Selling house after divorce
Discussion
A friend of mine is in the process of selling their home after splitting with her husband
She's confused as to the share of proceeds after the sale.
He put in a £25k deposit and obviously wants it back, she is thinking they split the equity 50/50 then gives him the £25k out of her share.
Am i right in thinking the £25k is paid back from the sale then whatever equity is left over is then split 50/50?!?
TIA
She's confused as to the share of proceeds after the sale.
He put in a £25k deposit and obviously wants it back, she is thinking they split the equity 50/50 then gives him the £25k out of her share.
Am i right in thinking the £25k is paid back from the sale then whatever equity is left over is then split 50/50?!?
TIA
Burwood said:
Unless it's agreed I wouldn't accept that. The deposit is a portion of equity. If purchase price 250k, he owns 10% plus half the balance 55/45.
Really?I figured the person who puts in the deposit would automatically take that out first then split the rest. It's not something i've had to deal with so unsure.
He's said he just wants his deposit and isn't bothered about the rest but i've told her to be careful. They're not divorcing just yet, as there is no mitigating factors i think they're giving it the 2 years required before doing the legal bit.
I suppose it depends how the property has changed in value.
If he put in £25k when the property was worth £250k, and it's now worth £500k then his £25k would technically be worth £50k,.
However, if it was me (and without knowing the full details), I would take the £25k out, then split the rest of the equity 50/50. They had been living together and paying bills as a couple, so should split any extra equity down the middle.
If he put in £25k when the property was worth £250k, and it's now worth £500k then his £25k would technically be worth £50k,.
However, if it was me (and without knowing the full details), I would take the £25k out, then split the rest of the equity 50/50. They had been living together and paying bills as a couple, so should split any extra equity down the middle.
Just adding that you clearly think my method of calculating is most likely otherwise you wouldn't be asking. No offence to your friend but it's not really a surprise is it, that two people split and they have different opinions on splitting the cash.
If the chap wants an easy life and is not bothered by 8 k then give her half after the 25 is taken. If he really values 8 k and no longer likes her too much then screw that and get what's owed.
Another way of looking at it is the house is 100% his as he bought it and she just paid rent. A friend of my wife's did this to her then boyfriend who didn't have the balls to stand up to her and her family. I realise they were married.
Like I said if there is no contract in writing, not verbal then he owns 55% and to take it to court is a huge costly loser for your new girlfriend
If the chap wants an easy life and is not bothered by 8 k then give her half after the 25 is taken. If he really values 8 k and no longer likes her too much then screw that and get what's owed.
Another way of looking at it is the house is 100% his as he bought it and she just paid rent. A friend of my wife's did this to her then boyfriend who didn't have the balls to stand up to her and her family. I realise they were married.
Like I said if there is no contract in writing, not verbal then he owns 55% and to take it to court is a huge costly loser for your new girlfriend
Dave350 said:
I suppose it depends how the property has changed in value.
If he put in £25k when the property was worth £250k, and it's now worth £500k then his £25k would technically be worth £50k,.
However, if it was me (and without knowing the full details), I would take the £25k out, then split the rest of the equity 50/50. They had been living together and paying bills as a couple, so should split any extra equity down the middle.
This.If he put in £25k when the property was worth £250k, and it's now worth £500k then his £25k would technically be worth £50k,.
However, if it was me (and without knowing the full details), I would take the £25k out, then split the rest of the equity 50/50. They had been living together and paying bills as a couple, so should split any extra equity down the middle.
Seems fair to me from both sides.
Burwood said:
Your not the new bloke are you Nicky 
Ha, i'm afraid not. Apparently i'm a good person to come to for advice
Maybe not so much in this case
He's off travelling for the next year or so, i just said to make sure he gets what he's asked for to save any hassle further down the line
If it's a joint mortgage then it will be 50:50 of the sale price
If they bought it and went down the route of remnants in common where it's stated legally what % split it is on the deeds then it would be that split --- but again if it's 50:50 on that same outcome. Generally doing it this way can capture the higher amount paid in by one over the other.
Frankly unless a pre nup then when he and she said yes all assets are shared. If she is nice she might give him back some £ over and above the legal share.
If they bought it and went down the route of remnants in common where it's stated legally what % split it is on the deeds then it would be that split --- but again if it's 50:50 on that same outcome. Generally doing it this way can capture the higher amount paid in by one over the other.
Frankly unless a pre nup then when he and she said yes all assets are shared. If she is nice she might give him back some £ over and above the legal share.
This happened to me a long time ago but may be still relevant to this case.
My girl friend and I bought a house,I put down 60% of the deposit,she 40%,we then shared the mortgage and bills.
We also took out a legal agreement,some like "declaration of trust" or what ever??
When we split I got 60% of the equity and she got 40%.
My girl friend and I bought a house,I put down 60% of the deposit,she 40%,we then shared the mortgage and bills.
We also took out a legal agreement,some like "declaration of trust" or what ever??
When we split I got 60% of the equity and she got 40%.
The sale proceeds of owned as joint temants will be split. He loses his deposit. Eg of sell for £250k they get £125k each.
Unless a declaration of trust was signed.
Why would he get the deposit back? It's a marital asset.
He can't just make up the rules now, it's up to the divorce court. He could, theoretically, lose the whole house.
Unless a declaration of trust was signed.
Why would he get the deposit back? It's a marital asset.
He can't just make up the rules now, it's up to the divorce court. He could, theoretically, lose the whole house.
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