Case study Divorced with joint mortgage

Coffeecreamer1

New Member
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4
Scenario below:
Mary and John had 2 children and bought their house together in 2006 for 316k. John contributing 11k and Mary 15k towards deposit. 11k was borrowed from John’s parents and Mary’s 15k was a gift. John’s loan was paid back to his parents within 2 years buy the couple. So technically John contributed 5.5k and Mary 20.5k.
10years later John and Mary separated and John decided to move out from jointly owned house with the outstanding tracker mortgage of 240k. At the time the value of the house was the same as the outstanding mortgage.

John was living in a rental accommodation and wanted Mary to buy him out so he can buy his own house. Mary wasn’t in a position to buy out John for almost 5 years due to low income in the eyes of EBS. Mary continued making full mortgage payments on her own since the day of separation. She also paid for renovations after the couple separated.

There was never any maintenance involved as the kids lived equal amount of time between the 2 households and their expenses split 50/50.

The 2 got divorced 3.5 years later. John signed divorce papers renouncing all and any interest/claims to the family home in the past/present/ future. And forever waiving, forfeiting and renouncing claims/rights/privileges he may have had or would have on the future. He was happy signing this agreement as he wanted Mary to get mortgage in her name quicker and then move on buying his own property and he was also anxious to get divorce ASAP for his private reasons.

Mary’s income went up and she’s ready to take the mortgage into her own name. However now John is realising that there is equity in the house he renounced all rights to and that the new mortgage will be huge due to increased property prices and his age of 46. What are John’s rights here? Is he entitled to the waived share of equity in the divorce??
Value of the house is around 300k.
outstanding mortgage 210k.
Property has a judgement against it from an old debt that John was not paying of almost 20k. John now wants Mary to take over that debt as well as his share in equity as he thinks the situation is not fair on him.
Would Mary have to give John 45k ? Considering Mary was paying 10k per year herself for 4.5 years and reduced the outstanding mortgage to 210k from 240k.

Any insight would be much appreciated
 

Brendan Burgess

Founder
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44,659
John signed divorce papers renouncing all and any interest/claims to the family home in the past/present/ future. And forever waiving, forfeiting and renouncing claims/rights/privileges he may have had or would have on the future.

it just stops there.

In 2019 John freely entered into an agreement to renounce his interest in the house.

End of story.

He can't now say - "Well house prices have gone up and you have repaid some capital, so there is now some equity in the house."

Brendan
 

Coffeecreamer1

New Member
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4
That’s what I thought too.
How about CAT for Mary? Would she have to pay something on John’s part of equity?
 

Thirsty

Registered User
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3,454
How about CAT for Mary?
Not in the context of a divorce settlement.

Two things to add to this.

In 2006 many (possibly most) married couples went for a Judicial Separation or Separation Agreement. Sorry I misread post, I see they separated much later than that. Below is still valid though.

If they had a Judicial Separation, and subsequently applied for divorce, that can be an opportunity to relook at the settlement terms. Having said that, you'd need some grounds e.g. non disclosure, sudden acquisition of assets after separation that sort of thing.

The other aspect is the obligation to maintain never goes away.

Should John or Mary (heaven forbid) become ill and are unable to work due to ill-health, they can apply to the other former spouse for financial support.
 

Coffeecreamer1

New Member
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4
No judicial separation. There was a separation agreement and then divorce few years after that were the terms were changed and John happily signed them with his own solicitor..
would John or Mary be obliged to maintain even if they re marry?
 

Thirsty

Registered User
Messages
3,454
No the obligation to maintain is removed by marriage.

If John remarries, Mary cannot be applied to for spousal maintenance.
 

Thirsty

Registered User
Messages
3,454
No judicial separation. There was a separation agreement and then divorce few years after that were the terms were changed and John happily signed them with his own solicitor..
would John or Mary be obliged to maintain even if they re marry?
Then I think he is done; he had legal advice & accepted the settlement terms.
 
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