Q. My husband and I have been separated for a while now, and have gone through mediation. We have no kids, both work, and have decent enough incomes. Everything is quite amicable, and we are both anxious to keep things that way. We’ve an apartment in town, and we have agreed that I will remain there and take over the mortgage. I’ve been paying for the last six months in any event. He gets to keep his pension. I might not remain on in the apartment long term, and might be thinking about selling in a few years. What next steps do I need to take?
Dear Reader,
The first thing that you both should do is consult with your solicitors. They will draw up a separation agreement which will form the basis of your agreement going forward.
It is important to note that although you can agree to share pension rights as outlined above, this can only be formally given effect to by a pension adjustment order made as a result of a divorce. Of course, you should still reduce the agreement that you have in writing so that this can be given effect at a later date when and if you decide to divorce.
With regard to the home, you should try and engage with your bank as regards having the mortgage taken over. You cannot have the property transferred into your sole name without the consent of the bank.
Quite often the bank will need you to, essentially, take out a new mortgage. This can sometimes be difficult in circumstances where there is now only one income (i.e. yours) paying the mortgage.
Often, sadly, people in the process of separating are prevented from rearranging ownership owing to the banks refusal to allow the transfer of the mortgage into sole names if you are unable to raise a new mortgage on your own income. This is less than ideal, as you will not own the property and your spouse will remain liable for the mortgage should it fall into arrear. It may also affect his ability to raise finance on the same.
Depending on your own circumstances, and the equity that you may have in the home, an option the most appropriate course of action might be to arrange for the sale of the property now. Alternatively, your spouse might agree to remain on the mortgage until such time as you are in a position to sell the property.
You should consult with your solicitor ,and if possible, your financial advisor, as regards your next steps.