Guest viewing is limited

Mesher order? Who pays the mortgage?

W

wb72627

New member
Member
Hello all,

Hypothetical question, but it’s just something I would like to know in case things get sour in the future….

My wife and me married a few years ago, got a joint mortgage together and have 2 children.

My wife put half the deposit towards the house (about 2K)

I’ve read about these Mesher orders? Which I believe allows you to stay in a property until the children are 18 and then you sell and split the proceeds.

My wife can’t afford to run the house on her own, so basically, if I was to leave the house, then I surely wouldn’t be able to made to pay more than half the mortgage amount (she still couldn’t afford it)

If she left, would I have to buy her out (1/2 the deposit she paid plus half the increase in the house value)

I can find lots on the internet about these Mesher orders, but not who pays for the the upkeep of the house for the person moving out whilst they wait 18 odd years to sell?

Hope there’s enough information here to answer.
 
I entered into a mesher order.

Ex wife lives Iin house and pays mortgage.

House valued at point I left home or thereabouts. I get so much of the house sale based on value at sale less equity on house at point I left.

So for example. Leave house Oct 2022. House sells Oct 2030.

House sale at Oct 2030 less equity left on property Oct 2022. In theory is your 50%. This reflects your capital contribution and her paying mortgage from point you leave. My solicitor said this is how it works, not sure if it sometimes deviates. The pain in the arse element for you will be staying on that mortgage which could be years before a sale.

Of course if no formal arrangement like this it continues 50/50 to point of sale.
 
Also person remaining in house is responsible for upkeep. Although if something significant you may need to discuss
 
Hi,

Thanks for your reply- great help.

The short version is my wife could not afford to live in the house, nowhere near.

I probably can on my own, and was wondering whether a judge would ever say the my child can stay with his mother at ‘our’ house whilst I have to move out. I thought then I would have to pay half the mortgage at most?

However, she could not afford it, so a judge would never order this would they?

If this ever happens i am hoping to stay here and then believe I would have to remortgage to give her her half of her deposit and half of the value the house has risen?

Thanks for your reply and If you need any clarification, let me know.

Regards.
 
wb72627 said:
However, she could not afford it, so a judge would never order this would they?
Click to expand...
It's unlikely. Your seperate financial requirements going forward are based on your "needs" ie a suitable property each which accommodates you and your offspring.

That means that both of your future financials capabilities need to be scutinised against what is currently in the pot, ie house equity and individual monies such as pensions and other realisable assets. Forget who has contributed what to the house equity in the past, it is considered as "matrimonially mingled finances". For eg, if you inherited a 6 figure sum and paid down the mortgage at some time.....it becomes hers as well, regardless of whether she was a beneficiary at probate.
wb72627 said:
If this ever happens i am hoping to stay here and then believe I would have to remortgage to give her her half of her deposit and half of the value the house has risen?
Click to expand...
That will depend on the above. The deposit (£2k, right?), is completely inconsequential because of value and in any case is "mingled".

There are two (x2) sums going on here. The realisable assets (÷ by 2) and the future earnings capabilities of each of you. I'll refer to these as Y and Z respectively.

Let's say each of you "needs" a 3 bed property at 400k each and the value of Y = 500k. So Z will have to equal 300k to meet these seperated "needs", ie each with a mortgage of 150k against you. The question is then asked " can each attain a mortgage capability of 150k?". Now, this does not have to be based on present circumstances (ie one works and the other doesn't) but it is influencing in that ordinarily one person in the relationship is breadwinner and the other is not. (This is where the Dad comes unstuck/screwed over: around 70% of males are the breadwinner, so Y is split against them at Financial Court Remedy stage).

While this circumstance is influencing, as described above, a good Advocate should present how the non breadwinner should now stand financially on their own feet.....employment. The question is therefore asked "what potential annual earnings to provide for a mortgage can this person attain?"

There is a see saw going on here, and the judgement will rest on finding how the "needs" are going to be met....a balanced see saw.

I can write much more but for the time being I'll let you reflect on the above and come back with further Q's. But one last thing: aim for a clean break, and a Mesher Order is not a clean break, nor is it beneficial in any way financially to the non occupier.

HTH, SS.
 
I agree SS but sometimes a mesher order is as clean a break as one can get sometimes. I.e. you have a clean break otherwise but an ex can dig heels in for a mesher order, although they are becoming less fashionable now.
 
Could you not live separately in the same house for a while? If the house is big enough to split into separate areas. That way neither of you has to move out.

The stbx won't want to move out because she likes the idea of keeping the home, kids and income and just getting rid of you (possibly!) and she can't afford to. If you move out you can be in a risky position over seeing the kids and open to leverage from ex's side over finances to be able to see your children (unless you have a CAO in place asap for the kids - you can even apply before moving out). Some people still have this archaic idea that Dad has "abandoned" the kids if he moves out when usually he does it to keep the peace.

If you can both agree to live separately under the same roof for a while it can make things easier for a while. But if there's any chance she might accuse you of something (sometimes an ex will do this just to get you out) then that wouldn't work and she could get an occupation order to get you removed.

I know nothing about mesher orders and not up on divorce finances either. I do know that it can be good to have arrangements for the kids in place regardless of what's going on with the divorce.
 
You must log in or register to reply here.
Back
Top