Hi, I''d appreciate some advice from anyone who has their own experiences of what is fair in division of equity.
We''re separated and thinking of selling the FMH which Im still living in with our young child and my eldest, there should be enough equity in it for us both to move on, but I want to be sure finances are agreed before I put the house up for sale, and as advised by est agent.
We''re hoping to try and come to a sensible and fair agreement ourselves rather than losing what equity there is on solicitors and court fees (although would have a deed of separation drawn up with solicitor if we can reach agreement). We cant afford to divorce presently and are only 6 months off for grounds of 2 years separation, so wouldnt want things to get nasty anyhow through divorce proceedings (it''s been a rough road as it is).
I''ll try keep it brief now, married 3 years, I put down 75k and he 47k from our previous houses of which I had outstanding mortgage of 44k left. If house sells at realistic price and existing joint mtg paid off then there should be approx 115k in equity.
Im thinking in order to re-house myself and our child and my eldest (both girls and reside with me but significant age gap) in same area which is our home and near to schools work etc (I do not want to uproot children from their schools) then I would need to get new mtg of 70k approx which is just about do-able but would have to be over 20 years and that is to downsize.
He has greater earning capacity than me he earns double than I in his regular job and can do other jobs for cash that dont have to be around childcare.
Was thinking would need at least my 75k back that I put in which I think is about 65% - I have heard that the going amount through court proceedings etc is 60/40. I was going to not bother re pensions for what it would cost to fight it out in court etc as we were only married 3 and we both have pensions.
I dont think it is relevant for this query on equity division but presently he is still paying the mortgage though its joint, and renting a flat, however I am paying equivalent in childcare for our child earning less, maintaining/repairing the home and paying all costs for our child ie no maintanance and I havent and wont pursue this whilst hes paying mortgage.
So to recap on the above what do you think is a fair division of equity for us to agree between us re sale of property. Bearing in mind i''ve heard and he''s said going rate is 60/40, and max is 70/30, for me to get my 75k back I put in meet in middle 65%?? there are no other property assets etc to consider in this.
From my figures you will get back less in equality than was put in place to begin with is this correct?
What was the original purchase price and what was percentage of the purchase price was your deposit compared to his?
I can see why he is saying what you are suggesting is unfair, in so far as he is the one who is shouldering the lose, but as your earning capacity will be lower due to young child what your suggesting doesnt seem that unreasonable.
Its a short marriage, did you live together before you married, do you have a child from the marriage?.
If no to both then yes you should be thinking of taking what you invested, that would be the usual outcome.
Deed of separation, be careful we have another member who paid £1500 for one from a high street solicitor and she was furious to find wiki offer the same solicitor service for £139, apoplectic in fact.
To Mr solicitor who charged £1500 i hear Mexico is nice this time of year and they have no extradition treaty, book flight online and don`t turn up for work tomorrow.
Although your not looking at pensions, I would not throw them out the pot entirely, keping them in the pot as a leverage could help you secure what you want as a settlement. Some pensions are goldplated.
mediation will ask that you both cough off your pension valuations, they have to.
Hi dukey, thanks for your reply yes I''m sure Mr Solicitor is in Mexico right now.
I''ve had a quote from sols who are the first ones that weren''t pushy with me and scared me off said if straightforward and we can come to agreement then £200 max and they are who would do the conveyancing too, they did it last time, so I like the idea of keeping it all together.
Yes short marriage but lived together in my house prior (short because right after we got married the DV and abuse started and I could take no more). Two years on still trying to pick up the pieces but least I''m in one piece !
Yeah, re pensions I''d already thought about using that one as a bargaining tool, but as only short marriage and I have my own pension would cost more in court fees fighting it out.
Re earning capacity thats a big one cos he earns about double to me and can do jobs for cash ad hoc I cant, when and if I move Im going to have to prob move to next village and fit my hours around school times and cant do extra work myself because of childcare, his child contact also has to fit around his irregular shifts, so I couldnt even work extra then.
Im hoping we can come to some agreement as it''s in both our interests to be able to move on.
Dont throw the baby out with the bathwater re your pensions some pension are much better than others....and your ages are relevant too
at mediation you will both have to supply a valuation of your pensions and the fact you have limitations about you earning capicity due to child care
Leverage is better than nothing wait until you have it in black and white from his pension company to see what his pension is worth...dont forget that that they minimise your contibution and maximise ther own while hiding assets