'The fairest way to split a house on separation' blog discussion

john_s_2 · 22 January 2011 at 12:27AM

I've always considered our flat as 50:50 (between my wife and me). Even though I paid a larger deposit, and have since contributed more due to higher earnings.

But the higher earnings were due to her being on either no or reduced hours due to childcare. Then about six years ago (just when she was considering upping her hours) she got diagnosed with a lifelong illness that would have made working longer hours very uncomfortable, if not impossible. So that would be awkward to factor in were we to try dividing it up any other way.

I think I've always looked at marriage (or civil partnerships) as being a 50:50 split. Although in our case we were never that different in terms of what we have been bringing to the table. Maybe I'd feel differently if one of us had earned much much more than the other, and especially if there hadn't been children or illness/disability.

mnqslbs2 · 21 February 2013 at 12:47PM

Hi, My ex-partner and I are selling our house.

The house was bought for £119,500 just before the crash in 2007. I put down the entire deposit of £12,500 and we have contributed equally to all mortgage payments and house upkeep throughout.

We have accepted an offer on the house of £115,000 and have £99,500 remaining on the mortgage, so equity of £15,500.

My question is how do we split this. Is it fair that I get my £12,500 initial deposit back and then split the remainder 50/50?

Thanks, any input would be great. The internet seems flooded with example but none seem to quite fit.

StuC75 · 21 February 2013 at 1:14PM

Whats 'fair' can be quite subjective based upon persons perspective (my personal experience being taking over the mortgage in my name).. was the deposit more important than what its cost in the meantime? How did you sign for the house? tenants in common etc or straight 50/50?? Would be more inclined to include the deposit in the total amount paid to date for the mortgage and working out 'share' of those amounts ..

for example your share could be taken as:
(50% of mortgage payments + 12.5k depositing) / (100% of Mortgage Payment + 12.5k)..

Unless there was anything specifically agreed through the solicitors regarding such deposit money..

mnqslbs2 wrote: »

Hi, My ex-partner and I are selling our house.

The house was bought for £119,500 just before the crash in 2007. I put down the entire deposit of £12,500 and we have contributed equally to all mortgage payments and house upkeep throughout.

We have accepted an offer on the house of £115,000 and have £99,500 remaining on the mortgage, so equity of £15,500.

My question is how do we split this. Is it fair that I get my £12,500 initial deposit back and then split the remainder 50/50?

Thanks, any input would be great. The internet seems flooded with example but none seem to quite fit.

delroy2068 · 25 July 2016 at 7:42PM

Hi there, could someone please explain how the proportional split calculation works please in the example? Why does Phil get 8,200 if his contribution is 22% of the 45000 Jen put in. 22% of 50,000 does not equal 8,200. I know I've missed something obvious. Could someone please explain. Thank you.

RE:
Proportionate split
Jen gets her £45,000 back plus £36,800 from the split = £81,800 that’s a 82% return on her cash
Phil gets his £10,000 back plus £8,200 from the split = £18,200 that’s a 82% return on his cash

Bertie_Wooster75 · 4 February 2019 at 10:05PM

This blog has really resonated with my current situation. I'm about to purchase a home with my partner as tenants in common with a co-habitation agreement an declaration of trust. We are at the stage of discussing how to split the equity. I'm putting up the deposit etc., so we can purchase. Unfortunately my partner isn't in a position to do this, however we will have a joint mortgage and we will pay this 50/50 even though I earn less.

As the main stakeholder in the purchase, I have a preference for the proportionate split of equity and my calculations for what my investment is in the property I'm buying is confirmed by Martin's example. However, what I'm struggling to understand with Martin's example is how it was decided that Jen would have £36,800 on top of her original investment and mortgage contributions and Phil would receive £8,200. I know maths has never been my strong point, but I think I've missed something in the calculation made?

'The fairest way to split a house on separation' blog discussion

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