Mortgage and divorce

elizunia87

Looking for some advise.
My husband and I are waiting for mediation. We have 1 year old child and mortagage in Dublin.
What usually happens with the house? Its only 2 years so far on mortgage, only 800/month. My husband wants to give up on the house but do i have any chances bank will give me the mortgage on my name? With job paying little (2k) starting now and a child?


What can i do to keep the house?
Can my husband be forced by Court to pay half?

XsApollo

Depends on his means and your means.
The fact you have a child together and are married means he doesn’t really have a hope of giving up the house.
Children’s welfare is the number one priority in a divorce.
No judge is gonna let him give up on the house when there are kids involved as it’s the kids home.
Get legal advice.

elizunia87

The question is will i need to pay the full amount of the mortgage while he is still reliable for the loan and then once it comes to sell maybe in 18teen years he will get the sell value of the house? He said he will not pay mortagge as he will have to pay rent. I am waiting for mediation now.
I dont mind to pay full amount of the mortgage but i wouldnt like him to get the money from sell. And i know the bank will not write mortgage just on my name.

When couples split, either party can seek a property adjustment order from the court requesting the sale of the property and the Court will consider it. If there is enough equity in the property that selling it would give each party enough for a fresh start, it is within the Court's power to order the property to be sold. It can be seen as unfair to tie one party into a position where they will be stuck renting / unable to apply for a new mortgage or buy another home for themselves the next XX amount of years because they are still legally tied to a property / mortgage on a house they no longer live in.

While the ages of the children would be considered, children move houses all the time, so would not necessarily be be a barrier to ordering a sale. Especially a one year old with no emotional attachment to a house, school, etc.

However, in this case - they are unlikey to have built up much equity after only two years, so the most likely outcome is that (a) one party will buy the other out or (b) the Judge orders one party to leave the house and pay maintenance and towards mortgage.

How much they will be ordered to pay will come down to income and outgoings. Both parties will have to supply detailed affidavits of means.

When it comes to the Banks - they will only remove one party from a mortgage, where the other has sufficient income to take over the full mortgage on their own (subject to the usual lending rules).

elizunia87

elizunia87 wrote: »

The question is will i need to pay the full amount of the mortgage while he is still reliable for the loan and then once it comes to sell maybe in 18teen years he will get the sell value of the house? He said he will not pay mortagge as he will have to pay rent. I am waiting for mediation now.
I dont mind to pay full amount of the mortgage but i wouldnt like him to get the money from sell. And i know the bank will not write mortgage just on my name.

No. He would not get 50% of any future sale.

He would only get a percentage based on what he had contributed.

elizunia87

[Deleted User] wrote: »

No. He would not get 50% of any future sale.

He would only get a percentage based on what he had contributed.

Thank you. Thats what I wanted to hear. House is in negative enquity and my husband will not make enough money to pay his rent and mortgage.
We are now on the top of the mediation list so soon it should be sorted out.

Do you think the court will ask to sell the house and ask me to move to renting place with my Son?

elizunia87

elizunia87 wrote: »

Thank you. Thats what I wanted to hear. House is in negative enquity and my husband will not make enough money to pay his rent and mortgage.
We are now on the top of the mediation list so soon it should be sorted out.

Do you think the court will ask to sell the house and ask me to move to renting place with my Son?

No, absolutely not. Not even a 0.0001% chance of that happening.

The only time I've seen it happen that a house was ordered to be sold was when both parties were in well paid, full time employment, and there was a large amount of equity in the house. The equity once divided would have given each party enough for a deposit on seperate homes and on their incomes they could apply/pay new mortgages on their own.

But make sure you have your financial records up to date and ready, as in mortgage statements etc, and keep them that way so if down the line you have to prove his contribution, you can do so.

Best of luck in mediation. I would also suggest that if mediation is successful, you get whatever is agreed rubber stamped in court.

elizunia87

[Deleted User] wrote: »

No, absolutely not. Not even a 0.0001% chance of that happening.

The only time I've seen it happen that a house was ordered to be sold was when both parties were in well paid, full time employment, and there was a large amount of equity in the house. The equity once divided would have given each party enough for a deposit on seperate homes and on their incomes they could apply/pay new mortgages on their own.

But make sure you have your financial records up to date and ready, as in mortgage statements etc, and keep them that way so if down the line you have to prove his contribution, you can do so.

Best of luck in mediation. I would also suggest that if mediation is successful, you get whatever is agreed rubber stamped in court.

Thank you. This is really helpful.

elizunia87

Another question is what will happen when the Court say the house stay with me for example but my ex does want to take his name of the mortagage?
I know that when i will apply to have to house only on my name the Bank will not agree. We have a baby and I am very worry.

What are my options?

XsApollo

Your ex can’t just take his name off the mortgage.
He is liable for the debt as he signed for it.
The only way he can get off the mortgage is if you or someone buys him out.

pacleary

I strongly suggest you get free legal advice on this. Check with a Solicitor, most will give you a free consultation at the beginning and give you some advice on this. Call a few and ask if you can have a free Consultation. Some will charge, so check that in advance.

elizunia87

elizunia87 wrote: »

Another question is what will happen when the Court say the house stay with me for example but my ex does want to take his name of the mortagage?
I know that when i will apply to have to house only on my name the Bank will not agree. We have a baby and I am very worry.

What are my options?

Even if he asked them to, the Courts can't order a bank to remove his name of the mortgage. The only way his name can be taken of it is if the house is sold or when you buy him out or remortgage in your name only. I imagine this is why he wants to push for a sale now. Remortgaging should really be your goal to work towards.

But, you need to have realistic expectations. The Courts have to take your ex's circumstances into consideration too and he has to be left with enough income to be able to house himself and pay his own living costs after the separation. If his means are insufficient and he can't afford to pay his rent, bills, and also contribute towards child maintenance, and half the mortgage, then he won't be ordered to.

If I was in your shoes and believed the most likely outcome was going to be me living in the house with my child, and paying the full mortgage myself, I would ask the courts to make an exclusion order which would basically give me sole occupancy and means the ex could not just move back into the house at any time.

elizunia87

[Deleted User] wrote: »

Even if he asked them to, the Courts can't order a bank to remove his name of the mortgage. The only way his name can be taken of it is if the house is sold or when you buy him out or remortgage in your name only. I imagine this is why he wants to push for a sale now. Remortgaging should really be your goal to work towards.

But, you need to have realistic expectations. The Courts have to take your ex's circumstances into consideration too and he has to be left with enough income to be able to h himseouself and pay his own living costs after the separation. If his means are insufficient and he can't afford to pay his rent, bills, and also contribute towards child maintenance, and half the mortgage, then he won't be ordered to.

If I was in your shoes and believed the most likely outcome was going to be me living in the house with my child, and paying the full mortgage myself, I would ask the courts to make an exclusion order which would basically give me sole occupancy and means the ex could not just move back into the house at any time.

I dont mind to pay full amount of mortgage as it is not that much but of course it will be hard for a single mom with baby and no help of family ( we are foreigners). And i dont want him to have rights in 20 years when it comes to sale.

anyways can i apply for maintance to the District Court now as he said he will be paying 20e a week towards a baby while he is still living here? He needs around 4 months to move out and mediation should begin next month.


Thank you for any help. I am making notes whatever can help.

It is possible to apply for a maintenance order from a spouse while still living at the same address, but if you're about to begin mediation I would discuss this with the mediator or a solicitor first.

You will be a couple of months waiting on court date anyway, so realistically you won't get a date before he leaves anyway.

What he would be entitled to from any future possible sale of the house would be decided by the Courts based on what he contributed towards the deposit/mortgage payments as previously discussed.

listermint

elizunia87 wrote: »

I dont mind to pay full amount of mortgage as it is not that much but of course it will be hard for a single mom with baby and no help of family ( we are foreigners). And i dont want him to have rights in 20 years when it comes to sale.

anyways can i apply for maintance to the District Court now as he said he will be paying 20e a week towards a baby while he is still living here? He needs around 4 months to move out and mediation should begin next month.


Thank you for any help. I am making notes whatever can help.

How is the house in negative equity only two years into the mortgage on 2021 when house prices are nearing the peak of the boom ?

elizunia87

I am not sure if i used a proper word. We got mortgage two years ago. Loads of left to be paid

elizunia87

elizunia87 wrote: »

I am not sure if i used a proper word. We got mortgage two years ago. Loads of left to be paid

Yes, I understand that?

elizunia87

listermint wrote: »

How is the house in negative equity only two years into the mortgage on 2021 when house prices are nearing the peak of the boom ?

I gues house rise now in the value but there is mortgage on that. Not sure if i understand this. Should not be used this term by me.

Considering you only got the mortgage 2 years ago, and it's 800 per month, I'm gonna assume the house cost around (give or take) 200k-ish.

Assuming you got a mortgage of 180k at 3.5% over 30 years, then you currently would owe the bank about 172k. So you've only really paid off 8k of the loan.

Neither of you really have a lot of equity in the house. As far as I know, to take over the house on your own, you'd have to be in a position wherein you'd get a mortgage on your own for the same amount.

elizunia87

More less its true. And i dont have enough income to ask the Babk to write this on my name and too expensive to go for rent with a small baby. The amount per month is really good deal for a single person now.

listermint

elizunia87 wrote: »

I am not sure if i used a proper word. We got mortgage two years ago. Loads of left to be paid

Outstanding mortgage amount.

Your house is not worth less than the mortgage or outstanding amount so you are not in 'negative equity'

elizunia87

listermint wrote: »

Outstanding mortgage amount.

Your house is not worth less than the mortgage or outstanding amount so you are not in 'negative equity'

Thank you for the clarification.

elizunia87

elizunia87 wrote: »

I gues house rise now in the value but there is mortgage on that. Not sure if i understand this. Should not be used this term by me.

If you were to apply to remortgage the house, (when you can afford to) you would only need to look for a new mortgage in an amount that would be enough to cover the balance owed on the existing mortgage at that time, (eg estimated at €172k today) plus whatever percentage the courts decide to award your ex for his share.

You won't have to remortgage for the full current market value of the house.

elizunia87

[Deleted User] wrote: »

If you were to apply to remortgage the house, (when you can afford to) you would only need to look for a new mortgage in an amount that would be enough to cover the balance owed on the existing mortgage at that time, (eg estimated at €172k today) plus whatever percentage the courts decide to award your ex for his share.

You won't have to remortgage for the full current market value of the house.

I understand. But knowing that the Bank is allowing for 3.5x salary i have no chance. How about Rebuilding ireland? Is that something i could look at in the future?

Confused11811

If your marriage does break up and your husband can't or doesn't continue to pay the mortgage. Your bank may offer you the option of Mortgage to let , details here - https://mortgagetorent.ie/

I know a couple who split and it wasn't financially viable to continue paying the mortgage and rent on the ex husbands new place. As a non preforming mortgage the bank sold the mortgage to Mars Capital with the recommendation from the bank the house would be suitable for the mortgage to rent scheme. The process is under way and it'll give the best financial outcome to the end of the marriage. Yes the couple will loose the house , but the lady and children will remain in the home as lifetime tenents of a council or housing agency. They will pay an extremely small rate of rent.

Your a long way away from any of that. Hopefully the marriage counseling and mediation will work. The last year must have been extremely hard on you both with a new child and dealing with the Covid-19 stuff we've all had to deal with. Hopefully you can work things out, I can't imagine how hard dealing with a new child with all that's happened the last year or so must have been on you both.

It's easy for me to say but try not to worry about financially stuff at this point, it's only adding to what must be a very stressful time. You won't be homeless , be sure of that.

Put your efforts into better things.

elizunia87

Yes that was very difficult year but we got an amazing gift: our Son.

Thank you all of you for amazing support and great advises!

RStoneX

elizunia87 wrote: »

I have just applied for Job Seaker and exceptional support welfare. I applied for Ncs scheme to put my Son to creche. I have 3 interviews for job and one meeting with solicitor scheduled for next week.
What else I can do?

Get a grip and get your story straight.

How could you apply for jobseeker [seaker in your words] when you have an income already?!

It was only 14 days ago you wrote: "do i have any chances bank will give me the mortgage on my name? With job paying little (2k) starting now and a child?"

Giving up work to live off the welfare is not the answer. The gov won't pay your mortgage sweetheart.

elizunia87

M

Elizunia87, I am confused by your latest post, I too was under the impression that you were already in employment and could afford to pay the full mortgage yourself? Has that changed?

You are correct that you will qualify for One Parent Family Payment in 3 months once you are no longer living at the same address as your husband. But you won't get any assistance from Social Welfare with the mortgage payments.

I also advise you to contact TREOIR and OneFamily.ie who can advise you and guide you in the situation you now find yourself.

glen123

Deleted User wrote: »

Elizunia87, I am confused by your latest post, I too was under the impression that you were already in employment

The first post said "With job paying little (2k) starting now"....I wonder if she thought she'd have a job but the job fell through?

glen123

glen123 wrote: »

The first post said "With job paying little (2k) starting now"....I wonder if she thought she'd have a job but the job fell through?

Maybe that's what happened.

elizunia87

Thank you for the post.

Yes i had a job and had to leave after 4 days due to lack of childcare. (13 h shift 3 days a week).
Husband left and no, I am not searching for someone to pay my mortgage. I have solicitor booked for Wed about the house.

I asked Modartor to delete my thread.

Thank you everyone for help

XsApollo

If your husband has a paying job and depending on his means he won’t be allowed leave you with nothing.
Wait for the solicitor advice and read up on family law.
He might be in for a rude awakening.

Good luck.

elizunia87

XsApollo wrote: »

If your husband has a paying job and depending on his means he won’t be allowed leave you with nothing.
Wait for the solicitor advice and read up on family law.
He might be in for a rude awakening.

Good luck.

I will thank you. He gave 50e meintance 😀

bunglemark2

Maybe I'm late to this thread. Divorce has just been finalised. The judge decided she stays until the lad is 19 (another 5 years and a bit). At that point, the house will be valued and she has first option to buy out my interest and if she can't, i have the option to buy her out. If neither can afford, the house is sold and proceeds split. In the meantime, I have to move out in a month and either rent or move back in with elderly parents (not ideal of course but what can I do - rental prices are ridiculous).

If I were to look for a mortgage in my own right, am I right that I need min 20% deposit on any property ? I will only get 80% LTV on the property ? Are there exceptions to this depending on when you apply for an exception, and what are they, does anyone know ? Does the future positive equity - could be 200K+ - count towards a mortgage application now ?

houseyhouse

https://www.boards.ie/discussion/comment/118152168#Comment_118152168

If you were to give up your interest in the house you have, you could become a first time buyer again. This is a rule that exists only in the case of divorce so you have to be sure you go through the process correctly to qualify. You would lose your share of the equity in the house though.

Otherwise, yes it’s usually 20% deposit. There are exemptions. As far as I know these are easier to get at the beginning of the year because banks get an annual limit on them. I don’t believe your existing equity would count towards your mortgage now because it’s not money you can access. What if the property market dropped before you could sell and the equity was gone?

bunglemark2

Thanks for the reply. I wasn't aware I could give up interest in the house although the judge made the order for the future valuation, and buy-out options in his ruling, so if that's the decision, I'm not sure I could change that.

When I spoke to a bank about the possibility of a mortgage in my own right. I was told that because both names are on the mortgage, the banks will consider the event that one or other reneges on paying it, so we both get viewed in the light of ability to pay the full mortgage (on the current house) as well as the ability to repay a new mortgage. I will have to basically show I can save over 2K per month for the next six months at least before they could consider an application, even then it's not guaranteed I could get approval.

Renting somewhere now, apart from the extortionate rents if I could even find an affordable place, leaves zero possibility to put money away.