Spoke to stbx after recieving a letter from solicitor about dividing assets.
What she wants is her £48k that was used as the deposit, I get £13 which was used to pay legal bills moving costs and part of the deposit. The remaining equity then split 50/50.
The way the law in Scotland deals with it seems to be that all assets and debts are split 50/50, with my pension and endowment included in the calculation. I would then have to give her an offset equivilent from my share of the house equity. All of which sound bad for me but in fact would net me an extra £5000, if I have my sums about right.
The question is which should I go for? Or should i try to meet in the middle somewhere?
With her suggestion I am going to struggle a bit financially. With either way she will struggle financially.
Accepting her offer means she leaves my pension and endowment untouched, though in truth I will need to cash in the endowment to raise money in either case. After all I need to buy a new home and pay for the divorce too.
Speaking to solicitor on Thursday so advice as to which way to go would be helpful. I dont want to rip her off in any way but any extra money is going to help insure my future and my sons. And that goes for her as well...
If the difference is only £5k it isn''t really worth arguing the toss because of the legal costs you can incur. In Scotland it isn''t uncommon for the wife to have the lions'' share of the equity and the husband to keep their pension fund in tact.
The simple fact is that my pension is worth a lot more than my stbx''s pension. Though we are still waiting for a figure for both. The endowment could be seen as a joint marital asset. So I would give her half of the surrender on it.
I think that a 50/50 split of equitu would net both of us £50K before starting to offset pensions. About 8 grand from my pension and half the endowment would give her say 63k. Me about 42k. which on the face of it is fair.
Going with her offers she gets £68k and I get £37k. But ideally I would need a bit more for a good deposit on a new home.
In either case she gets the 48k she used as the deposit on this house. Plus some more. I hope that a comprimise can be met. Though first we need to agree on a sale price. Valuation said £195-205K and I thought put it on sale for £200K fixed price. She says 192k which would cut my money down another 4 grand.
I am trying to be fair and get the best for both of us.
The other thing for me is that IF I accept her offer, my next mortgage will have a loan to value ratio of about 72%, which isnt bad, but if its done the way I want it done I can have a loan to value of 69%. Not a huge difference perhaps but for the interest rates it will knock .5% off.
Again not a huge amount unless interest rates start to rise, which they will eventually.
Thanks Fiona, I do hope this in one hurdle cleared. It would be a huge weight off my mind. Though there is still some issues that she is being awkward about, mostly repairs that need done. She is pending all her money on fixing up the place she is renting....
Its fairly minor. But it does need done.
Once that is done, I can get the place onto the market. Get someplace smaller and wait for the dust to settle.