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Split of house equity after seperation.

Discussion in 'CycleChat Cafe' started by red_tom, 27 May 2008.

  1. red_tom

    red_tom New Member

    Location:
    East London
    Possibly one for Patrick if he is around.

    My wife and I are splitting up (we've just grown apart - it's all very amicable). The only thing we need to do is to sort out the split of the equity in the house. We're not going to actually sell, her parents are going to give her the money to buy me out. We've had some valuations done and have agreed on a value for the house. Things are slightly complex in that she put in a deposit for the first place that we bought which we then sold to buy our current place. We are still married (and were at the time of the original purchase) but looking to get a divorce in the near future.

    Is there a standard calculation that is used for working out who gets what? I don't want to be an a4se about it but a the same time I don't want to get fleeced. Her ma (partner in a law firm) is suggesting that the value of the deposit should increase at the same rate as the value of the properties (so the percentage of property value remains constant).
     
  2. col

    col Veteran

    Sounds like the ma in law is just trying to get the best for her daughter,as you would expect,but iv known a couple of people over the years in this position,and it was just split down the middle,or you could argue if you were the main wage earner that that percentage should be taken into account over the years too.So obviously as it was all done in wedlock,its all just halved,as it would get very complex and picky if all these things were took into account.Just an observation on friends in the past.
     
  3. abchandler

    abchandler Senior Member

    Location:
    Worcs, UK
    I bought a house with an old girlfriend and we subsequently split up. As part of the documentation for the purchase we were advised to identify the initial contribution made by each with the balance then divided equally to cover exactly such a split. Five years later we ended up splitting up, so I was glad of it in the end. If it's not an agreed process, my guess would be that the full value of the house could be treated like any other asset of the marriage and should be halved (assuming there are no children involved). Regardless of initial contributions.
     
  4. Baggy

    Baggy Cake connoisseur

    I don't think there's a standard calculation other than 50/50...

    The value of the deposit should increase at the same rate - but assuming you were paying 50/50 mortgage on your first place and that any capital was re-invested I think you need to work out what proportion of the capital you both owned after the first place was sold, and apply this to the split of the second.

    A good property solicitor should be able to work it out...
     
  5. Night Train

    Night Train Guest

    Is the value of the deposit a large percentage of the value of the first house? I would be tempted to use this as a guide. If, for example it was 5% then maybe the split could be negotiated on a 52.5/47.5 basis giving her 5% more then you to reflect the deposit.
    From experience, if it is a relatively small amount then it may be easier to not quible too much on it to retain a good post split relationship.

    My divorce was 5 years of wranglings for 3 years of marriage.
    After cheating on me she wanted:
    100% of the equity of the house by selling it and making me homeless
    A deposit on her next house from me
    All the legal fees to be paid by me

    She paid the joint mortgage from her account but I paid the 15% deposit for the house, paid all the bills (fiancially equivilent to the mortgage each month), paid all the housekeeping and paid for, and did, all the repairs to the house (it was a semi deralict building).
    She was on 3 times my salary in a job I supported her to get and suceed in by putting my own career on hold.

    I wanted a fair and proportionate split on the house so I could buy her out.

    I got the whole house, an agreement that she must pay me a subsistance living if I am ever out of work (I would never use that clause) and pay for the vets fees for our pets. I paid my own legal fees as she didn't want a solicitor and she walked away with her huge income, my dog and no knowledge of what she agreed to. I was after a fair outcome but my solicitor put forward the most she thought she could get away with and my ex didn't check before signing.

    It took a few years but we are now friends again. She is now on about 5 or 6 times my salary and has a personal cash savings float of around twice my annual salary so I am not ashamed of getting the house.
     
  6. postman

    postman Legendary Member

    Location:
    Meanwood ,Leeds
    Sorry to hear about your splitting up.Try at all costs to keep away from legal eagles.You will finish up paying them a fee and may harm your feelings towards each other.Try at all costs to be sensible.You may finish up paying out thousands ,which could be used to split the difference in who supplied what in the beginning.If that makes sense.I went through this many years ago.It cost me three grand to get ten grand.So i only got seven after paying out.And in a life time what is a couple of grand either way.There are more important things in life.Keeping friends with your other half is important.
     
  7. Cycling Naturalist

    Cycling Naturalist Legendary Member

    Location:
    Llangollen
    Not really, because I'm a property lawyer not a divorce lawyer! If you weren't married, with very few exceptions, the division would be as per the deeds ie. equal shares unless you had decided otherwise in writing. In divorce cases, the court can take into account other factors and rejig the shares. I suggest that you get some professional advice.
     
  8. col

    col Veteran

    This sounds like a better turn out than some night train.My brother who was on active duty with the paras abroad some years ago,split with his wife,who had cheated on him claiming she was lonely while he was away,she took him to the cleaners as there were kids involved,very unfair,which seems to be the norm.
    Just as a friend who had the same thing happen,had to pay 80 pounds of a 190 weekly wage to his cheating ex,even though it crippled him,and she was living with another and married him ,and was earning three times his wage,but she was due to this by law as a kid was involved,even though,again,they were cheating and the cause of the split,seems a little strange doesnt it?
     
  9. Night Train

    Night Train Guest

    Red Tom, without being taken for a ride, small amounts really aren't worth the worry, As postman says, the 'fight' can cost most if not all the difference. I used to say that the measure of a man (or woman) is how he relates to his ex and you seem to be doing ok with yours if you keep talking. The worry would be if her mother tries to over cook things beyond either of your needs.


    Col, my ex has mellowed over the years and does agree that she was being unreasonable at the time though she still denies the affair (she claimed it wasn't an affair as she was still happily married to me!). Fortunately we have no children and I am quite happy with her looking after my dog.
    (sorry for the highjack)
     
  10. numbnuts

    numbnuts Guru

    Location:
    North Baddesley
    I was taken to the cleaners I got sod all
    hope you do better
     
  11. red_tom

    red_tom New Member

    Location:
    East London
    Thanks for the input guys. Will let you know how things pan out.

    Will definitely be getting some advice (Sorry Patrick for doing the the 'all solitcitolawyery types are the same' classic mistake :smile:).
     
  12. Bigtallfatbloke

    Bigtallfatbloke New Member

    I know nothing of this, but my guts tell me that if there are any kids involved(?) the mother will likely get everything, the house, the kids, the lot, unless she is deemed irresponsible or not of sound mind or something. I think the courts put the well being of kids above everything else.

    Another though I had was how the house is actually owned...either as joint tenants or tenants in common?
     
  13. red_tom

    red_tom New Member

    Location:
    East London
    Thankfully there are no kids. Her not wanting kids was part of the problem.
     
  14. col

    col Veteran


    I think you were lucky red tom,my brothers wife got everything,aswell as the kids,but palmed them off to anyone who would have them so she could go nightclubbing and pubbing most nights,in the end the inlaws took custody of them,and they have had problems socially for years now.
    I know it doesnt stop the hurt,but you will find someone eventually,who wants the same as you.
     
  15. Mortiroloboy

    Mortiroloboy New Member

    I'm no expert, but 50/50 would seem to be correct.