Financial ties after seperation
Discussion
Hi, I was hoping to never need to ask this question. I've been engaged to my fiancée for 8 weeks and she's now told me she's is considering seperation. I think she's having a tough time, I've added to it and hoping to make it work however I'm trying to remain logical and define my next moves should the worst happen.
I currently own a flat with a mortgage. I rent this out and moved in with my fiancée where we planned to purchase and develop a chapel together into a residential property. My partner used her equity in the property to buy the chapel and she has the mortgage in her name as I kept my mortgage on my flat. We agreed to sign a declaration of trust as she'd put in around £50k deposit and another £25k in development costs. We agreed that any increase in value would be split and her interests remain solely hers.
We pay the mortgage from a joint account we both pay equally into. I took on the majority of the labour and low skilled building jobs, demolition, stud walls, plasterboarding, decorating etc. How do I stand now in relation to a claim on the increase? In a fit of rage my fiancée has told me I'll get nothing but although I see her money as hers, I can't go away empty handed after 9 months work and an agreement that we'd split profits.
I currently own a flat with a mortgage. I rent this out and moved in with my fiancée where we planned to purchase and develop a chapel together into a residential property. My partner used her equity in the property to buy the chapel and she has the mortgage in her name as I kept my mortgage on my flat. We agreed to sign a declaration of trust as she'd put in around £50k deposit and another £25k in development costs. We agreed that any increase in value would be split and her interests remain solely hers.
We pay the mortgage from a joint account we both pay equally into. I took on the majority of the labour and low skilled building jobs, demolition, stud walls, plasterboarding, decorating etc. How do I stand now in relation to a claim on the increase? In a fit of rage my fiancée has told me I'll get nothing but although I see her money as hers, I can't go away empty handed after 9 months work and an agreement that we'd split profits.
sebdangerfield said:
Similar to that case but I've also jointly paid the mortgage too.
It's difficult to guess the price increase, purchase was £170k, spend around £30k. I'd expect it to be worth £250k.
So you're in for about £5k? Give it up as a bad job and walk away, counting yourself lucky that you didn't sell your own property to get some equity. It's difficult to guess the price increase, purchase was £170k, spend around £30k. I'd expect it to be worth £250k.
If you get solicitors involved that £5k will evaporate faster than you can blink.
davepoth said:
Give it up as a bad job and walk away, counting yourself lucky that you didn't sell your own property to get some equity.
It's a horrible situation, and I feel for you. However, I'd agree that you should probably put that one down to experience (and good fortune - it could have been much worse). At least you know early in the engagement that it would never have worked. So, very quick maths:
She invested £50k + £25k to profit from the investment = £75k (86% of investment)
You've invested £5k for materials and let's say 50 days labour at £150 per day (£7.5k) = £12.5k (14% of investment)
Overall profit on investment = 250 - (170 + 25 + 12.5) = £42.5k
Her profit from investment = £36.5k
Your profit from investment = £6k
You might want to take off any rent you should have paid her by living at hers..
She might want to argue loss of interest on £75k..
She invested £50k + £25k to profit from the investment = £75k (86% of investment)
You've invested £5k for materials and let's say 50 days labour at £150 per day (£7.5k) = £12.5k (14% of investment)
Overall profit on investment = 250 - (170 + 25 + 12.5) = £42.5k
Her profit from investment = £36.5k
Your profit from investment = £6k
You might want to take off any rent you should have paid her by living at hers..
She might want to argue loss of interest on £75k..
Lotus Notes said:
So, very quick maths:
She invested £50k + £25k to profit from the investment = £75k (86% of investment)
You've invested £5k for materials and let's say 50 days labour at £150 per day (£7.5k) = £12.5k (14% of investment)
Overall profit on investment = 250 - (170 + 25 + 12.5) = £42.5k
Her profit from investment = £36.5k
Your profit from investment = £6k
You might want to take off any rent you should have paid her by living at hers..
She might want to argue loss of interest on £75k..
£6k profit plus his £12.5k (as you guestimate it) notional investment. And 9 months of full time labour is quite a bit more than your 50 days estimate. At the moment it sounds like she thinks he's entitled to no return at all, nevermind any profit. Hopefully, she just said that in the heat of the argument and will back off a little when things cool down.She invested £50k + £25k to profit from the investment = £75k (86% of investment)
You've invested £5k for materials and let's say 50 days labour at £150 per day (£7.5k) = £12.5k (14% of investment)
Overall profit on investment = 250 - (170 + 25 + 12.5) = £42.5k
Her profit from investment = £36.5k
Your profit from investment = £6k
You might want to take off any rent you should have paid her by living at hers..
She might want to argue loss of interest on £75k..
Strength of OPs case is going to revolve around the exact content of the deed of trust. It's probably going to be better to come to some amicable agreement than try and fight it out through the legal system, assuming she softens a bit.
mjb1 said:
Lotus Notes said:
So, very quick maths:
She invested £50k + £25k to profit from the investment = £75k (86% of investment)
You've invested £5k for materials and let's say 50 days labour at £150 per day (£7.5k) = £12.5k (14% of investment)
Overall profit on investment = 250 - (170 + 25 + 12.5) = £42.5k
Her profit from investment = £36.5k
Your profit from investment = £6k
You might want to take off any rent you should have paid her by living at hers..
She might want to argue loss of interest on £75k..
£6k profit plus his £12.5k (as you guestimate it) notional investment. And 9 months of full time labour is quite a bit more than your 50 days estimate. At the moment it sounds like she thinks he's entitled to no return at all, nevermind any profit. Hopefully, she just said that in the heat of the argument and will back off a little when things cool down.She invested £50k + £25k to profit from the investment = £75k (86% of investment)
You've invested £5k for materials and let's say 50 days labour at £150 per day (£7.5k) = £12.5k (14% of investment)
Overall profit on investment = 250 - (170 + 25 + 12.5) = £42.5k
Her profit from investment = £36.5k
Your profit from investment = £6k
You might want to take off any rent you should have paid her by living at hers..
She might want to argue loss of interest on £75k..
Strength of OPs case is going to revolve around the exact content of the deed of trust. It's probably going to be better to come to some amicable agreement than try and fight it out through the legal system, assuming she softens a bit.
It's looking more likely as although I have tried to make it work, as the dust settles I'm more convinced I want to move on. I think it was fear of the unknown.
sebdangerfield said:
Sarnie said:
soprano said:
What does the TR1 say from the time you purchased the property?
It will state her as the sole owner..............I assume.........Flat with mortgage - solely in your name and rented out,
House with mortgage - solely in her name, you live there together,
Development property - cash buyers, owned jointly with a non equal split as per a deed of trust?
The TR1 form for the development should name you both as tenants in common with an unequal share.
So when you say you've been paying equal amounts towards the mortgage, that's you contributing to her mortgage on her house (where you are living together), a separate thing to the development property?
How did you buy it on the deeds?
Tenants in common or joint?
If it's tenants in common then legally selling price less mortgage outstanding less selling fees is split by that ratio. If you want to give here something for her extra investment then that's up to you otherwise just the basics.
It's not like you are married so who cares
Tenants in common or joint?
If it's tenants in common then legally selling price less mortgage outstanding less selling fees is split by that ratio. If you want to give here something for her extra investment then that's up to you otherwise just the basics.
It's not like you are married so who cares
Welshbeef said:
How did you buy it on the deeds?
Tenants in common or joint?
If it's tenants in common then legally selling price less mortgage outstanding less selling fees is split by that ratio. If you want to give here something for her extra investment then that's up to you otherwise just the basics.
It's not like you are married so who cares
He's not on the deeds at all..........thats the point.Tenants in common or joint?
If it's tenants in common then legally selling price less mortgage outstanding less selling fees is split by that ratio. If you want to give here something for her extra investment then that's up to you otherwise just the basics.
It's not like you are married so who cares
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