Split of Property Equity after break up?

oasisfeverish

My girlfriend is trying to sort out equity that she has with a ex. She has moved out and the ex is still living there with items that were purchased solely by girlfriend.

Deeds: In joint names
Mortgage: In joint names
Mortgage amount at purchase: £108K
Purchase price: £122K
Valuation of property at split: £137K
Outstanding mortgage at split: £101K

Lived together in property: 3 Years 2 Months
Relationship length: 4 Years 10 Months
Relationship Status: Not married

Mortgage Payments: Made by ex from his account.
** To offset this my girlfriend outlays included, furniture, furnishings, grocery, household products, holidays, some bills, take aways, Home & Car Insurances', etc.

Deposit: Paid by ex
Stamp Duty: Paid by ex
Solictors Fees on purchase: Paid by ex
Furniture for complete property: Paid by girlfriend (still in situ)
Furnishing for complete property: Paid by girlfriend (still in situ)

The first 'offer' by the ex, amounted to circa. £5800, he came to this amount as he said that he wants the deposit, stamp duty and solictor fees, plus other expenses taken out of the equity available.

My girlfriend after seeing this and discovering that he had missed out lots of her expenses, worked the figure out to be circa. £11000 (still assuming he gets the deposit, stamp, sols fees, out of the equity available).

The ex then came back to reduce this figure to circa. £7700, saying he forgot to add more bills, for example the cost of broadband, although it was his computer, he spent all the time on it, and that she rarely used it, unless checking a email or two.

So my girlfriend is at the stage of now thinking if he wants to play it this way, she will go through every transaction that ever took place and claim 50% back, plus as the car is her's (she paid all the up keep), and he borrowed it from time to time without paying anything for it, to charge a daily rental charge as if he had hired a car for it's use.

I can see this getting messy, but my girlfriend wants to get what is rightfully hers. Additionally, when they were together she got pregnant and he didn't want her to have it, and although the decision was ultimately hers, he virtually forced her to abort the pregnancy which she did and suffered emotionally, and this is why she does want to get what she is entitled to legally.

Is anyone aware what she is legally entitled to regarding claiming equity that the property has realised in value, plus off setting all the furniture / furnishings, which are still in situ and the ex is now benefiting from, plus her expenses, that she incurred during their relationship.

Also with regards to the ex stating he wants the whole deposit, stamp duty and Solictor fees of the purchase taken out of the equation and therefore reducing the equity available to split, can he do this legally, bearing in mind, these amounts were off set by my girlfriend buying the furniture / furnishings for said property?

tanith

Not got the answer to many of your questions but I can only say that this is going to drag on and on and will drag everyone down who is involved and make some lawyer a lot of money if they cannot settle it between themselves , which it seems they can't . Does your gf have proof such as invoices or bills or bank statements to prove she purchased all these things? Because he can prove by his bank statements all the things he paid for so he will as sure as eggs is eggs want her to prove what she spent...
I started to get involved in a similar scenario during my divorce but we both realised that the only winners would be the solicitors and managed to come to an agreement in the end , neither of us was really satisfied with the result but it meant there was more of our assets to share at the end of the day... I would do all I can to persuade her to bite the bullet and just get the best deal she can without involving solicitors who will bleed them both dry.....good luck I am guessing she will go the whole way and argue her corner....

Lucy_Lastic

I agree totally with tanith.

I have experienced a divorce settlement that went all the way through the courts and one that was done (almost) amicably without even a solicitor. I know which I would recommend.

The pregnancy termination and any other similar emotional matters should not come into this financial matter. Try and get your gf to remain calm and unemotional if at all possible. I know it's easily said, but urge her to try and cut her losses and get it settled as soon as possible. Dragging it out and arguing over every item will help no-one.

Good luck.

oasisfeverish

Thanks for your responses.

Totally agree that if it drags on the only winners are solictors. I say that from previous experience myself, although I managed to agree a figure and only needed a solictor for the legal position of transfering the equity and changing the deeds.

All figures on my GF's part have evidence.

I think what is getting pedantic is that he now wants, half of the TV licence, council tax, etc, whereas I see it that although these were paid by the ex, she countered this by buying all the grocery, furniture, etc. so should cancel each other out.

Personally I see it as;

Valuation: £137K
Outstanding mortgage: £101K
Equity: £36K
Minus his Deposit / Stamp Duty: £15,200K (should she wish to agree to this)
Equity available to split: £20,800K
50% each: £10,400K

As for all the others: Bills, holidays, furniture, furnishings, etc. Just leave them out and call it quits!!

tanith

Your figures look like a very sensible option to me but we are not the people who are emotionally involved who are not calm or rational about it. I would keep plugging away with your sensible alternatives and try to emphasise how much better off she will be without this person in her life.... She has to weigh up her piece of mind against a little extra money and the satisfaction that she didn't let him get the better of her which is probably at the root of her determination.. Neither of them want to be the loser......... but at the end of the day cutting the emotional and financial ties are the way to go to get on with the rest of their lives.... sooner the better... good luck ....

pinkshoes

If everything she paid for was equal to the monthly mortgage payments, then she should get 44.25% of the equity (he paid 11.5% deposit, so owns a 55.75% share in the house), minus half of the stamp duty and solicitors fee. She must also pay half of selling fees.

(you have to see the deposit as a % of the property price when bought, and because the property has increased about 11%, that deposit is now worth 11% more)

They should either split the furniture 50/50, or work out a 2nd hand value for it and one of them buy the other person's half!

someone please check my maths!! i'm typing this very quickly as i have to go visit a customer now!

oasisfeverish

Just an update.

Looks like they managed to settle on £9,500 split. Using the formula I said above.

Her ex is trying to squeeze some extra by stating he wants to split solicitor costs for the removal of her name from the deeds, but are standing ground on the basis, he is keeping the property and will benefit from this in time.

This way both parties feel they have won, which is the ideal outcome.