what happens to mort life plan after separation?

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aoc

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trying to sort mortgage etc after separation - just wondering what happens to the joint life policy we have? i don't want to lose out on what we have paid into it - can it be split and then each party become liable for their own part of it if they want to keep paying it?
i will be in family home, so will it be as simple as getting his name off it and keeping my amounts as they are and paying my share?
 
Is your policy just insurance, i.e. only pays out in the event of a claim? Or is it a policy that acquires some form of cash value after you pay into it for a few years?

Is the mortgage still in joint names? Who will be paying the mortgage from now on?
 
i have no idea about first questions... from memory it only pays out on a claim, its not a reducing policy though i do remember that much. i have a serious illness plan attached to it aswell, ex. does not.

Yes, the mortgage is still in joint names, i want to get ball rolling while all still amicable. I will be paying the mortgage as i have been for past 2 years (yes i realise i should have done something before now).
 
As long as the mortgage remains in joint names, the lender will insist on both names being covered on the policy. If you have sufficient income that you would qualify for the mortgage on your own, you can ask your lender if your ex can be removed from the mortgage. But that's at the lender's discretion.

If the lender does agree to remove your ex's name from the mortgage, then you have two choices: - (1) Cancel the existing policy and replace it with a new one covering just you. (2) Keep paying the existing policy. You'd have to see which one is cheaper, as you're older now than you were when you took out the original policy.

You can't split payments on a life insurance policy - one or other of you has to pay the premiums each month.

i don't want to lose out on what we have paid into it
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If the policy pays out in a claim, then you're not losing out anything if you cancel it. You've both been paying for the insurance which you had the benefit of.

Hope this helps.
 
Thanks again.... trying to keep it as non-complicated as possible. Yes, i understand that the policy must remain while we are both on mortgage, that's not an issue at all.

I know that i have sufficient income, but i work for an architect (for 12 yrs.. have good job), but worried that they will consider it too close to construction industry to give me the mortgage on my own - assume it would be considered a new mortgage?
what are chances of bank giving me mortgage on my own - owe about 165k.... my salary is around 44k but have car loan of about 10k...

by keep paying the existing policy - how does that work if ex comes off mortgage? i would prefer to keep this policy if at all possible?
 
As you've been paying the mortgage on your own for the past few years, this should stand in your favour. Point it out to your lender. Ultimately it's at their discretion, so my opinion isn't worth much.

I've dealt with AIB before in relation to a separation and, while they did re-assess the customer, they took into account the circumstances and weren't using the exact same criteria that they would for a brand new loan.

If your ex comes off the mortgage, you can still continue the joint life policy. Your lender is only interested that you are covered. If there are extra people covered also, that's no concern of theirs any more. You'd need to talk with your solicitor about the implications if he died and the policy paid out.
 
yes... i plan to have all the facts and figures together.... monthly budget done etc (will be easier if they ask ny questions). i'm just concerned what happens if i do tell them and they decline me - will my ex be on the deeds forever (unless i win the lotto lol)

ok, i would nearly prefer that with the policy.... we have both agreed that ultimately the house and any monies will go to out daughter, regardless of what age etc we die.

but at the moment as it stands i am paying all mortgage and life cover and if something were to happen me... he gets it all.... def time to get it all sorted!!
 
Even if the bank decline to take him off the mortgage now, that's not it forever. After a couple of years you will have paid down some of the mortgage and might have a got a few raises :D so you can try again.

You really need to nail down all the issues you've mentioned (what happens on either death) etc., with a solicitor sooner rather than later.
 
yes... that's true.......... eh doubt it about the raises, we are all lucky to have good jobs at the moment!!
sure i can only try........

yes... i am currently preparing the list... to be sorted. Ex has no inclination to sort nything, happy to let it all saunter on as it is. obv as it suits him, he's in the better position as i can see it........ thanks for taking the time to reply all the times :)
 
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