Alternatives to Spousal Maintenance

[Jumper85]

Sorry to hear that @Dirge, sounds like she took a good chunk of the equity.

On the flip side, you can now move on which might be better for mental health and wellbeing which is far more important than money and I honestly can't wait until this weight is lifted off my shoulders when I can stop paying for 2 households which I've done now for almost 2yrs!

 

[Unknown01]

(£400 x 12) x 3 = £14,800

Assuming an interest rate of 5% per annum and 36 payments of £400 with a total future value of £14,800...

The net present value is £12,727. That's the lump sum you need to pay for a clean break on the amount that she is requesting for spousal maintenance.

I would suggest you offer £9k lump sum for a clean break on income because her figure is going to be too high at the advice of her solicitor.

 

[Jumper85]

(£400 x 12) x 3 = £14,800

Assuming an interest rate of 5% per annum and 36 payments of £400 with a total future value of £14,800...

The net present value is £12,727. That's the lump sum you need to pay for a clean break on the amount that she is requesting for spousal maintenance.

I would suggest you offer £9k lump sum for a clean break on income because her figure is going to be too high at the advice of her solicitor.

Thanks Unkown01,

I make £400 x 36 £14,400 so assume that net present value would be even lower. The problem I have is even finding £10k now as I'm only being left with just enough for a small house deposit but good to know that's how it's at least calculated.

 

[Scoobydoo]

I may have missed it but have you agreed the equity split as such or assets ? Could you not drop that by 10k and then pay spousal off to get the clean break. ? Problem is paying g hard ball mat cost more than the 10k in legal fees so a pointless battle ..

Sucks they take it off ( and cms ) when it comes to affordability ! … the ‘test ‘ they use ( can’t remember the official word ) is a bit odd and Er’s on a ridiculously safe side

 

[Jumper85]

Hi @Scoobydoo. Yeah, agreed equity split, I've given as much as I can, she's basically taking 90% of the equity, it leaves me with just enough for a house deposit and fees, etc. It leaves me with absolutely no breathing room and means I'm looking at a 90-95% mortgage. I've explained I can't afford to give anymore from that figure so offered £14,400 in pension transfer.

What do you mean about your last point that they take it off (and cms). I've not got CMS to worry about, thankfully the boys lives with both of us on an exact 50/50 split.

 

[Scoobydoo]

So you’ve agreed 50 50 lives with. Jist out of curiosity is there a CAO. And ot states 50 50. Not that you’ve evolved it ?

This is starting to smell a little of my case exactly and guess what happened ( hence the question ). Rolled back time with kids.

Like you was concerned about her financially and wanted to do the right thing … so similar solit to yours.

The vulture then struck. Anyway less about me. Just be careful …. Is the equity split court ordered .? The extra payment you pay as you seem a good man . Do they come out of your bank account. ?

This payment and any spousal will be taken into account when your mortgage ‘offer ‘ is calculated. Let’s say it’s would be 4 times your salary ( or self assessment ) suddenly it’s whittled down to 3 or 2.5 as when I done mine most lenders see it as a regular payment and in case of spousal I believe also ..

One thing I do remember being said and when she applied to the courts ( this I’ll have to check ) was that it was written in that spousal would cease if she met someone and co habited with them for over a year. I will get back to you on this if it is of interest as I’d have to dig out my papers

 

[Jumper85]

So you’ve agreed 50 50 lives with. Jist out of curiosity is there a CAO. And ot states 50 50. Not that you’ve evolved it ?

This is starting to smell a little of my case exactly and guess what happened ( hence the question ). Rolled back time with kids.

Like you was concerned about her financially and wanted to do the right thing … so similar solit to yours.

The vulture then struck. Anyway less about me. Just be careful …. Is the equity split court ordered .? The extra payment you pay as you seem a good man . Do they come out of your bank account. ?

This payment and any spousal will be taken into account when your mortgage ‘offer ‘ is calculated. Let’s say it’s would be 4 times your salary ( or self assessment ) suddenly it’s whittled down to 3 or 2.5 as when I done mine most lenders see it as a regular payment and in case of spousal I believe also ..

One thing I do remember being said and when she applied to the courts ( this I’ll have to check ) was that it was written in that spousal would cease if she met someone and co habited with them for over a year. I will get back to you on this if it is of interest as I’d have to dig out my papers

Hi @Scoobydoo. I've got a court order for the kids that states lives with both parents and the schedule detail states what days they're with the ex, the rest of the time, they're with me. The schedule is precisely 50/50 but then again I can even argue that the court order states they're under my care all other time.

The equity split isn't court ordered but from the 2nd hearing the judge indicated that if this was going to go to final and if I was still seeking a clean break then I'd have to give up all of the equity minus a small house deposit for myself which equates to a 90/10 split and then it was debated whether the equity offered was sufficient enough or whether spousal would be paid. Theoretical figures were plucked out of the air as the ex was asking for £1,200 monthly over 5yrs but the that was suggested it's far too high and maybe 2 or 3yrs at £750 monthly was an option. Key thing at this time was that it wasn't known as to what impact spousal would have on my affordability levels.

To your point below (thanks for clarifying), if I agreed to spousal, it's a financial commitment and therefore needs to be factored in when considering mortgage borrowing and with an additional monthly payment of £750 (As well as £400) on top of my current outgoings, I couldn't afford to buy a house.

Thanks for the offer, no need to dig out the paper, I've basically said, I'm not agreeing to spousal and if she wants it, she'll have to take the case to the final hearing.