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Clare
Clare, Family Solicitor
Category: Family Law
Satisfied Customers: 34274
Experience:  I have been a solicitor in High Street Practise since 1985 and have specialised in Family Law for the last 10 years
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My daughter is separating from her husband and trying

Resolved Question:

Hi,
My daughter is separating from her husband and trying to sort out their finances. She has been advised that when the house is sold a 70/30 split in her favour would be suitable but he is asking for 60/40 - when the youngest child is 18 (15 years time).
He is currently refusing to negotiate but they cannot afford a court battle.
It has also been suggested that she gives him 40% of the current equity now (approx. £15,000) and a percentage when the house is sold.
They are attending mediation and their next visit is next week.
Can you advice please? Is there an alternative solution.
Thank you
Jackie Gabb
Submitted: 2 years ago.
Category: Family Law
Expert:  Clare replied 2 years ago.
Hi
Thank you for your question.
My name is Clare
I will do my best to help you but I need some further information first.
How much is the house worth and how much is outstanding on the mortgage?
What income do they each have?
Clare
Customer: replied 2 years ago.

Hi Clare,

Their house is worth £225k and the mortgage is £145k, he wants 40% of the total equity when she sells in 15 years time.

My daughter is happy to agree 40% of the equity now but it doesn't seem fair to think her husband would get 40% of all the equity after she has paid the mortgage for the next 15 years She is hoping to get the mortgage into her sole name.

My daughter earns £11k and her husband earns £35-40k.

He no longer lives in the house and she is waiting to hear how much she will get in tax credits. She has spoken to a financial advisor and he thinks that she will be able to cover the mortgage on her own.

Thank you

Jackie

Expert:  Clare replied 2 years ago.
Hi
Is it a repayment mortgage?
Clare
Customer: replied 2 years ago.

Hi Clare,

Yes they have a repayment mortgage.

Jackie

Expert:  Clare replied 2 years ago.
Hi
Can your daughter afford to pay him the 40% immediately?
Clare
Customer: replied 2 years ago.

No unfortunately not.

Expert:  Clare replied 2 years ago.
Could she afford 30% immediately?
Customer: replied 2 years ago.

Possibly, but it would be difficult.

Expert:  Clare replied 2 years ago.
Hi
Tat's fine.
What is the position on pensions?
Clare
Customer: replied 2 years ago.

My daughter has a frozen pension with Nationwide which she was paying into for 12 years with 3 maternity breaks. Her husband has a frozen one with an old company and is now paying into one with his current employer.

Expert:  Clare replied 2 years ago.
How are they being dealt with in the negotiations?
Customer: replied 2 years ago.

They haven't really thought about them, but she thinks they will just have their own. Although she will bring it up at mediation next time.

Expert:  Clare replied 2 years ago.
Hi
Do you know their relative values (it helps with the capital division)
Clare
Customer: replied 2 years ago.

My daughter's is worth about 50k but she is unsure about her husbands. She expects that his will be more but is unable to get this information at the current time.

Customer: replied 2 years ago.

I have been asked to rate the answer. I don't think I have had an answer yet, you have asked questions for further information regarding the situation but I haven't had a clear answer. I presumed you were gathering the information to give me a more informed answer.

I wanted some guidance and a possible solution to my first question.

Thank you

Expert:  Clare replied 2 years ago.
Hi
You are quire right - and I am sorry for the way the site operates - sadly well beyond my understanding let alone my control
Given the age of the children and the fact that she will have their care for many years to come and the substantial difference in their incomes your daughter is certainly entitled to a higher share of the equity.
If her ex wants to limit it to a 60/40 split then he needs to understand that your daughter is entitled to and WILL claim Spouse maintenance as well as child maintenance.
A 70/30 split with no spouse maintenance would be reasonable - especially if payment is immediate (although he will have to stay on the mortgage)
Please support your daughter to ensure that she does not accept a much less favourable settlement than she is entitled to
I appreciate her concerns about a court battle - but it need not cost much in the first stages as it is a form filling exercise that she can do herself - and she should remember that in fact her ex has much more to lose
I hope that this is of assistance - please ask if you need further details
Clare
Customer: replied 2 years ago.

Thank you, ***** ***** really helpful. One last thing, can you explain spouse maintenance, it's not something we have come across before. You say that she would be entitled to claim it, if he has 40%, is this based on the figures I have given you?

Expert:  Clare replied 2 years ago.
Hi
the significant difference in their incomes means that as well as maintenance for the children your daughter is entitled to a share of her ex's income for herself - spouse maintenance
It is not as clear cut as child maintenances there is no fixed percentage - but given the difference in incomes it could certainly be up to £10,000 a year (assuming she does not cohabit) and if she is giving that up then she is entitled to a larger share of the equity
Clare
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