Financial claims
On Divorce a husband and wife have claims against each other for:
- Maintenance Pending Suit (one party paying the other party spousal maintenance/income payments before a final Court Order is made).
- Property Adjustment (adjusting the share of ownership of a property).
- Lump Sum Payments (one party paying the other party a lump sum of money/capital payments in one lump sum or by instalments).
- Periodical Payments (one party paying the other party spousal maintenance/income payments for a specified period or for life).
- Secured Periodical Payments (one party paying the other party spousal maintenance/income payments by investing capital from which the maintenance will be paid).
- Pension Sharing (where the pension fund is split between the parties and paid into separate funds).
- Pension Attachment (where a percentage of the money invested in the pension fund is held for the other party and there is a division of the pension payments and lump sums between the parties when the pension is eventually paid).
The Court has the power to make the above range of Orders.
Property
Often a person’s main concern is what will happen to property particularly the family home. We have therefore focussed below on the various ways in which property can be dealt with. This list is not exhaustive. Please do contact us and we can provide you with specific advice.
Sale and division of net proceeds of sale
- Property – The property is sold.
- Mortgage – The existing mortgage is paid off and therefore the parties are released from liability under the existing mortgage (provided there is enough equity).
- Net proceeds of sale – The net proceeds of sale are split between A and B in accordance with an agreement reached.
Transfer and release from mortgage
- Property – The property is transferred into A’s sole name.
- Mortgage – The existing mortgage is transferred into A’s sole name with the consent of the mortgage company and therefore B is released from liability under the existing mortgage. Alternatively, A re-mortgages so as to release B from liability under the existing mortgage.
Transfer and no release from mortgage
- Property – The property is transferred into A’s sole name.
- Mortgage – The existing mortgage remains in joint names and therefore B is not released from liability under the existing mortgage. A promises to pay the existing mortgage and indemnify B in respect of the mortgage. The mortgage company may need to consent to this. A may undertake to use their best endeavours to release B from the mortgage.
Transfer, release from mortgage and payment of lump sum (buy out)
- Property – The property is transferred into A’s sole name.
- Mortgage – The existing mortgage is transferred into A’s sole name with the consent of the mortgage company and therefore B is released from liability under the existing mortgage. Alternatively, A re-mortgages so as to release B from liability under the existing mortgage.
- Lump sum – A pays B a lump sum in return for their interest in the property.
Transfer, no release from mortgage and payment of lump sum (buy out)
- Property – The property is transferred into A’s sole name.
- Mortgage – The existing mortgage remains in joint names and therefore B is not released from liability under the existing mortgage. A promises to pay the existing mortgage and indemnify B in respect of the mortgage. The mortgage company may need to consent to this. A may undertake to use their best endeavours to release B from the mortgage.
- Lump sum – A pays B a lump sum in return for their interest in the property.
Transfer, release from mortgage and Charge back (deferred interest)
- Property – The property is transferred into A’s sole name.
- Mortgage – The existing mortgage is transferred into A’s sole name with the consent of the mortgage company and therefore B is released from liability under the existing mortgage. Alternatively, A re-mortgages so as to release B from liability under the existing mortgage.
- Legal Charge – B has a Legal Charge against the property for a percentage or fixed amount. The Charge will be exercisable by B on certain trigger events. At the time of the trigger event, A could either raise money to pay the amount of the Legal Charge or the property would have to be sold and the Legal Charge paid. A could pay B part of their interest with an immediate lump sum and the remainder secured by way of a Legal Charge.
Transfer, no release from mortgage and Charge back (deferred interest)
- Property – The property is transferred into A’s sole name.
- Mortgage – The existing mortgage remains in joint names and therefore B is not released from liability under the existing mortgage. A promises to pay the existing mortgage and indemnify B in respect of the mortgage. The mortgage company may need to consent to this. A may undertake to use their best endeavours to release B from the mortgage.
- Legal Charge – B has a Legal Charge against the property for a percentage or fixed amount. The Charge will be exercisable by B on certain trigger events. At the time of the trigger event, A could either raise money to pay the amount of the Legal Charge or the property would have to be sold and the Legal Charge paid. A could pay B part of their interest with an immediate lump sum and the remainder secured by way of a Legal Charge.
Sale, release from mortgage and Charge back over replacement property (deferred interest)
- Property – The property is sold.
- Mortgage – The existing mortgage is paid off and therefore the parties are released from liability under the existing mortgage (provided there is enough equity).
- Replacement property – A purchases a replacement property (with or without a mortgage).
- Legal Charge – B has a Legal Charge against the replacement property for a percentage or fixed amount. The Charge will be exercisable by B on certain trigger events. At the time of the trigger event, A could either raise money to pay the amount of the Legal Charge or the property would have to be sold and the Legal Charge paid. A could pay B part of their interest with an immediate lump sum and the remainder secured by way of a Legal Charge.
If you are looking for legal advice on divorce or any other aspects of marriage, civil partnerships or child related issues and wish to arrange a free consultation please telephone us on 01323 727321 or complete our contact form below – we will ensure you speak to the right lawyer for your circumstances.
Please note the above is for information purposes only and is intended to be a short summary. It should not be treated as a comprehensive guide and should not be acted on without qualified legal advice.
