Lump sum following divorce

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cathy322

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Post by cathy322 » Sun Jul 12, 2020 5:15 am
I took out an IVA in Feb this year (not very long I know). The debt I owe is £15k. I pay £58 a month. Total to pay back something like £3600 as it stands currently.

Divorce has meant my ex husband will be sending me £15k as a lump sum around November - December this year.

My understanding is that this will be classed as a windfall? Even though the money is to help me and the kids get up again and get a car (mine is worth £300 and falling apart. I need a car for work).

Anyway. Assuming they can legally take this, can I negotiate a sum? And if so, what is likely to be accepted?

Also, I owe the kids money for their accounts. Should my ex send me £12k and the other £3k to the kids bank and will the IVA accept that £3k isn’t mine?

Happy to answer any questions. Thank you for any help.

Foggy

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Post by Foggy » Sun Jul 12, 2020 8:07 am
First we need to know where this lump sum is coming from and why ? Is it from the sale of a house you jointly owned ( or he is buying you out of) ? Is it court ordered ? If, so, who are the named beneficiaries ? Or, have you simply agreed between you that he will give you this lump sum ?

There are numerous possibilities, depending on the answers to the above questions.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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cathy322

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Post by cathy322 » Sun Jul 12, 2020 8:22 am
Thanks. He is buying me out of the house. I know his lump sum will be coming from a loan and he will keep the house until the market picks up again and then sell and keep that equity.

We have agreed through the solicitor discussions but nothing is drawn up or signed just yet. The court won’t be involved.

Names beneficiaries? I’m not sure what you mean. When we draw up an agreement I guess it’ll be my name on it? Unless I add me and the children?

Foggy

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Post by Foggy » Sun Jul 12, 2020 8:44 am
OK --- if he is buying you out then the IP will be informed as there should be a restriction on the title (but that might not have been dealt with yet as the IVA is so new). Exactly how was the house treated in your proposal? Do you have it listed as an asset? In which case the money will be treated as an asset and payable into the IVA. The IP will be expecting this amount to be equal to 85% of your share of the equity. You may be able to negotiate keeping some.

How well do you get on with the ex ? Would it be possible that he would 'gift' you an amount to pay off the IVA by way of a full and final offer, based on remaining payments, plus 12 months --- something like £3700. Once the IVA is done and dusted (assuming the F&F is accepted), you can both deal with the house without worrying about the IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

cathy322

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Post by cathy322 » Sun Jul 12, 2020 9:57 am
Our marital home is in his name only (I removed mine so I could get myself a mortgage) so that house wasn’t listed as an asset and to be honest I didn’t know if he would sell it before the Iva was up so I had no way of knowing.

Is he allowed to pay off my IVA for me?

Is he allowed to put money in the kids account without them taking it away from them?

I was thinking he could buy me a car but then I don’t want it to be fraudulent in anyway. I’m not wanting a cruise :-/ I need a car and gas heating (using coal and so expensive).

Foggy

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Post by Foggy » Sun Jul 12, 2020 10:28 am
Ah --- that makes a difference -- equity release-wise. But a sum of that size would be seen as a windfall. So --- in essence --- he is giving you a cash lump sum 'out of the goodness of his heart'. There is no reason why he should not divert some of his 'generosity' to his children and pop some money in a building society account in their names. You can be trustee of these accounts, but they must be in the kids names, so the money is actually theirs --- and it should go direct from the ex to the kids accounts, not through your bank. It should alsdo be a reasonable amount -- not something silly like half each --- that would be seen as a device to deprive creditors. I don't suppose your IP needs to even know.

He could pay off the IVA for you as part of a full and final offer, based on remaining payments. All the IP would need to know would be to verify that the money is, indeed, from a third party as well as ID of that third party, and that it is being gifted to you for the purposes of paying the F&F. Again it will then, if the offer is accepted, have to pass from his account to the IPs account directly. After the IVA is formally completed ( a few months after the F&F payment is made ) whatever happens next is of no interest to your IP.

These are just my own musings and are merely possibilities --- you really should take expert advice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

cathy322

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Post by cathy322 » Sun Jul 12, 2020 10:38 am
Thanks foggy.

Ok. So really all I need to do is say to Payplan that my ex is willing to pay off my remaining IVA amount as a gift.

Say that’s £4K.
Kid no.1 £1.5k
Kid no.2 £1.5k

Can he gift me a car? Would they even need to know? And can he get me gas installation? No money will go near me it will go directly to the plumber

Foggy

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Post by Foggy » Sun Jul 12, 2020 11:11 am
Sun Jul 12, 2020 10:38 amcathy322 wrote:
Thanks foggy.

Ok. So really all I need to do is say to Payplan that my ex is willing to pay off my remaining IVA amount as a gift.

Say that’s £4K.
Kid no.1 £1.5k
Kid no.2 £1.5k

Can he gift me a car? Would they even need to know? And can he get me gas installation? No money will go near me it will go directly to the plumber
If the IVA is closed with a F&F then it matters not what he does with any money afterwards.

I was going to mention the gas installation ..... remember the recent announcement by the Chancellor about Green Home Deals --- from September the government is intending to offer grants for things like heating and insulation .... might be an idea to see what that is all about, before splashing out on the heating yourself.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

cathy322

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Post by cathy322 » Mon Jul 13, 2020 10:57 am
I could receive cash from my ex?

Foggy

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Post by Foggy » Mon Jul 13, 2020 11:36 am
Mon Jul 13, 2020 10:57 amcathy322 wrote:
I could receive cash from my ex?
A cash gift over £500 should be declared and paid in as a windfall.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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