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What are we each entitled to in our divorce settlement?

What does the law say about how to split the house, how to share pensions and other assets, and how much maintenance is payable.

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How to divide the house

  • roryfowler
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25 Jan 08 #11935 by roryfowler
Topic started by roryfowler
Hello everybody, thank you in advance for any help you can give. I'm asking this on behalf of my mother who is seperating and unsure how to divide the house.

She paid the deposit in full (around 60k) and they have a mortgage of 90k for 5 years. Her partner paid all the mortgage payments as he was accepting the mortgage as 'his half' of the house. He is claiming that he is entiltled to more that 50% as the mortgage was more than the deposit. If the property would be sold does anyone know how this would be divided by a court?

Many thanks again.

  • DownButNotOut
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26 Jan 08 #11936 by DownButNotOut
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Rory,

I assume this is a separation...not a divorce (the rules/law/outcome would be very different were they married and getting divorced).

I assume that:
- the house is in joint names.
- the mortgage is in joint names.
- they have been together and had the house for 5 years.

The house cost 150k (60k cash from her....90k mortgage).

What is the house worth now? I guess at 200k.

OK so i base this on the house being 50/50 jointly owned (but with uneven initial investment).

IN my view....if the house sells for 200k (net)

- first your mother should get her 60k back
- then he should get his mortgage payments back
(say 500 quid x 12 months x 5 years = 30k)

So everyone has their investment back.

Then just split the 110k 'profit' 50:50....
so she gets 55k more and he gets 55k more.

End result:
- your mother gets 115k
- he gets 85k

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26 Jan 08 #11937 by roryfowler
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Hi. Yea that is how I would do it but he is saying as he has been responsible for the mortgage which was 60% of the purchase price, he wants 60% of the profit. Just wondered if he has any legal right to this as the property is jointly owned and joint mortgage and they were not married.

  • Monitor441
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26 Jan 08 #11952 by Monitor441
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Rory

I'm confused.

What is the value now of the house?

What is the outstanding mortgage?

If you can post these figures, it would help us to give you answers

Mon

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26 Jan 08 #11953 by roryfowler
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Its worth £265,000 and 80k of the original 90 is still outstanding on the mortgage.

  • Josh2008
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26 Jan 08 #11962 by Josh2008
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Was there an agreement as to who owned what percentage of the property from when purchased? Was that agreement as joint or in common?

If no agreement exists who on paper actually owns the property, if jointly owned and for a period of 5 years then:-

Courts could take the view that both parties purchased the property as their main home and as such, could easily award a 50/50 split on the net equity

I can understand P1 saying that he paid 60% of the original purchase price and by use of a mortgage and probably miffed that he may not get that % back, but:-

P2 will have contributed her resources in some other way towards the running of the home etc.

There is a lot of difference in what P1 is asking for if he means net equity, that is £265K less £80k = £185k leaving P1 @ 60% £111k and P2 @ 40% £74k

If 50/50 then P1 & P2 get £92.5k each - diff for P1 minus £18.5k and P2 plus £18.5k

Now look at it this way, P2 Invested £60k and returns profit of £32.5k

P1 only investment is the mortgage payments not a capital sum, if mortgage payments are circa £750 p.m. for the 5 years then P1 invested £45k but gets profit of £42.5k

More than one way of skinning a cat, see how the figures now against P1 claims of 60%

Would suggest they both go down the 50/50 route and agree that, otherwise court costs can eat into the difference quite easily

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26 Jan 08 #11965 by Monitor441
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Rory

Sorry, one more thing.

How much has her partner paid in mortgage payments in the 5 years?

Mon

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