Separating Couple Rights & Entitlements

S

St. Bernard

Registered User
Messages
149
Hi All

Looking for some advice on what I can do in my situation.


My wife and I are separating, we have 2 kids. Our house (Jointly Owned) is in negative equity by approx 90K. No savings. No other outstanding loans.1 car.


Me: Full time employment annual salary 42k per annum
Wife: Stay at home mom. Illness Benefit 9.5k per annum


Obviously we want the best for our kids but it will not be possible to live in the same house. I can’t afford to pay a mortgage (currently €1,200 pm) and rent and maintenance. As my wife is not working and will not be in a position to go back to work, as our youngest is only 5 months old and oldest not yet in school.



Anyone have advice on how to get through this. What rights will I have to our Kids and Home?





I am aware staying together is one way but this is not possible.





Thanks in advance.

SB
 
"Anyone have advice on how to get through this. What rights will I have to our Kids and Home?"

Practically speaking - if you cannot stay together, then one of you moves out and one of you stays in the house. Where does a person go? Stay with a friend, home to family, share a house?

Other than that, stay civil and both of you need to work hard at respecting the other person's point of view.

mf
 
Yes but if one of us moves out are their any entitelements we can claim seen as we actually have a house but can not afford to pay a mortgage and rent etc.
 
are their any entitelements we can claim
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No. There is no seperating couples benefit, or tax relief (nor should there be IMHO). Of course you could claim rent relief etc depending on what you end up doing.

Your situation is difficult given the negative equity. During the boom it would have been possible to leverage the property via equity release or downsizing.

Having seperated myself, Id advise to work things out as soon as possible to a conclusion. Agree things in writing and remember that you will always be in each other's lives as you have kids. It's not nice, but is sometimes best. For as long as your children are dependents, your finances are going to be entwined.

In terms of rights, try to come to an agreement rather than resorting to your rights. It's better in the longrun for an absent father as your actual rights are not very significant. What's best for the children and workable for both parents is more imporatant than anyone excercising rights.

As for the house, the negative equity is what dictates your options on this. Will your lender allow you sell at a loss? Is that more desireable than paying a mortgage you (both) cannot afford? Could you both move out and rent the property finding more affordable accomodation for both you and your ex? You/She may not like that option, but if the numbers don't add up it is a possible way of avoiding a financial disaster.
 
...no tax relief...
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Not strictly true. There is an additional One parent family tax credit claimable by both parents. Tax relief can also be claimed on court ordered spousal maintenance.
 
I think you should seek legal advice when negotiating an agreement. You should look into civil legal aid. It's a tough situation and one which many many couples find themselves in. Perhaps you could go on an interest only period until your wife goes back to work. And by the way, if the baby is 5 months only, she should be considering returning now anyway
 
Unfortunately separation or divorce can lead to a massive fall in living standards, particularly for fathers who can end up in bedsits etc.

You ask what rights you have to the house, the house is in negative equity so your only 'right' there is to continue to pay the mortgage, presumably the mortgage is in joint names.

Is dividing the house an option?

This is a no win situation but it can be made a whole lot better if people realise that there are no winners and being amicable will to a long way to help ease the pain of it for everybody.

If you have savings enough to cover the negative equity the house could be sold and a house rented by your wife for a lot less than 1200 a month.
 
Thanks all.

No savings im afraid. Dividing the house isn't an option either. We were thinking about removing the wife from the mortgage and I would continue to pay it.


Would she then be entiteled to social housing?


Anybody else have experience in this situation that can advise on what to do.



Cheers
SB
 
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