Getting a divorce, how do I workout the amount we are dividing?

Monkey_Joe

We own 25% stake in a shared ownership property. When we bought it in 2010 the house was valued at £190k.

The mortgage that we took out for the 25% was a repayment mortgage of £41k. The current balance is £36k. We have 20 years left on the term. We put down a 10% deposit of £7k as well when we first took it out.

Spoke to an estate agent today who claimed that the property could be worth around £270k now.

Assuming the estate agent is correct, our 25% is now worth £67,500.

So much will me and my wife will be dividing based on this new figure?

I hate maths.

silvercar

A lot of your figures are superfluous. Your share is worth £67,500, you have £36k mortgage outstanding, so there is £31,500 equity left. Out of that you will have to take off legal fees, estate agent fees and moving costs.

dimbo61

Do you have kids ?

ViolaLass

Monkey_Joe wrote: »

I hate maths.

If you have kids now or ever have them or ever speak to a child, PLEASE don't say that to them. It's not productive and just perpetuates the bad attitude towards the subject that so many have.

getmore4less

This is arithmetic a basic life skill.

Monkey_Joe

silvercar wrote: »

A lot of your figures are superfluous. Your share is worth £67,500, you have £36k mortgage outstanding, so there is £31,500 equity left. Out of that you will have to take off legal fees, estate agent fees and moving costs.

So what is the exact amount that we are dividing?

If the split is 50-50, would it be £31,500 that we split? As in I would have to pay her £15,750 to buy her out?

ViolaLass

Oh boy, I think your issue might be literacy, rather than maths.

ACG

Nobody can work out the exact figure as nobody here knows the figures involved or what your intention is.

Are you selling the house or is one of you looking to buy the other person out?

If the former, then assuming you are both happy whatever amount gets paid in to the bank account pay out the costs and split the remainder 50/50.

If one of you is looking to buy the other out then you would need to look at getting the mortgage put in to that persons name alone and agree a price.

silvercar

Monkey_Joe wrote: »

So what is the exact amount that we are dividing?

If the split is 50-50, would it be £31,500 that we split? As in I would have to pay her £15,750 to buy her out?

In very simple terms yes, but that is provided you have a 50:50 split, you can agree on the market value, can pay the legal costs of changing the deeds and the mortgage.....

HappyMJ

Will she accept £15,750 to "buy her out"? Would you accept £15,750 if she were to buy you out? I wouldn't. Expect to pay more for her share. It's worth much more than that.

Looking at the numbers I'd think you might want a lot more for your share.

You need to agree a price if you want £20,000 from her for your share but she wants to pay £15,750 for it would you be willing to pay her £20,000 for her share if she feels your share is worth £15,750 she should take the £20,000 and be happy. However, I think your shares are worth so much more. You have guaranteed cheap rent on the 75% share I would not give that up. I'd offer her an extra £10,000 for that cheap rent advantage and offer a round figure of £25,000 and see what she says.