Mesher Order

Hi
long time lurker, now ready to seek advice!

divorce currently going through courts- in the 20 week wait between application and conditional order at which point I know finances need resolution.

background - married 20 years, separated 18 months. House is in my name only, as is mortgage and every single bill. I'm the higher earner (or was pre separation, no idea what he earns now, and my income has gone down)

It's a shared ownership property so only own 70%.

2 children 10/16.
Mortgage has c10 years to run.

We agreed neither could afford a laywer so were trying to get through divorce without this cost. I've paid court fees, I've applied.

I offered 20% of house value when sold after kids had finished Education. Ex- Partner has come back saying they have taken legal advice and want to counter offer 10% on divorce and 10% when youngest turns 18.

I could probably get to 20% when youngest is 18 but have zero idea where I'm supposed to find 10% next spring?

Any thoughts on what I can say or do next?

As the higher earner, I think his offer to you is very generous to be honest. I'd scramble to find that 10% because you almost certainly won't get a Mesher Order in court, let alone such a one sided equity split.

Thanks ECM3419.

It's really helpful to hear this viewpoint.

I have literally no idea how to raise the money!

You say you have no idea what he earns. This is something that should be declared as part of full financial disclosure ahead of negotiations. Are there any pensions to consider? Is he in anew relationship? Are you?

The priority in all this is secure and stable housing for the children. It is possible to offset pension entitlement against equity. If a Mesher is the only option, you need to think carefully about whether you'd be left with enough to rehouse when the charge is triggered.

You need to explore all realistic options for raising cash. Speak to a mortgage broker as a start. If you really cannot raise anything, you will need to work together to see how you can resolve the issue of security and stability for the children.

Hadenoughnow

You’ve offered 20% of the value or 20% of the equity you have in it?

You don’t know how much the property will be worth in 8 years time so that is a risk to take into account. You may end up having to sell to pay your ex and not have enough to buy somewhere else.

Is there anything else to split such as pensions or savings?

Nothing else to split- no pensions, no savings, no joint debt.

I fully expect to have to sell in 8 years- the logic being I wouldn't need a 3 bed house at that point.

I offered 20% of the value (of the 70% I own)

No pensions.

I'm not in a new relationship - I don't know about him.

I absolutely agree this is about stability for the children at this point. The 16yr old will (probably) not still be living at home in 8 yrs, and if they are then I'd need them to contribute to Housing costs if I need to rehouse in a similar size property.

There is currently equity in the house, but I don't think I can access it through remortgaging as it's a shared ownership mortgage and I believe that I would have to staircase up (ie purchase the last 30%) before I could have cash and that probably wipes out the equity.