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  • Property-a-holics

    Divorce and my properties

    Agreed Stuart - hence my query around exactly how the assets are to be distributed.

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    Let this be a warning for other landlords, if you have a lot of assets to lose, don't bother getting married. Sure it can be great for a while, but after 5/ 10 maybe 15 years theres a 50% chance it will end badly. 50% chance is a huge gamble. Would you ever go to the bookies and bet half of all your savings and assets on a 50% chance bet? No chance. You never see it coming, you think it will never happen to you, you may be madly in love, but things change. Unless the person you marry is richer than you (as was the case with me) then you really shouldn't waste your time with marrage. Have kids sure, have a partner, but marrage is a relationship between three people, you, your partner and the government.  I will never marry again as I don't want a threesome with the government. Gf's only from now on. At least if you split up with a gf / bf your whole world doesn't get nuked.

    Ill be updating this thread at the process goes, anyone with any questions feel free to ask.

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    In practice nowadays in UK around half of couples are not married - and thus around half of all new borns are out of wedlock.

    Landlords per se are though a tiny proportion of the circa 50 million UK adults - and the undoubted housing affordability crisis for those under say age 40 means that it is challenging to accumulate significant net worth.

    In your case - have you decided in what manner your wife will be paid off - will it be in cash or as a formal share of one or more rental properties?

    If you need to sell the rental which is owned outright - then I imagine that any CGT could be offset by 2 sets of the £11700 annual nil rate band - with any excess gain after sale fees being charged at 18% - unless you are a high rate taxpayer.

    Sale of BTLs is of course complicated by need to evict tenants (others may suggest selling with tenants in situ as a going concern) but any sales at present are challenging.

    On which point it flags your need to get a robust handle on actual overall net worth of the 3 BTLs - ie after all sale fees/taxes are factored in.

    Financially I guess you will be aiming for a clean break - rather than soon to be ex-wife having part share in properties.

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    Lots of good advice already and having been through a divorce myself (and seen many others close up), I would add: keep it amicable. Not just for obtaining the best possible financial outcome, but also for your sanity! If you allow your (totally understandable) ire to inform your actions, the only winners will be solicitors. Best of luck; it's an awful thing to go thorough.


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    Usually in a divorce the wife will get about 60/70% of the assets where children are involved. Thats the way it works I am afraid.

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    Thats ok for me, a large part of the money was hers to start with.

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    I'm going to give you an example of what can happen if it's not amicable.

    Married for under 3 years but co habbited for longer have a child together living in a house husband owned for over 20y wife has own property with BTL income.

    Relationship is breaking down H offers wife 250k she keeps her house he keeps his .

    Wife wants 750k and 7k a month ( H only earning half that )

    Gets more and more acrimonious bad behaviour on both parts .

    Approximately 50 yes 50 times in court later wife keeps her house husband keeps his no spousal maintenance legal bill of approaching 425k and wife awarded 255k .

    That's 5k more than the husband offered to start with but it cost well in excess of 425k to get there.

    If ever there was an example of why to keep things amicable and be realistic this is it .

    Best of luck

    A

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