Declaration of trust/ Post-nup/ simple letter?

LunaKamelia

Much needed help!!! Not sure if this is the right forum,but anyway here goes. My husband and I have been fortunate enough to get the keys to our first home together. The property was bought by the help of my mother who gave us the cash (early inheritance) to buy it, so no mortgage.

My mother however, has stipulated that if in the event of a separation/divorce my husband should not have any legal right to gaining half of the property, therefore wanted my solicitor to organise a document to that effect.

Having spoken to solicitor in the family department, he has told me that a post-nup is the way to go and that it would cost in the region of £2500+vat maybe more!! Its money we dont have, as I have not too long ago had a baby and am not currently working.

Having asked my solicitor to therefore draw up a declaration of trust, he has turned around and told me that I might as well write a letter myself stating our intentions and getting my husband to sign it.

I know its very much a cynical thing to talk about and ultimately the house will eventually go to our daughter and perhaps her future brother/sister.

Can anyone give me advice and how to proceed!

Thanks so much

Emmzi

I'd start with a quote from another solicitor? Don't have any idea if this is expensive or not but it seems it!

whysitallsocomplicated

get it done by a proper solicitor, either a pre nup or deed of trust. Make sure it is witnessed by someone that couldnt be classed as anything but independant. Make sure the document states that all parties have had the chance to seek independant proffesional advice prior to signing.

Imagine a messy break up (hope it wont ever happen, but you never know..).

You produce a letter your OH has signed, no independant witness.

You end up in court with the OH claiming:

1) he was drunk
2) he was pressurised
3) he didnt understand the documnet he was signing or the liability
4) that he didnt even sign and although it looks like his signature it could be forged.

I am a cynic, and in these sort of matters everyone should be and cover off all the angles from which something could come back and bite you.

if it costs £20.00 or £200.00 or even £2000.00 now its still nothing compared to losing 50% of the value of the house if things go pear shaped in the future.

Get the document written and then hopefully enjoy the rest of your lives together and forget all about it. But in case it all goes wrong, at least its there if you need it.

just my thoughts

getmore4less

If you want it to be like this then he should not have to contribute to the capital value of the place ever

No maintanence
No improvements
........

How do you fund all this yourself especialy if you become a SAHM.

Presumably the house is in your name only.

CloudCuckooLand

Ask for "tenants-in-common" ? and specify the 99% - 1%. Write wills so the 99% goes to the child/ren.

You wouldn't begrudge him 1%, as he's going to be feeding and clothing you and the kids?

mlz1413

Many years ago I bought a house with my then boyfriend and we put in different deposits. We asked the solicitor to note that if the house was ever sold we both got our deposits back before the profit was split equally. And this was what happened when we split.

Guess now you would also need to say how profit / loss was split!

I would ask a couple of other solicitors in your area what your options are and how much they will be, most solicitors do a free half hour appointment.

Whilst I understand your mothers concerns that it is her money and doesn't want a possible ex-husband to benefit from the gift I think there must be simplier ways than insisting 'he doesn't get half' ie she has gift returned if you sell.

If your mother feels this strongly you and husband should also sort out your wills with clauses for what happens if you die first and whilst your mother is still alive.

Orpheo

If I were your husband, I would refuse to sign. What would you do then? Divorce him? In any case I would have refused conditional financial help from the mother-in-law.

Will your husband be contributing financially to the household, including bills, raising any family, upkeep and maintenance of the property?

BitterAndTwisted

Who actually owns the house right now? If it was bought with your mother's money it would have been more straightforward if she had bought it and it stayed in her name before any discussion took place about future ownership. In fact, the discussion should have taken place a long time before the purchase was made.

LillythePink

We have had an agreement drawn up between my OH, I and my parents.

We bought a house with a wing, they contributed £200k to the purchase so technically, just under a third of the purchase price.

Our agreement says that in the event of the sale of the house, then they get their money back plus a % of the profit and that while we own the house, they have lifetime enjoyment.

Now, whilst our circumstances are different, it did cross my mind re the divorce situation - if we divorced, then the house would need to be sold as I couldn't afford to buy him out, so where did that leave my parents etc etc

Our solicitor said that although there is this agreement, it wouldn't be binding until lodged with the court - so technically, it was a trust thing.

It possibly could have been easier for her to buy the house and then rent it to you for £1 per year or something silly - that way, in the event of a breakup, you don't have half of anything to give him!

poppysarah

Who owns the house now?

getmore4less

mlz1413 wrote: »

Many years ago I bought a house with my then boyfriend and we put in different deposits. We asked the solicitor to note that if the house was ever sold we both got our deposits back before the profit was split equally. And this was what happened when we split.

Guess now you would also need to say how profit / loss was split!

I would ask a couple of other solicitors in your area what your options are and how much they will be, most solicitors do a free half hour appointment.

Whilst I understand your mothers concerns that it is her money and doesn't want a possible ex-husband to benefit from the gift I think there must be simplier ways than insisting 'he doesn't get half' ie she has gift returned if you sell.

If your mother feels this strongly you and husband should also sort out your wills with clauses for what happens if you die first and whilst your mother is still alive.

Protecting cash deposits is the incorrect way to deal with equity.
The deposit buy a share of a variable value asset and that is what should be returned.
A lot of people get this wrong and it can cause issues with price drops and negative equity.


The advantage of the outright gift is it eventualy gets removed from the mothers estate.

Gifting with reservation is a loan so remains in the estate.