Seperating Equity

screid

Hi All,

Me and my partner bought a house together outright and used 50K from my grandparents (they don't want it back) and we each put in 14K totalling 78K. We have decided to part and we obviously need to release these funds to enable us to buy seperate properties. Now comes the question, how do we split it, what is the norm? I have said that I will ringfence the 50K so whatever money raised from the sale after this we will split 50/50, some people have said that because my grandparents put in around 70% of the cost then I should get 70% + 15% (85%) and my partner should only get 15% of the current market value, which seems a bit (morally?) wrong as the cash was intended in a round about way for the both of us.

What is the norm? What do people normally do in these circumstances, to keep the seperation on friendly terms.

Any advice/suggestions gratefully received. Thanks, Shaun

suki1964

What has the "norm" got to do with it if you are both happy with the split that you decided on?

If thats what you are both happy with then go for it. Life isnt all about exact percentages.

screid

Hi Suki1964,

Well that's what I thought as well, it's just that people keep telling me that's not how it works so I thought I'd ask and not to be too soft as I will suffer in the long run. We are both happy with this solution and it keeps us both amicable with each other. Thanks for your prompt reply.

Shaun

Jay1b

I suppose it depends how long you were together for. If you was together for 20 years then 50/50 is fair. If it was 6 months ago, then it most certainly is not.

rchddap1

The money was intended for your lives together...to help you....however that is not the case any longer. I agree with Jay that my tendencies would be to go with 50/50 if you have been together for some time....but to split things differently if not.

However, it does all depend on what you want. What seems to be easiest may not be right. At the moment your ex partner is not going to complain as they are getting 14k + 50% of the profit from the 50k from your family.

suki1964

Jay1b wrote:

I suppose it depends how long you were together for. If you was together for 20 years then 50/50 is fair. If it was 6 months ago, then it most certainly is not.

But as the Op has said, the cash was a gift to them both to get them started, if we want to go looking at it that way then the GF could turn round and ask for a percentage of that as well and thats when things will get messy and nasty. Isnt life too short, esp as both parties have agreed (and Gparents) that this split suits everyone?

JennyW_2

I think you can only go with what you feel is right and the circumstances.

When I was 27 I got divorced - we had only been married for 15 months so therefore decided that instead of selling up, I would take back my deposit to the house which was £10K. I was happy with this as it enabled me to start again on my own. Some said I should've stood my ground and should've madehim sell the property and go for 50% but to be honest, taking my deposit was the less painful way to go.

[Deleted User]

Bear in mind that your partner has benefited from the reduced mortgage payments as a result of your 50K. You on the other hand, has lost the benefit of the interest on the 50K. Those are the cold hard facts!!

But when it comes to the question of ethis and what is morally correct, I'm afraid only you can answer this question. You will need to consider the emotional side of the relationship, what it meant to you, and what you got out of it.

Good luck with your separation - hope it will all work out amicably.

screid

Hi All,

Thanks for all the information/suggestions and most of all support.

Kind regards, Shaun