Declaration of trust advice

danlondon2

Hi.

My Wife and I are about to buy a house together, the deposit for mortgage is 40k and the stamp duty is 10k. I am paying all 50k myself.

We are paying 50/50 on all other things, such as maintenance, bills, mortgage payments etc.

Would it be fair to say we get 50/50 equity split each, with the wife owing me 25k in the event of any seperation? Or should I be charging interest on the 25k or asking for a higher percentage of equity.

Appreciate any advice offered.

Thanks

Dan

anselld

It would all be in the marital assets pot if you separate. A deed of trust married couples is fairly pointless.

danlondon2

Is It still pointless if we are both in full time employment? And hypothetical question, if we weren't married what would be a fair way to decide based on my original post?

goodwithsaving

We had one. The amount additional my OH put in, was protected in the event of separation, top sliced from any sale. Positive/negative equity is equal. After 5 years I believe assets of a married couple are combined in the event of divorce, but may be wrong. Some split ownership into shares but it's swings and roundabouts really. We preferred the top slice route.
Don't forget to write a will. The share won't automatically go to your wife.

charliewocka

Myself and my partner are currently in the process of buying, with him investing about £90k into the pot. We are drawing a declaration of trust up so that the £90k is seen as a % of the house value, so that in the event of us separating he will get whatever that % is, and all other equity is then split 50/50. Solicitor is drawing this up for us. This allows for him to take value rise of his deposit money (as in that it is an investment and could have earned interest in a savings account or similar situation) rather than it being static.

We are not married but I would have thought that as this was a legally binding agreement it would stand in the event of a a divorce?

danlondon2

Thanks for the replies, does 50/50 in my scenario sound fair?

BitterAndTwisted

No, it doesn't. You're either married, pooling all assets or you're not. This marriage sounds doomed.

danlondon2

Thanks for your thoughts?

Errata

danlondon2 wrote: »

Thanks for the replies, does 50/50 in my scenario sound fair?

No, because your £40k deposit is going to be earning £x and your wife's zero deposit will be earning zilch.

anselld

flosswoss21 wrote: »

Myself and my partner are currently in the process of buying, with him investing about £90k into the pot. We are drawing a declaration of trust up so that the £90k is seen as a % of the house value, so that in the event of us separating he will get whatever that % is, and all other equity is then split 50/50. Solicitor is drawing this up for us. This allows for him to take value rise of his deposit money (as in that it is an investment and could have earned interest in a savings account or similar situation) rather than it being static.

We are not married but I would have thought that as this was a legally binding agreement it would stand in the event of a a divorce?

Not married. Completely different.
Yes, legally binding if drawn up correctly. (No such thing as divorce if not married though.)

Red-Squirrel_2

danlondon2 wrote: »

Thanks for the replies, does 50/50 in my scenario sound fair?

Is absolutely everything else about your marriage 50/50? Will it always be?

I have to say I do slightly agree with Bitter and Twisted (love the name!) When you get married, was it not about 'all that I have I share with you' or some similar line?