1. Can you better explain the situation as what you have recounted is slightly confusing. Who holds the mortgage? Is it a building society? How much is owing on the mortgage? Is it 7,000, or 32,662.71? Why do you say that just 7,000 should have been deducted before your share was calculated?
2. I regret to say that what the solicitor did is the correct approach. Essentially, the 32,662.71 has to be deducted as this was what was owing at the time the court order was made. The court order requires you to give credit for any reduction in the mortgage sums up to the date of sale. So if there is only 7,000 owing on the mortgage today, you do not get any part of that reduction. You only get 40% of the sum realised less the 32,662.71 owing when the court order was made, I regret to say. So here your 40% share was correctly calculated. This is what is meant by the expression in the Order that " the applicant shall give credit to the respondent for such capital reduction that she shall have made, if any, in respect of the said mortgage between the date hereof and redemption of the applicants said charge". This means that you must allow credit to your wife for any reduction in the mortgage from 32,662.71 and you will not get any share in this reduction. So that is why the solicitor has not just deducted the 7k now owing today.
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