FiT options after a divorce

[jerriais]

Had a very depressing call today. Chap has 4kw system on dream home he built then got served divorce papers. Has been ordered by lawyers to hand over panels to wife within 28 days even though he still owns the house until she buys it which she must do within 2 years. He asked how to transfer FiT payments to his wife but he was insistent that she should only get the new lower tariff so he wants to decommission the panels rather than simply transfer the Fit registration. When I told him that this would mean she couldn't register for any FiT he was even happier, very sadi state of affairs. Eventually advised him to find out what they mean by decommissioning and to check with his solicitor about whether he could transfer ownership of the panels but keep being the nominated recipient but warned him that if he wanted to do that he would obviously need cooperation from his wife as she could just turn off the system. Basically trying to avoid getting involved as don't fancy sending my team into decommission it against the will of the occupant of the property and just find it sad when two people are trying really hard to shoot each other in the foot.

 

[whinmoor]

Wow - that's a new one. It sounds like the route they are planning to take is going to send thousands down the drain.

But, it's not really your business getting involved. The system is working fine and you kept to your contract. If they want you to carry out work, then you'll have to charge them your regular hourly rate.

Maybe they can come to some compromise - he gets the FiT one year and she the next? The kit won't fetch much at auction so flogging it off would be pretty pointless and may not even cover the removal and decommissioning costs.

 

[jerriais]

No, we didn't even install it! He can't get the name of the installer because the papers are in the house and he isn't allowed in!

I did come up with a nice solution though (my wife's idea actually!), I suggested he nominate his kids as recipients so a nice college fund or house deposit fund is established so neither he nor his wife benefit directly so she will have no reason to sabotage the installation by turning it off and hopefully they can both agree that it would be good to let the kids have it directly rather than throwing it away. I tried to explain that he's got a goldmine on that roof with a 43p tariff and he's best off not pouring a load of concrete down it, maybe a slightly stretched analogy but I hope he gets my drift!

 

[Worcester]

before reading the above post, it's pretty much what I was going to suggest.
Best thing to do, create a trust, tansfer the fit to the trust, nominate the kids as beneficiaries of the trust not to be touched till they are 25 (Good reasons for 25 - by that time they are responsible with the money), and if they want a college loan they can secure one against it anyway.

Also as trustee he could put the money in an ISA (owned by the trust) and then it would earn compound interest as well.

- He should speak to a IFA quickly

She then wouldn't dare mess with the kids future