Fergus Wilson Panorama documentary – now available on iPlayer22:10 PM, 18th March 2019
About 3 days ago 93
I have read some of the articles that sound similar to mine but not sure they answer my specific question!
In 2010 I sold a business and raised a nice amount of cash. With this I paid off my wife’s mortgage on her house we rented out and over time we purchased some more BTL homes. This was my wife’s business as I remained in the company I had sold under an earn out. I am not going to go down the route of “all the money invested was mine….” as I think a 50:50 split is fair (there are 2 great kids involved) but you need to know some facts before you can even begin to offer advice!!!
My wife says she wants to split but it seems mostly amicable (apart from I don’t want to split!) but you need to know that she is a (no longer practising) solicitor so she knows her way around the law.
So, point 1:- we own 7 BLTs
5 have declaration of trusts (99%-1%) for tax reasons (its was her business)
2 are solely in her name
All deposits were funded by my business sale and mortgages arranged whilst I was in employment.
So- first question before point 2- Does she really own these properties as described above? And I am entitled to nothing from this (apart from the 1% of 5 of them?)??? If so, was I mad in using this technique to buy the BLTs?
Point 2- I had 6 months off on garden leave, and then 6 months off renovating one of the properties. In other words, I no longer earn a salary (just yesterday I invested in another business but no earnings for at ;east 6 months)- so if my wife does own these properties how will she get mortgages going forward? Likewise- if we split them how would I take over the mortgages?
My personal preference (advice on how we do this so I own 50% legally and not just morally) would be to keep the property business (its not a LTD) moving forward at 50% each but take a salary (I would be happy to pay my wife (might be ex!) more as she will run this. The whole idea was as an investment for our kids future so I can work with that.
Not sure if it is of relevance but we own our family home with around £375k of equity in it.
Any advice on where I currently stand and maybe where I could stand going forward?
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