Ex husbands share of house

micki

My daughter is going through a divorce. She works part time and has 2 children, 2 + 7. Both her and her husband's name are on the mortgage.
He's asking for half of the selling price. Are there any set rules which say what proportion he's entitled to.

Any advice would be appreciated

Micki

Bossyboots

No, there are no set rules. Generally the starting point is 50/50. This can then be moved one way or the other according to individual circumstances. For instance, if one party put in the deposit they could reasonably be expected to have their share increased to reflect that. Very generally, the length of the marriage would also make a difference. Although one party may have been working, if the other party has stayed at home to run the house and raise the children their contribution would be counted as just as valuable. In addition, the future pension income of either party would be a factor in who gets what.

In addition the party with whom the children live would expect to be able to have a larger property. This is usually dealt with by the other party having a "charge" on the property to be paid out when one of a set of circumstances arises, usually the youngest child leaving full time (A'level) education.

This is a very rough guide to the position. It does depend on several factors and proper advice from a solicitor is probably the best thing for your daughter to do to ensure a fair settlement. In addition, any settlement needs to be incorporated into a proper legally binding document.

Prudent

I think the usual presumption is a 50/50 division of assets although there can be exceptions to this. Remember that a house is only one of a couples assets (although often the largest). Other assets might be cars, savings, furniture etc. Another large assest is often the pensions. If one person's pension is higher than the other's this will need to be offset. This can be done either by a transfer of some of the pension or by the party with the lower pension receiving more of the cash from the sale of the house.

filigree_2

There aren't any fixed rules because it's so complex. I doubt he'd get half the market value though, the most he could ask for is half the equity ie half of what money is left after the mortgage is paid off.

The law recognises that the homemaker makes an equal contribution because she cares for the family, even if she doesn't earn much. Don't let her be bullied into giving up her home because she doesn't pay exactly half the bills.

They need to think about what other assets they have like pensions and savings, and also if they have any debts to pay off. If your daughter hopes to stay in the home with the children, she'll need to find some way to pay the mortgage.

I would advise her not to make any offers or decisions until she has had expert advice. Solicitors can be a bit bloody minded and insist on fighting for the lion's share. They could try mediation to help them discuss their finances. The local CAB should hopefully have a list of local mediation services.

There is a forum called https://www.ondivorce.co.uk where you could post your question, but you (or your daughter if she posts) would be asked how much the home is worth, what their assets are etc. If she can suggest some figures someone might be able to help her work out a fair settlement.

kirsty1_2

My friend has just gone through this and bought her husband out of the mortgage but only a third of is beacause as they have children a third belongs to them until they leave home. She did not know this until she went to a solicitor. I hope this has been of help and good luck for the future.

micki

My daughter did put the deposit down on the property because she had just been made redundant. When they separated he cancelled all his pensions and insurance. Her solicitor has offered him the endowment and a cash sum but this does not add up to half of the selling price. I'ts about £10.000 short.
With this he could easily put down a deposit and buy another property. Before my daughter had the children she was in a very good job and when her husband didn't get work it was she who paid the mortgage, in fact the mortgage has always come from her salery. This isn't to say he didn't pay his way because he did. He doesn't want the divorce so he's fighting all the way.
Surely the children have to have a home and if she was forced to sell she would have to claim benefits.
Sorry i'ts so long but i'ts worrying

filigree_2

Even if he cancelled his pension payments and other insurance, there will still be money in the funds. If he surrendered or sold any policies he would have got a lump sum payment. If he has been making payments into pensions etc for years he can't get away with claiming that they don't exist any more. If they go to mediation they will both have to provide proof of all their finances, and with the whole picture in front of them they can come to some arrangement.

It's hard to know what's best since I don't know any of the figures, but here's a few ideas that others have followed:

Sell the home and move to somewhere smaller/cheaper, to release some money for the father

Dad continues to pay half the mortgage, when youngest child is 18 the home is sold and he gets half the profit

Dad doesn't pay the mortgage, when the youngest child is 18 the home is sold and he gets 30% of profit

Mother goes back to full time work, gets a larger mortgage and pays him a lump sum

Good luck to your daughter, it isn't a happy experience.

kirsty1_2

Her solicitor is not doing her job properly if she has failed to mention that a third of the house belongs to the children. Get her to seek further advice

Bossyboots

kirsty1 wrote:

Her solicitor is not doing her job properly if she has failed to mention that a third of the house belongs to the children. Get her to seek further advice

I'm sorry to say that is the most bizarre thing I have ever heard and is entirely wrong. None of the property belongs to the children. It we wanted to, my husband and I could sell our house without recourse to our children and keep all the money. We could make wills leaving all the property to someone entirely different. On the flip side, the children have no say in the house and could not instigate a sale themselves. There has to have been some other arrangement previously where the children aquired part of the property (perhaps as a tax advantage). Children do not acquire rights to a property simply by being offspring.

Spendless

I've never heard of it either.

In my friends case she has remained in the house with the kids and a charge has been put on the property to be paid when the youngest is 18/leaves full-time education.

kirsty1_2

You will find during a split it is different as the children have to be housed and the partner leaving without the kids can only ask for a third of the house I know this because my friend has just done it.