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Mesher order length

Posted by RogerG 
Mesher order length
October 23, 2020 05:09PM

My wife and I split 4 years ago. I moved to what was a buy to let house we previously lived in together. We have two children aged 18 and 15.

I earn circa £43k and she earns about £25k .

My new partner has moved in with me in what was the buy to let, before that I had lodgers for over 3 years.

The main house where ex and children live is worth £630k with about £75k mortgage.
House I live in worth circa £430k and £240k mortgage
Investment property worth circa £105k and roughly £5k Mortgage

All other assets ( persons/ savings etc) roughly equally at £20k each in own names

In principle we have mutually agreed a split roughly 55% for her 45 %that would mean she can remain in what was the family home but the issue I have is that she wants to delay a Meshe order/ release of any equity until she is retirement agee so about 15 years. The children will be considerably older and probably left.
I pay child maintenance currently.
Would a judge allow a mesher order to run to a 15-year length? As I understand there would also be tax to pay at 10 years as the portion of the property that would be "allocated" to myself would be in trust and subject to tax in 10 years?

I also will struggle to get a mortgage on my own salary for the house I live in, without the equity released from the family home.

Any thoughts appreciated? I a mind to stick the form E's in with what we have agreed and hope the judge says all fine but Mesher order is only for 5 years, not 15 .. but its a bit of a gamble!

Re: Mesher order length
October 23, 2020 05:36PM
Unless you agree otherwise (which I would not recommend) the usual triggers for a Mesher order are:-

1. The youngest child ceasing to become dependent (often when he/she finishes a first degree but sometimes upon finishing secondary education).
2. Your ex wife dies, remarries or (often) cohabits with someone for a period of time (rarely less than six months).

In most cases there is no good reason to agree trigger events which are later than these. Of course, you could agree a later trigger if there was something in it for you but if there wasn't you would be better to stick to the conventional triggers (which is almost certainly what a court would order).

I am not a tax lawyer or accountant but if, say, you have a charge upon a property for a percentage of its value and you are in a position to realise that charge when the trigger event occurs there is not usually any tax payable. It is much like a mortgage lender calling in a mortgage. Tax laws can change over time of course but as they stand at the moment I believe that is the position.
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