Buying out in divorce

moonpenny

Hope someone can shed some light on this situation!

If a woman is buying the man out (in a divorce settlement) should the man be expected to pay half her costs of doing this?
She wants him to pay for a survey (house was originally surveyed when they bought together) and all fees associated with her buying him out.

Surely they are her costs as it is her new mortgage.

He realises will have to bear the costs of having his name removed from the original mortgage.

fluffnutter

It will depend on the settlement. Like everything else it needs to be negotiated.

BitterAndTwisted

My own feeling is that all of the costs should be shared 50/50, as both parties will be benefiting equally.

peachyprice

It too would say 50/50, she's getting the benefit of the house, he's getting the benefit of having his name removed from the mortgage enabling him to move forward with his life.

Februarycat

I paid for all my fees associated with the house when I did this when I got divorced.

janninew

I was divorced a good few years ago and bought my ex out the house. I paid for all the fees involved and he got a cash settlement from me and his name taken off the mortgage. I didn't need a survey doing though as there was a lot of equity in the house. It was never suggested to me that my ex should pay my conveyancing fees.

fluffnutter

Are you asking what people think should happen, i.e. what seems practical or moral? Or are you asking what happens usually, i.e. there's some sort of precedent or law?

Practically and morally, whomever is benefiting should foot the bill. That answers the first question. In answer to the second, it depends. All divorces are different and all financial decisions are open to negotiation. It's up to them (or their solicitors) to thrash it out.

Thegirl

I don't think it makes any difference if it is a man or a woman doing the buy out.

Personally, I disagree with paying anything towards the survey fee. She could stay with the same provider and not incur a survey fee, so I would argue that was her choice.
Mortgage fee, I would say again she could stay with the same provider and minimise costs. Also, what if she chooses a mortgage with a higher fee but lower rate, would you get a say? My guess no, so pass on paying that too.
As for the fee of having your name removed from the mortgage, I would say at best you split that 50/50%. If you sold the property there would be no land registry fee to pay (I am aware there would be other fees) so why should you be incuring one because she's keeping the house?

My soon to be ex husband is buying me out. In my situation my husband has offered me £X to sign the house over to him. I'm not paying any of the costs associated with him having the mortgage put in his name.
But given that when we bought this house he spent exactly £0 and I spent more than four times the £X I'm being offered to be bought out (including a shiny BMW for him), I don't think he would consider asking either.

StuC75

Im currently going through a transfer of equity with same lender and they requested a re-valuation.. so even staying with the same lender doesnt avoid such fees!.

as Im retaining the property I am paying the transfer of equity fees and sols fees in dealing with this..

Have asked for a contribution from the Ex (but not holding out hope there..)..

In my case theres no financial consideration as only been in two years so the Ex did take into consideration that theyve not paid towards for the past 7 months (officially - longer if look back further).. and that if was sold on the open market (at lower than asking) that when combined with selling fees would near enough wipe out most of the equity (bought with 10% deposit)..

Thegirl wrote: »

I don't think it makes any difference if it is a man or a woman doing the buy out.

Personally, I disagree with paying anything towards the survey fee. She could stay with the same provider and not incur a survey fee, so I would argue that was her choice.
Mortgage fee, I would say again she could stay with the same provider and minimise costs. Also, what if she chooses a mortgage with a higher fee but lower rate, would you get a say? My guess no, so pass on paying that too.
As for the fee of having your name removed from the mortgage, I would say at best you split that 50/50%. If you sold the property there would be no land registry fee to pay (I am aware there would be other fees) so why should you be incuring one because she's keeping the house?

My soon to be ex husband is buying me out. In my situation my husband has offered me £X to sign the house over to him. I'm not paying any of the costs associated with him having the mortgage put in his name.
But given that when we bought this house he spent exactly £0 and I spent more than four times the £X I'm being offered to be bought out (including a shiny BMW for him), I don't think he would consider asking either.

moonpenny

Thank You! everyone.

I was asking what the legal position was really.

There is equity in the house and he is prepared to walk away with less than his share but she is offering much less plus expecting him to share the costs of her buying him out.

The way I see it, when he gets a new mortgage is she going to pay half his costs? - I don't think so!

StuC75

The main point is how much does he want out of the combined mortgage? Even if the house was being sold there would be other fees to be covered, along with someone possibly not offering full asking price; so some form of concession comes into these settlements...

moonpenny wrote: »

Thank You! everyone.

I was asking what the legal position was really.

There is equity in the house and he is prepared to walk away with less than his share but she is offering much less plus expecting him to share the costs of her buying him out.

The way I see it, when he gets a new mortgage is she going to pay half his costs? - I don't think so!