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indy2005
Junior Member
458 Posts |
 Posted - 08 July 2008 : 22:49:02
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Hi,
Just looking through my income and expenditure and trying to work out where this 70% of spare income comes from...is it 70% of total household income...which implies my wife is in the bankruptcy, or 70% of my income.
For example:
My income £3000
Wifes contribution £500
Total income 3500
Total Outgoings £2800
Do they take 70% of the 700 left or 70% of the £200 left in my salary. Just trying to work out how my wifes contribution comes into it and if she gets penalised.
I dare say they will argue me down on expenditure, but to know how the formula works would be useful.
Finally, the £500 contribution my wife makes is probably too high, but we are concerned if we drop it any further - it will undermine my zero claim to the house as I will be paying most of the mortgage. We transferred the house to my wife this year because I withdrew my 50% share two years ago to pay off my unsecured debts. When we put the figure of £500 down my wife was working 4 days a week but has since dropped Mondays...we are reluctant to change it because of my wifes concerns over the house.
Regards
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John
New Member
United Kingdom
73 Posts |
Posted - 08 July 2008 : 23:37:25
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Hi indy
to answer your first question, The OR would look at 70% of the £700 DI in the household (£490) leaving you £210 for personal use.
I don't feel it's correct to say your wife is being penalised regarding her contributions. Think of it this way, you are a couple and contribute to the household equally. £500 from your wife and £500 from you. Your expenditure exceeds that amount by £1800 which only your personal salary will support. Further, your personal salary brings in another £700 to the household over and above your combined needs. Thus, as its your salary doing most of the work, your salary which provides all of the DI and it's your BR,then it would seem fair to the OR to propose an IPA.
In response to the 2nd part of your question, the truth is there is no definitive answer. You may well be able to substantiate the removal 2 years ago of your share of the equity. In which case if the market value has risen within the last 2 years then 50% of that increase is now yours. Likewise you have clearly made the majority contribution over the same period which could, in the OR's opinion, swing any increase in value from a 50/50 split to say, 80/20 in your favour. If there has been no increase in value, and your previous withdrawal of the 50% equity that was yours can be substantiated then you may be ok. Truth is we cannot foresee what any given examiner will decide to do in any given scenario. We can only make ourselves aware of the possibilities. |
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