Mesher Orders

[Goodegg999]

Hello All,
We've just done our first mediation session. My wife is looking for 200K out of a 250K assets pot. The area she has chosen to live in 3 bed properties start at 380K. She can raise a mortgage for 180K, so needs a deposit of 200K. Her argument is strong for staying in the area. Support network available, kids friends nearby etc etc. (However, 3 miles down the road property is much cheaper but she dosnt want to live there) I have offered her a 60/40 split in her favour. 150/100K. She has said she will go to court if she doesnt get the 200K. I'm wondering if a Mesher Order could work. Say we split 60/40 I loan her 50K out of my 100K to be paid on sale of her house when the kids are 18. Is this how it works? I appreciate it ties up my money for a few years but she gets her house and we dont go to court. Does this sound reasonable?

 

[NewcastleBrownAle]

sounds reasonable, but who is paying the mortgage?

 

[Ash]

I'm no expert on divorce but I believe 70/30 is often ordered when there's no agreement. With a mesher order, the capital would be tied up until the last child reaches 18 (I think but am happy to be corrected as others know more about this). Would you be able to afford to rent? There are good arguments for a clean break/split as well and selling up. Would you be keeping the house and just buying her out?

 

[capa]

A mesher order isn't just restricted to when child turns 18, it can be a life trigger, like if stbx gets remarried is another popular one.

I would push for a clean break, however be mindful stbx does not have to sign it, which, I could be wrong, she could lay claim to a portion of any new property ypu may purchase,pension,lottery win, bonuses absolutely anything

 

[Ash]

If you have a clean break worded properly, she can't claim anything in future.

 

[capa]

Yes agreed, but, thays if she signs it, she can't be made to and a judge can't force her to either

 

[Ash]

I'm not aware of that situation - maybe others know. A clean break order is usually pretty final as far as I'm aware.

 

[capa]

It is Ash, only if its agreed by both parties, bear in mind stbx will leave themselves open to the same opportunities as what they will have on you.

I'm starting this process in next 2 months, with first hearing and I am more than willing to share all known and unknown aspects of the financial minefield that lies ahead

 

[Jumper85]

Hi @Goodegg999.

My recent experience in court was a positive one and I was in a similar position as you as STBX was wanting 90% in order to remain in the local area and was only claiming less than £10k income so could only get a very small mortgage.

The courts response to STBX requesting to remaining in the same area of a particular standard of house was that STBX needs to state what her "needs" are not her "wants" and equally needs to demonstrate she is maximising her earning capacity. The courts also has for housing particulars so you're able to demonstrate that, for example, £200k isn't needed for a deposit, there is far more affordable housing in the area (3 miles radius isn't seen as unreasonable) to achieve more of an equality financial split.

 

[Goodegg999]

Thank you all, quick further question. Does any one know if you can borrow against your money tied up in a mesher?

 

[MagicJ]

Thank you all, quick further question. Does any one know if you can borrow against your money tied up in a mesher?

Hi @Goodegg999 , I am unsure about Mesher specifically.

My experience has been that, once the STBX placed a Martial Interest Charge on the property I have been turned down by every lender - I can only get Secure Borrowing on a property that is my own IF I sign an undertaking to remove it, which I can't at this stage as that would be asking the STBX to agree to remove the Marital Charge she has placed on it.

Just thinking about this more practically, if you have a Mesher Order, it effectively means that both parties have an agreement on the Equity Split of the property. Taking a Property Secured Loan puts the property at risk which directly puts the Mesher Order at Risk. I would imagine that, if the shoe was on the other foot & a party approached you for agreement to such a proposal, where you only had a downside, you would not agree to such a situation.

I would reiterate I do not have a Mesher Order in place & am in between FDA & FDR on the Financials process, but above is food for thought.

 

[Roblox]

I have a mesher order in place and a clean break. Can explain how it works if it helps.

 

[Dirge]

Hi @Roblox, could you give an explanation on this thread, would be useful to me and others. I assume it would be a capital clean break achieved with Mesher order? Thanks.

 

[Roblox]

Hi @Roblox, could you give an explanation on this thread, would be useful to me and others. I assume it would be a capital clean break achieved with Mesher order? Thanks.

Yeah sure.

Clean break income and capital.

In brief I had to sign over the house. I remain on the mortgage but for all intents and purposes it's her house until the trigger point. The kicker is although she pays the mortgage I would be liable if she defaults (although at that point I can insist on a sale).

On the house sale I get a percentage based on the value of mortgage when we separated.

There's a charge on the house and if looking for a new house this one needs to be factored into affordability conversations which makes it quite tricky. You're also potentially stuck with your exs credit score if she has a bad one as a financial associate on the mortgage.

Otherwise its a clean break in totality which is as much as could be achieved in my situation.

Trigger points for sale are pretty standard, youngest turns 18, her remarriage, cohabitation with a new partner for so long etc. For reasons I won't go into here the house will go at a certain point so my situation my not quite be the norm.

I would add I only think she agreed to it as she had a new partner and wanted her new life etc.

 

[Dirge]

Thanks @Roblox. So quite clearly, it is possible to get a clean break with a Mesher order. Could I ask, how is the maintenance and repairs of the property dealt with?

 

[Roblox]

Thanks @Roblox. So quite clearly, it is possible to get a clean break with a Mesher order. Could I ask, how is the maintenance and repairs of the property dealt with?

Your ex would pay for upkeep of the house

 

[capa]

Your ex would pay for upkeep of the house

Is that a stipulation in the cleanbreak or mesher order? Or an agreement that's ratified?

 

[Roblox]

Is that a stipulation in the cleanbreak or mesher order? Or an agreement that's ratified?

It's part of the court order agreement which includes the mesher order.

 

[Goodegg999]

Thank you for this. Does anyone know a standard division on a mesher agreement. I understand that it's usually 50/50 of the assets. Is this normal, or are there cicumstances where this is negotiated?
Thank you
All the above very helpful