Implications for division of property assets after divorce

J

Jpmaca

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Hi,
Wife and I recently seperated after a short marriage of 2 years. Will commence divorce proceedings in due course. I'm currently living in Ireland while wife lives abroad in her home country. my question relates to the likely outcome of division of property assets following divorce, including timing of property purchases.
Wife owns a house in her home country purchased several years before we married (property title and mortgage in her sole name): Significant appreciation over the years - current market value approx Eur 800k with a small outstanding mortgage of approx Eur 40k remaining. Mortgage principle was significantly reduced by gifts from her parents and a gift from me.
I purchased a property here in Ireland after we married using my own savings for deposit, and I pay the mortgage entirely (property title and mortgage in my sole name). Current market value Eur 550k, with outstanding mortgage of Eur 375k.
My concern is that as her property was purchased before marriage and my property was purchased after marriage, only my property will be considered a marital asset and her's wont. What will be the likely outcome in a situation like this?
FYI: I have no interest in her property abroad, I'm Just concerned I will be forced to sell mine or buy her out with money I don't have. Divorce will be filed her as I'm resident and domiciled. After the divorce my wife plans to remain abroad in her home country.
 
Will live abroad with mother, stay with me on school holidays (pending agreement).

Important to note both houses are 3 bed properties in areas suitable for families, main query is how is a scenario like this usually interpreted i.e. Divorcing wife is sole legal owner of a valuable house almost mortgage free (which I've already contributed to) but purchased before marriage and I'm legal owner of a less valuable house but with a mortgage - financed by myself completely - purchased after we were married.

Divorce is unlikely to be contested. Wife and I are reasonable people, she has previously stated she has no desire for a share in my property, just maintenance which I'm happy to provide. Just curious / anxious how lawyers/judge would interpret this situation.
 
If you both come to an agreement during mediation then the judge’s role is to approve the divorce. It is only if you cannot reach agreement that the judge will decide. The interests and well being of the child being the most important thing.

So propose to the mother of your child that in order to have a home in both countries you propose she takes the home in her home country and you take the home in Ireland, no money be exchanged and going forward you have no interest in each others home, mortgage, repairs etc. if you are both reasonable it should be straightforward.
 
Thanks, we are both amenable to mediation as we understand a legally contested divorce spanning 2 countries could be financially ruinous. I was looking into the mediation process but also did a bit of reading on the various legal aspects of property division, literature seemed to indicate assets acquired after marriage go into the pot but assets acquired before marriage are exempt - I could be misinterpreting this.
If the property settlement terms in the mediation agreeement determined that I keep Irish property and she keeps foreign property, would a judge be likely to endorse the terms of the agreement. I've read judges can refuse to endorse mediation agreemnts if they feel adequate provisions haven't been made?
Maintenance etc is a separate issue and will be dealt with accordingly.
 
You can set your own agreed terms in mediation. The mediator will help you explore aspects you may not have considered, allow both sides to be heard and work out mutually acceptable arrangements. Mediation will cover maintenance, property, child welfare, housing, schooling, parenting styles etc. It can do it all in a few sessions. The more ye are in agreement beforehand the faster and easier it will be.

Yes judges can refuse to accept the mediation terms, especially if it seems blatantly unfair to one side. That is their job, but if you are both reasonable as you say you final mediation agreement should be approved. Judges are not out to get people but they still have to do their job.

Your solicitor will encourage you to go to mediation. Why not make an appointment and get started.
 
Jpmaca said:
literature seemed to indicate assets acquired after marriage go into the pot but assets acquired before marriage are exempt
Click to expand...
I don't think that this is correct. Certainly from my own experience all assets (and liabilities) owned by either party or jointly and acquired at any time go into affidavits of means. So, in theory at least, everything is in play.
 
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Thanks, that's what I assumed would of been the case, but reading online had me worried about property acquired before and after marriage. Logically if both of us have been provided adequate housing in their respective countries that should be that aspect of divorce settlement resolved but of course you read/hear of horror stories. The thought of having to sell house and go back out into the current housing market fills me with dread
 
There are no hard and fast rules when it comes to divorce and sharingg of assets/liabilities. You'll see people asserting that the starting point is 50:50 but that's not necessarily so - even if all assets (and liabilities) are required to be listed on the affidavits of means. Every case is different and dealt with individually. If you are both generally amenable to negotiating in good faith and constructively (and, especially, prioritising the needs and welfare of your child) then that's a great start. Most problems arise when either or both parties (and/or their legal representation) take a very adversarial and confrontational approach. If this can be avoided then it should help things to be negotiated fairly much more smoothly.

Talk to your solicitor to get advice on the best way to proceed. They may also be able to outline possible realistic outcomes depending on how things go.

It's best to try to keep ownership of and some control over the process by both parties engaging constructively and honestly. Letting a court/judge impose a settlement could be a lottery and they really don't want to do this themselves and will do everything that they can to get the two parties to come to an agreement themselves which the court/judge can then formalise.

Good luck!
 
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@Jpmaca

Your wife’s foreign residence and nationality may come into play here. Judge will need to be satisfied that a fast one is not being pulled on her. Will she have legal representation in Ireland?

Last thing: you’ve talked a lot about assets but not at all about income. They have to be looked at together.
 
Income will obviously be discussed, I was specifically talking about the potential positions that could be taken in relation to division of marital vs non marital property assets. There's no fast one being pulled, the facts are as stated above she nearly owns a more valuable house outright in her home country which she intends to live in. I was curious as to the fate of Irish property as it's my only asset. Maintenance for spouse and child will reflect any income disparity between us. Thanks
 
Seeing as you are only married 2 years though all assets are in play I think a prudent mediated agreement would be that assets brought in to the marriage are kept by the party who had them prior to the marriage. Everything is in play though and there are no hard and fast rules for divorce in Ireland. The courts will be primarily concerned with the welfare of the child (i.e. that a primary carer is determined and that both parents have joint custody and adequate access rights and that the child has suitable accomodation and that the primary carer has sufficient day to day funds to take care of the child. Is your spouse working and does she have child care costs ? Then a child maintenance payment would be the norm. Spousal maintenance for a marriage of only 2 years would be very unusal.
 
Spouse is working but earns less then me, she will be the primary carer post divorce so I will pay the lions share of maintenance. As regards pension, we both have one, I have an irish fund and she has a fund administered in her home country as well as a UK state pension as she made national insurance contributions for many years. These issues will all be resolved, I'm largely accepting of whatever comes of that. My main concern is the issue around property as I'm concerned about a court ordered sale of the home here and division of proceeds especially as she has her housing needs essentially taken care of in her home country. Just wanted to check and see if property purchased before / after marriage had fixed rules attached. I can see now there are no hard and fast rules
 
You can ignore the questions about means and focus only on assets.

However the judge won’t, nor will whoever is advising your wife.
 
Of course maintenence will be factored in, I do not intend to ignore that aspect. I suppose my question is, in the event of appropriate maintenance being agreed upon, and my wife's housing needs taken care of, will the house here be let stay in my possession to live in. I have no issue with maintenance / pensions it's more so the thought of having to sell the house when my ex spouse will essentially have no need for it.
 
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