Divorce and mortgage, what is fair?

Aaiieeee

Hi all,
Since my wife left last June I have been solely paying the mortgage for the last 10 months which amounts to £8900. This puts me out of pocket by £4450 and she is effectively the same amount better off (sure, she has her own rent to pay - but thats not my problem any more). The mortgage is the equal financial responsibility of both of us (as I understand).
I am pretty sure that divorce is on the cards this year and am wondering if the sale of the house is truly a 50/50 split since shes not contributed for the last few months. Or, would it be fair for me to claim £4450 of her 50% share? Or would I just be a able to claim the capital gain over that period (dunno how much, but can't be more than £1500)?

I'm not interested in being difficult in this process but since she has decided to live her own life and not contribute I just want what is fair and due to me.

If what I suggested above is fair then perhaps she will agree and then we can look to do this without any lawyers involved and save £££ that way.

Any thoughts, advice, or otherwise welcome.

Thanks.
W

shop-to-drop

Have you been living in the house?

If so how much would market rent be on your joint property?

You can claim for her half of the mortgage but she could counterclaim for rent from you. Who would owe who money then?

You need to think about this as objectively as you can. So that you can finalise things as quickly and fairly as possible.

DUTR

Aaiieeee wrote: »

Hi all,
Since my wife left last June I have been solely paying the mortgage for the last 10 months which amounts to £8900. This puts me out of pocket by £4450 and she is effectively the same amount better off (sure, she has her own rent to pay - but thats not my problem any more). The mortgage is the equal financial responsibility of both of us (as I understand).
I am pretty sure that divorce is on the cards this year and am wondering if the sale of the house is truly a 50/50 split since shes not contributed for the last few months. Or, would it be fair for me to claim £4450 of her 50% share? Or would I just be a able to claim the capital gain over that period (dunno how much, but can't be more than £1500)?

I'm not interested in being difficult in this process but since she has decided to live her own life and not contribute I just want what is fair and due to me.

If what I suggested above is fair then perhaps she will agree and then we can look to do this without any lawyers involved and save £££ that way.

Any thoughts, advice, or otherwise welcome.

Thanks.
W

Is there much equity in the property? Can you afford to by her out?
Practically it never (hardly) ends totally ammicably, seek legal direction.

Aaiieeee

shop-to-drop wrote: »

You can claim for her half of the mortgage but she could counterclaim for rent from you. Who would owe who money then?

Wow thats a scary thought, its quite possible that the rent would be higher (based on what neighbors are renting for).
Its funny how I suddenly don't want 'fair' when I stand to lose.

As for equity in the property, I strongly believe there is but haven't had it valued but to be honest am not sure I want to buy her out. The only reason I go in the front room is to do the ironing, the only reason I go in the dining room is to hang the washing out when its late or raining and I never go in the back bedroom. I don't need a 3 bed house and really would prefer not to let out any rooms.
I can comfortably afford the mortgage alone but I assume that if I bought her out the loan-to-value would shoot right up and cost me lot more. Plus, its 'our' house; looks the way it does because of decisions we made. I don't think I want to live here.

It feels like I'm going to take another hit in this area and lose out somewhat.

Seems like valuation is probably the next step, and determining what solicitors fees would be if it goes to that.

gizmo111

Does she want to buy you out?
How long have you been married?
Who paid the deposit?
What are the redemption fees on the mortgage?

clearingout

from her perspective...why should she pay the mortgage of a property she has no use of? Particularly as she is having to pay rent elsewhere.

Are there any children involved? Whether 50/50 is likely depends every much on whether there are dependent children of the marriage, how long you were married and what your respective incomes are. I wouldn't expect to receive additional monies just because you have been paying the mortgage alone - your relationship has broken down, she has to live somewhere.

You would be well advised to start divorce proceedings and get it all sorted so it's not hanging over you and you don't know where you're at financially.

DUTR

clearingout wrote: »

from her perspective...why should she pay the mortgage of a property she has no use of? Particularly as she is having to pay rent elsewhere.

Are there any children involved? Whether 50/50 is likely depends every much on whether there are dependent children of the marriage, how long you were married and what your respective incomes are. I wouldn't expect to receive additional monies just because you have been paying the mortgage alone - your relationship has broken down, she has to live somewhere.

You would be well advised to start divorce proceedings and get it all sorted so it's not hanging over you and you don't know where you're at financially.

Come on, be fair, I am quite sure I have seen posts where the tables are turned eg , male gone female in the property, no kids invloved, yet the replies(maybe not from you) are that the absent person should still contribute as they are both on the loan agreement.

DUTR

Aaiieeee wrote: »

Wow thats a scary thought, its quite possible that the rent would be higher (based on what neighbors are renting for).
Its funny how I suddenly don't want 'fair' when I stand to lose.

As for equity in the property, I strongly believe there is but haven't had it valued but to be honest am not sure I want to buy her out. The only reason I go in the front room is to do the ironing, the only reason I go in the dining room is to hang the washing out when its late or raining and I never go in the back bedroom. I don't need a 3 bed house and really would prefer not to let out any rooms.
I can comfortably afford the mortgage alone but I assume that if I bought her out the loan-to-value would shoot right up and cost me lot more. Plus, its 'our' house; looks the way it does because of decisions we made. I don't think I want to live here.

It feels like I'm going to take another hit in this area and lose out somewhat.

Seems like valuation is probably the next step, and determining what solicitors fees would be if it goes to that.

You can check in Zoopla to see if there maybe some equity in the property based on the amount of laon you have remaining,
if you don't want to buy her out, then sell the place, split the difference and move on, technically the ex should pay their share of the loan, realistically it may not happen, however make a descision and follow the route to conclusion and get the chapter closed, as hanging on to stuff like the mortgage n that, appears as if you are still bitter about the split and I don't mean that harshly.

jamesml

clearingout wrote: »

from her perspective...why should she pay the mortgage of a property she has no use of? Particularly as she is having to pay rent elsewhere.

I don't agree. She is jointly liable for the mortgage, she signed the mortgage app and the marriage certificate, and then decided to change her mind. All of our decisions have costs - some emotional, some physical, some financial. Just because she doesn't want this any more doesn't give her the right to walk away and not pay her debts any longer. She may have no use of the property but that is what she chose - she is still liable. She may have no use of the property and may have to rent somewhere else - but equally the OP now have an additional cost to meet as well, since she is no longer paying her half.

To the OP - I think it depends what you want to do. Given she hasn't contributed since xx date, try and work out the value of the property at that point in time. Mock up a completion statement based on the value at that point in time as if you sold the property, and then use that as the basis for what she is owed. This essentially assumes that you sold the house when she left and you both went your own separate ways. If you decide to sell, pay her this out of the proceeds. If you decide not to sell, buy her out using this figure, assuming you can afford to. Just make sure the final amount due takes into account all costs that will be incurred - mortgage redemption, solicitors fees, estate agents fees, all of it. Practically this also depends on whether you have the affordability to put the house in your own name and potentially remortgage etc. Alternatively if you don't want to sell and you don't have the cash to buy her out, you agree with her to keep her name on the mortgage for the moment but you fix the value, and you keep paying. You could offer her inflationary interest on the net figure to her based on the value when she left, payable when you do finally sell the house. Only problem is she might want to get another mortgage before you sell the house.

You need to decide whether you want to keep it or not - sounds like getting rid will be your preference and will be the easier choice in terms of dealing with the impact.

Hope you get things sorted - feel for you.

clearingout

jamesml wrote: »

I don't agree. She is jointly liable for the mortgage, she signed the mortgage app and the marriage certificate, and then decided to change her mind. All of our decisions have costs - some emotional, some physical, some financial. Just because she doesn't want this any more doesn't give her the right to walk away and not pay her debts any longer. She may have no use of the property but that is what she chose - she is still liable. She may have no use of the property and may have to rent somewhere else - but equally the OP now have an additional cost to meet as well, since she is no longer paying her half.

Legally liable, yes, in that the mortgage company would chase both parties if payments aren't made and both parties will be liable for any debt should repossession take place. However, if you were to consult a divorce solicitor, many would immediately tell you that all things being equal (which they often aren't in marriage), it is reasonable that the person in the marital home pays for the priviledge of doing so. You are living in a house you co-own all on your own - it is reasonable that the co-owner charges 'rent' to allow you to do so (or puts in their own tenant to cope with their half of the mortgage) or rather than go down that route, they take charge of all the costs.

Of course, it often isn't that simple when differences in wages, the need to keep a roof over children's heads etc. is taken into account. But that's the basic starting point that any solicitor will tell you - his ex has to live somewhere and paying for two places is beyond the means of all but those in the highest paying jobs. For this reason, I have suggested that getting legal advice and getting on with the divorce is the best course of action so that he is able to move on with his life as quickly as possible with as much financial security as possible. Perhaps the worst thing the OP can do is take advice on buying out etc. without understanding the legal implications of such actions. At the very least, no money should change hands before a financial order (either by consent or court ordered) is in place.

Aaiieeee

Thanks all, raises some interesting questions. I'm thinking of offering her a deal which should hopefully be favorable to her (I think I will make a loss, but it will make things so much more simple (hopefully..)).

There are no children (thankfully), married almost 5 years, she doesn't particularly want the place, the deposit is 50/50 and so presume any fees/costs will be split equally. I have recently become a 40% tax payer (that that for some reason makes any difference (it seems to bring its own complications generally))

I think I want a clean slate, even if I make a bit of a loss. I want my own place, without the memories, without the dragged out complications.
I just hope I can get enough money out of this to get back onto the property ladder!