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My wife and I are separating and will divorce in due course.

Customer Question
Hi Pearl, My wife...

Hi Pearl, My wife and I are separating and will divorce in due course. I bought my house in 1999 with help from my parents who gave me some money. We agreed and signed a Declaration of Trust giving my parent a share of 75% of the equity as this represented the amount they gave me for the deposit. Roll forward 8 years and my now wife moves into the house. We married in 2010 and have two children of 5 & 2. In the last 4 years I have personally paid £45,000 cash and have two £15,000 loans so we could extend he house. My wife contributed £10,000 to the extension.

Lawyer's Assistant: Because family law varies from place to place, can you tell me what state this is in?

My questions are - 1. Is the DOT with my parents still going to be valid in the event of divorce? If my father chooses to execute the DOT upon sale of the house will his share be protected? 2. Is the value of the house when my wife moved in taken into account when dividing the equity? 3.Is the active increase in value, based on my recent financial input and that of my wives' taken into account when apportioning the equity?

Lawyer's Assistant: Have you talked to a lawyer yet?

Yes , in Surrey, England. Not yet but have taken some advice on the DOT

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

No thanks, that's it (I think)

Submitted: 8 months ago.Category: UK Family Law
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Customer reply replied 8 months ago
I should add that I have alway paid the mortgage from my personal bank account and the extension payments were all made from my personal bank account (except of course my wife's payment which was for a kitchen). I pay the bills for the house (council tax, utilities, TV licence, insurances etc) and contribute £450 to my wife towards nursery fees for my daughter. My wife pays for shopping, balance of nursery fees, my son's school clubs, and other bits and pieces and we pay out about the same amount of money each. We are also earning about the same at the moment, though as I am heavily commission based some months she will be earning up to £500 gross more than I. We have agreed that we will share the children equally during the weekdays and alternate weekends.
Answered in 14 hours by:
9/22/2017
Solicitor: frantzgregory, Lawyer replied 8 months ago
frantzgregory
Category: UK Family Law
Satisfied Customers: 879
Experience: Principal at Gregory & Co Lawyers
Verified

Hello

When relationships breakdown there are 3 separate processes involved. The divorce itself, children matters and ancillary relief (financial).

In each case an application is normally made to the court. When the court is asked to decide on financial matters everything is considered in the marital pot at the time of the application and decided on needs. The family courts arent bound by pre existing agreements and the needs of each party are considered. The starting point is 50 50 and then the principle of needs is applied.

Ofcourse couples can agree on the split themselves and get thier solicitors to formalise with a consent order from the court without the need to go to court.This is always the best option.

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Solicitor: frantzgregory, Lawyer replied 8 months ago

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Customer reply replied 8 months ago
I understand how the courts look at the needs but I had specific questions relating to the declaration of trust which was agreed with my parents 8 years before cohabiting and 11 before marriage. How is that legal document considered in the divorce? You also haven't addressed how the equity is calculated as I owned the house well before marrying or children. Is there a proportion of equity that comes to me as the value increased in the 8 years before co habitation or does the fact I have children overrule this?
Solicitor: frantzgregory, Lawyer replied 8 months ago
The family court may consider the DOT but it is not obligated to and it is unlikey to consider it and more so if your wife challenges it. Like I said equity is considered as a starting point on the basis of 50% 50%. Then taking into account the needs of the children and the wife it may end up being 40% 60% and in some cases 30% 70%.The fact your wife is working is considered as her needs would be less than if she was a house wife. It is irrelevant when you owned the house as the court considers everything in the marital pot from when it is asked to consider AR based on each parties need. You will not get an increased proportion because you owned the house before cohabitation.
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Solicitor: frantzgregory, Lawyer replied 8 months ago

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Solicitor: frantzgregory, Lawyer replied 7 months ago

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Solicitor: frantzgregory, Lawyer replied 7 months ago
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Category: UK Family Law
Satisfied Customers: 879
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Experience: Principal at Gregory & Co Lawyers

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