so he needs to be contributing. Get a hold of his total salary, including self employed stuff, put it in the calculator to see what he needs to pay.

It is possible.

be aware that he may well get fed up with living in a caravan (!?!) and change his mind.

@unsync yrs but it sounds like he hasn’t actively contributed to them
sll that time and he’s not a high earner so they may ( or not) be more valuable than ops.

my point is until all
pensions are valued no one can say op will get more of the house equity as her pensions will also be in the pot for offsetting