need clarification on maintenance please

Hi, can anyone provide any thoughts on the likely outcome of a financial settlement if it were to go to court (which I am trying hard to avoid via constructive, unemotional dialogue).

Seperation has been 3.5 years, we have a 4.5yr old daughter and have her 50% of the time each.

My ex earns gross 30k, I earn gross 57k, we have joint assets worth 150k (mat home less mortgage). Non excessive debts incurred since sep are ~20K.

Our first step to divorce has led to a solicitor letter on behalf of my ex threatening from e and court proceedings despite generous financial support for the past 3.5 years.

Factual insights apprecited.

Thank you.
R

Hi,

Need a bit more information to give a fuller answer.

Who currently resides in the FMH? Is it a joint mortgage and how much for? Have you talked of selling the property?

Do either of you have pensions?

Are the debts since splitting joint or in one name?

Are you currently paying an amount as child maintenance and or spousal maintenance? And how much?

The fact that you have 50/50 residency of your daughter is a big point when splitting assets.

Post this information and I am sure that you will get a better response to your query.

Regards, Sarah

Hi Sarah

Thanks for your reply, here's some more facts:
150k Joint Mortage
Pensions (yes, both)
Debts (yes, ~£15k)
I am contributing ~£800 per month towards the FMH mortage and daughters childcare

Thanks
R

According to CSA rules CM is paid to the parent who receives CB at 15% of the NRP's income for one child. When care is shared 50:50 there is a 50% reduction in the amount payable.

The discrepancies between your incomes means spouse maintenance is borderline and a deciding factor will be your wife's ability to raise a mortgage and how much the capital split is in her favour. Generally the higher the split is in her favour the less likely SM.

thanks for your reply Fiona

my ex wants to stay in the 3 bedroom FMH however doing this would require a larger mortgage. there are 2 bedroom properties in the area that would cost much less, not sure she would want this, not sure how much leverage I'll have on this idea either? another idea is for me to leave a % of my cut in the property which can only be realised if she cohabits, decides to move or theres a mutual agreement to buy me out - i beleive it would be possible to draw up a contract to cover this - this is me acting on good will - it means I would have to take a larger mortgage when i buy my next property, however I still want to ensure the division is amicable and there's less stess, solitor and court fees. Any thoughts?

Rob,

My personal opinion is that owing to the age of your daughter, you would effectively be tied to the mortgage on the FMH for another 12 years or until your wife cohabits. It is a hefty mortgage and I think that in order to for you both to provide long term accomodation for your daughter; the sale of the property is a good idea.

Your wife may be entitled to a larger % of the equity (both due to her earning capacity and depending on the difference in value of your pensions). I don't think it is unreasonable to expect your x2b to move into a 2 bed property. She may then be able to take on her own mortgage, owing to her salary and her share of equity as a deposit.

The fact that you have shared residency goes in your favour in relation to the above in my opinion.

As for Child Maintenance and Spousal Maintenance. Base CM on 15% of your take home pay (but make a 50% reduction owing to shared care). Not quite sure on SM when you have 50% residency. Your wife will be entitled to an amount of Child Tax Credit, don't think it will be much, but she would get assistance if paying for childcare.

I would find out how much, take home pay, Child Benefit and Child Tax Credit your x2b gets and then compare that with your take home pay. Maybe you could agree to give her slightly more equity as a Clean Break as far as spousal maintenance is concerned.

You can fill in a form E just for ease of collating information without the need to take it further. Another way to discuss finances is through mediation, they provide forms to fill in, a bit like a form E and any agreement reached through mediation can then just be formalised through a solicitor.

If your x2b refuses to sell the house your only option would be to make an application for Ancillary Relief and then costs start to rise.

Hopefully, your x2b will see selling up makes financial sense.

Hope this has helped.

I will just say that if anyone thinks I am selling his x2b down the river, I am not, I just think it makes financial sense to all parties. Yes, I am fighting to keep my house, but I have 5 children to house and that isn't as easy as finding a house for you and one child. No I am not on the defensive, just making what I say as clear as possible.

Regards, Sarah

Sarah,

thank you for taking the time to give me your advice, I really appeciate it.

This is the conclusion I'm reaching, currently my ex doesn't want to sell but I think maybe she's worried about a move, I've tried to talk to her about it but it's obviously difficult to talk without emotions running high. I hope Mediation is the next step if we can't agree together - I think her sol wants to mediate on her behalf, she sent me quite an emotional letter full of vailed threats about court action but not once advising Mediation Serivce as an option, it'll just create unnnessary expense for my ex...reckon sol wants to make some money.

(for those reading) I'm not out to retain as much as I can - I just want to make sure that my daughter has 2 financially secure homes. I've financially stuck by my ex for the past 3 years, we've created a good environment for our daughter and this (divorce) is the final step - so I don't want it (divorce) to undermine what we have established - so common sense opinions are welcome and help keep me in check.

Sarah - good luck with your situation.

Thanks again
Rob