Savings during Separation?

anon0001

I'm in the early stages of a separation - although the process started last year. My wife and I have exchanged statements of means.

Any long-term family savings have been built up by me. But in recent weeks she is looking into a car loan, home improvements (already made some purchases - presumably under the assumption that I will be forced to leave the home) and returning to further education. If she was to proceed with all these, there would be expenditure of tens of thousands of euros. At a time when I know I'll struggle to rent a house and pay maintenance.

Her income is modest, and she has never put any funds aside. If she makes financial commitments such as these now, am I on the hook for them when it comes to maintenance?

If so, am I now free to blow all the savings I've put aside over the years? Up to now I've been very careful not to touch savings, under the assumption that they need to be split between me and my wife - i.e. they're not just mine.

FishOnABike

You don't say if you have children. That's one of the most important considerations. Courts will put children's welfare above that of you or your wife.

Can you both agree terms for a deed of separation and use that as the basis in applying for a divorce by consent? Given the length of court waiting lists I don't see any advantage in applying for a Judicial Separation and then applying for Divorce, possibly doubling the legal costs.

FishOnABike

I don't think either of you dissipating joint assets or taking on financial commitments that are individually unsustainable would be appreciated by the Court.

Senature

I might be making assumptions here but surely if your wife has a modest income and children the bank will not grant significant loans to her individually? I presume you would not be signing for any of these jointly.

anon0001

https://www.boards.ie/discussion/comment/118610135#Comment_118610135

I believe she can obtain credit for some of the spending, and the education need not all be paid now - i.e. it can be an ongoing commitment to the educational institution, with only a small portion paid up-front. Maybe she would have trouble getting credit for both car loan and home improvements. But I would be pretty sure she can get at least one of them, if not both.

Completely correct though, I wouldn't be signing or supporting this.

anon0001

(Post below was posted earlier, but I asked for it to be deleted so I could repost it anonymously)

There are children. We have not yet sat down together with our solicitors. 

I had planned and hoped for an outcome that would have left us with enough to run two households, with shared custody of the children. It would be tight but doable. But reading between the lines of what you're saying, my wife can make any financial commitments she wants now, and I'll be forced to cover these on top of whatever she and the children are going to need to live? I don't earn enough to run a house myself, contribute to hers/ours, plus cover what may turn out to be her large debts.

Edit: I just saw your second post above. A court might not appreciate her spending, but as you say, their overriding concern will be for her and the childrens' welfare. So in effect, she;'s free to splurge?

FishOnABike

<MOD SNIP>

I would think the opposite. I think anyone recklessly entering into financial agreements they foreseeably may not reasonably be able to honour would not be viewed favourably by the Court.

e.g. necessary house maintenance and repairs - ok, unnecessary expensive remodelling - not ok. Replacing an old, unreliable car with a newer, more reliable car - ok, replacing a reliable, perfectly serviceable car with a new upmarket car - not ok.

I think anyone being financially reckless or loading their expenses will not be viewed favourably, when any reasonable person can see everyone will have to adjust to a lower standard of living.

Your children's welfare is the most important thing. Unless circumstances allow both you and your wife to establish new homes, your children will, in all probability, remain in the family home with their primary carer. This has traditionally been their mother, but not always so.