Thank you for your reply . Would the court order the loans to be repaid prior to any settlement?
Then would she get 80% of equity to buy a house in full and final settlement and does this include spousal maintenance? If this is the case what income would she live off - if she is allowed to home educate the children? My son would prefer them to go to school. Would the court order them to go to school and her to work?
This would leave my son with only approx £60k to put a deposit on a new house and he would have to take out a new mortgage - how could he afford to pay maintenance as well?
We do not understand the alternative you mentioned - how would the charge on the new property work and how could it be repaid if she is still living in the house?
What spousal maintenance would he be paying and for how long?
She is currently refusing to recognise the loans at the mediation meetings, although we have concrete proof from our accountant. Do you think we should go to court for a ruling or should we offer her half of the equity of the house for a final settlement? We are trying to balance our best approach (i.e. to go to court or to make an offer) as he has other assets such as
half share in a field worth £20k
Discretionary trust share worth £40k
Would our best approach be to make an offer to waive the loans (i.e. 280k - 140 k each) and if so how could I ensure that the money would eventually go to my grandchildren?