Help me understand this please.

liz_uk

To start at gthe beginning, My partner and I have been together for nearly 10 years now and have a child together.

When our child was born, we bought a house together, but due to me having PND, I went to stay with my mum as he works very long hours and I needed the support,

3 years on, we have now sold that house and are ready for a fresh start, with us all moving in together in a new house., the old house has been sold and the new one is near exchange.

We went to sign the contracts today and we are drafting a declaration of trust agreement.

This is what I need help in understanding.

He is putting about £116k into the new house (£195k) and the rest will be on mortage which we will be paying together, Should we seperate, we would sell the house and he would be given back the £116k that he put in, plus 50% of the profit. I would only get 50% of the profit.

So.. my question is.. i`m confused about the mortgage part of it. as we are paying the remainaing £79k mortgage together, what happens to that if we seperate?

Can`t get my head around it !

Also do you think that just the 50% profit share is reasonable, seen as if the house doesn`t make a profit in the future, i`d end up with nothing ?

klaatu

You would pay off the mortgage with the proceeds, your partner gets his £116k back, then you split whatever's left after costs.

Seems to me you've got quite a good deal, as your partner effectively gets no return on his £116k.

lowis

yes it is reasonable - some people might even suggest he was entitled to more due to the 116k he is putting in. persoanlly i think you have it right.

mrcow

Hang on, where did he get the £116k from? If it was from your old house, surely it's your money too?

liz_uk

mrcow wrote:

Hang on, where did he get the £116k from? If it was from your old house, surely it's your money too?

Even though we bought it together as a joint mortagage, I didn`t live there or contribute as I was a full time mother at the time.

Rimo2021

liz_uk wrote:

Even though we bought it together as a joint mortagage, I didn`t live there or contribute as I was a full time mother at the time.

Full time mother to HIS child!!!!

In a marriage it often makes practical and financial sense that one partner works and the other is the main child carer but if the marriage breaks up they are both considered to have contributed equally (in different ways) to the partnership and share any assets (eg the house and pensions) aquired during the partnership.

In other words in a marriage, no matter whose name is on the pay cheque it should be considered as earned by both, and any assets it bought belong to both.

I'm not sure where you stand legally since I assume you are not actually married but you should check out the situation because if you had a joint mortgage and your name was on the deeds you are probably antitled to a share of the equity even if he did pay the mortgage.

mrcow

liz_uk wrote:

Even though we bought it together as a joint mortagage, I didn`t live there or contribute as I was a full time mother at the time.

But if it's a joint mortgage/jointly owned home, then half of that money is yours.

I'm sorry if I sound harsh, but what if you DO split up? You've got your family to think of.

I'm a full time Mum (have a part time job) and I certainly wouldn't see that as an excuse for my partner to swan off with all the equity in the house if he decided to leave.........

I know that loads here won't agree with me but I'm just offering another perspective.

I'm not saying to demand half to the equity (I think I would though!), just be aware of what you are signing away. £58k is a lot of money! (Especially if you ever ended up as a single Mum!).

btw, please tell me you have mirror wills in place?

mrcow

Are you opposed to marriage? As this would be cleared up if you were to marry?

klaatu

I'd assumed that the £116k was his own money from elsewhere, not from the sale of the house that you'd bought together, as you didn't say. I agree with Rimo2021, you are entitled to a share of the proceeds from the first house, it doesn't matter that you weren't contributing financially or didn't actually live in it.

liz_uk

Should I get my own legal advice on this?? My partner and his solicitor have known each other for years as he is there `family solicitor` so it was very one sided in that room today and I have come away feeling really crap !

They seem to suggest that the house will go into profit anyway over the next few years, but thats not the point.. it might NOT ! I could end up with nothing.

His first g/f left him.. they had a house together and she took half of it, so he is terrified of me doing the same. I don`t expect even half of that £116k, but some of it would be nice. What if he cheats on me, and I end up out on my ear with nothing, these are all things which are plaquing my mind.

He only started contributing towards our daughter when she was 2.5 years old, and that was for playschool fees, and that was only £20 a week. It was only after I got myself into debt that he started paying £30 a week.

I don`t want to sound like the gold digging girlfriend because I`m far from that. I just want to know that my daughter and I will be financially secure if it all goes wrong !

What would be reasonable for me to ask?

liz_uk

mrcow wrote:

Are you opposed to marriage? As this would be cleared up if you were to marry?

No,marriage may be on the cards, but not yet ! It`s not a priority !