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So, I've recently discovered my wife has been cheating and im researching into divorce.
Obviously, Im quite upset considering we have a 2 year old child. But I need to get a plan in action (she doesnt know that I know at present)
As I understand it, in the UK, the wife will usually get main rights to the children (unless they choose not to) and because of this to add insult to injury she would also have rights to our marital home (if we had one).
So Id let to know what people think may happen? Obviously I will be getting legal advice but I thought Id ask here first.
My situation is this:
I have 3 properties all in my name.
1 is owned outright worth around 180k
the other 2 are on 75% BTL mortgages.
We currently don't have a 'marital home' as we are renting (im paying for it anyway).
We used to live in one of my BTL properties a few years before we started renting and changed the mortgage to a BTL. So Im guessing perhaps the judge would class that house as our martial home as we used to live there? So im assuming I will lose that one to her 100%?
With regards to the other 2 properties (1 owned outright 1 on 75% BTL mortgage) Im guessing the one owned outright I would be forced to sell and split the money 50/50 and the other one I presume I would also have to sell and split whatever money is left after paying back the 75% loan 50/50.
Do you think this would be what would happen? Am I being too pessimistic? (or perhaps even too optimistic!?!)
Has any landlords been through this?
btw, I did consider transferring the property I own outright to my dad. But apparently if you do this just before divorcing the courts see right through it and can order it to be transferred back AND punish you for it further as they can see your just trying to hide an asset
This is an awful scenario and I feel for you.
Base everything on a 50/50 split on pure equity ( meaning, factoring in CGT on both sides, and selling costs at 3%, overall - includes Selling Agency/Solicitor fees ).
You might need Red book valuations on all properties.
You will obviously have to be mindful of paying child maintenance until he or she is 18.
My advice to you after a bitterly contested divorce myself is for you to hire a barrister each ( That are knowledgeable on property law ) to join you in a room at home to thrash everything out. You will feel comforted to know these are 'court experts' trying to achieve the fairest outcome for you both.
Going down the Solicitor route will drain you both and much money too. And the time will drag on as it gets more and more and more acrimonious.
Even if you pay £4k for both barristers for a day or 2 meetings, it will save you so much in the long run and will help you conclude and move on.
It will also give you both the chance to remain civil to each other regardless.
I wish I had done this earlier. I only got a barrister half way through.
I hope this helps.
Also would i still be required to give up one of my BTLs as a marital house even when she's taking half of all my other assets? Eg couldnt i say she could buy her own home with her half of the money from selling the property i own outright? I mean she will get at least 90k from that one house alone
Have a browse of this site Jacko, I found it very helpful.
Can you please list a few details.
Dates of your purchases.
Source of the funds.
Date of your marriage.
I would most definatley seek legal advice specific to the case.
But I will try to add as much as I can.
Bought Property number 1 BTL with 25% deposit in 2009 before marriage or meeting her.
Bought property number 2 BTL in 2013 with cash (gift from her parents) and lived here until 2014. We agreed to transfer this property into my sole name so that I could remortgage it as I had a salaried job. (so in 2014 that property was put into my sole name has been ever since, I remortgaged this the same year (2014) allowing me to release enough cash to buy the 3rd property outright for cash in 2016
Property number 1 I bought with 25% deposit before marrage in my name
Property number 2 was bought 2013 by wifes parents but transfered into my name in 2014 and remortgaged as BTL in my name
Property number 3 was bought cash 2016 with the proceeds of the remortgage of property number 2 in my name
All properties are rentals, we have no marital home as such as we rent. Property number 2 we lived in for a year
Seems odd that you choose to pay gross rent on personal home - whilst being taxed on rents received elsewhere - including pending CGT liabilities on the 2 BTLs.
Did you make a PPR election to HMRC when you acquired second BTL?
I would assume that since all properties are now in the name of one of the spouses - that all 3 properties and any other assets are deemed via marriage law to be jointly owned and a circa 50/50 split (depending on award on child maintenance award) being likely outcome on a divorce related financial settlement.
Are you and your wife both employed full time?
Could your wife service the rent/bills for the property you now reside in - from her own current income?
Assuming both BTLs have similar equity and rents - it would seem that net outcome is that each spouse ends up owning one BTL - and makes their own arrangements for housing as a separate issue.
Thereafter - depending on location of BTLs in relation to any jobs you each have - it may be more practical to serve Notice on tenants and move in to the single BTL - or indeed just sell up and start over.
Less radically you each move in to your separate single allocated BTL and take a lodger to maintain income - noting the £7500 tax free rent a room allowance
The financial settlement will largely look at the marital assets - which for the BTLs translates simply in to net equity for each - minus any sales costs if you go down that route.
So say 2 BTLs worth c.180k - one with a 75% LTV loan o/s - gives a joint pot of £225k less sale costs as applicable and you each end up with around £107000 net.
Concurrent with that is of course the need for child maintenance to be factored in to the split - I assume your spouse will continue to have custody hence may need a larger share of net joint assets - especially if she has no job.
I wish divorce was that rational. Having been on the receiving end of 2 of them I can confirm that you can neither calculate nor predict the outcome.
Agreed Gary - though I did caveat my response via necessary provision for child maintenance - whereby a judge may allocate most of the joint assets to the wife/child in light of their need for housing and fact that a very young child will prevent wife from working for some years.