Thanks Clare -
House is worth 700k with mortgage of 550k. However, the equity in the house belongs to my Mother who has loaned us the deposit. There are loan agreements in place that date back to 2010 that cover this when the house was purchased.
We have family debts of around 50k that relate principally to two things - legal, educational and medical costs associated with my eldest son, who is profoundly autistic, for a year spent being homeschooled pending a successful SEN Tribunal and a new school placement. We removed him from his old school after he was the victim of abuse in what our local authority recognised was a failing special needs school and it took a year to get him placed at our local primary school with appropriate provision where his siblings are. Total cost for the Tribunal and attendant medical evidence and homeschooling were £75k.
The debts also relate to a failed retail business my wife had started had 4 years ago, when I took out around £15k of loans to finance her working capital needs before the business was shut. The total cost of the business failure was around £30k in total.
All the loans and mortgage are in my name, as my wife had no income to display at the time there were taken out.
I have had no income for three months after I put my business into insolvency, but am about to start a new job on a salary of 130k per annum.
My wife has a 50% share in a local fitness business. This was valued at around £70k in December 2013, when she entered into the partnership, which is covered by a partnership agreement. Her £35k share is being paid for by working for 12 months without drawing down on the partnership. In other words her salary is technically 35k but she is not receiving any income, as her full-time work there is payment in kind for her share. Prior to this she had been being paid around £1k per month for her work in this business, income she stopped receiving when she entered into the partnership. This at least more than covered the child care costs to enable her to work.
I supported her entering into the partnership as I knew it was important to her, although I did not expect it would also lead to the break-down in our marriage after she has started an affair with her business partner. He has left his wife and kids and his wife is seeking a divorce.
She also receives various allowances relating to our disabled son (Carer's allowance and direct payments) which amount to around £550 per month. She also receives £800 a month from personal training outside of her business partnership. All of this go to her newly opened sole account and are used for her sole benefit and not any family bills etc. She is also applying for tax credits which will pay around £1k per month.
Given the growth in her business, it will be worth in the region of £250k come December when her buy-in will be complete and she can start drawing out of the partnership. She could take some money out now but she does not want to as it will delay the completion of her stake acquisition and instead continues to rely on me to finance everything. The business has about £50k of cash in the bank right now.
We have no other material assets, save a car worth £5k or so.
Many thanks for your help,