Buying out ex-partner: do we have to value the house?

espritlibre87

My ex husband and I took out a joint mortgage in 2012. We have been separated nearly two years (although not legally). He moved out of the house 18 months ago but has continued to pay half of the mortgage.

This evening he told me he wants to discuss 'options' in the new year. I recently had a payout and have put some money aside as his share in the house. I calculated this based on half of the deposit we paid, and half of the capital paid off to date. I told him that I have this money set aside for him. However he then insisted that we get the house valued and that his share be based on its current value. The house is worth roughly £40k more than it was when we first bought it, so he would profit hugely from this.

I have no intention of selling the house right now - it's my home. My feeling is that he should get back what he has paid in, rather than profiting from current house prices. I pointed this out - what if I sold several years down the line but the house wasn't worth as much - I would end up with less money than him despite being the one to continue to pay. He just insisted that he is legally entitled to half of whatever the house is worth right now.

I would really appreciate some advice on this matter. For starters, I don't have an additional 20k to give him on top of the amount I worked out (which would be around £11k). Is he right about being legally entitled to this? Do I have the right to refuse to get the house valued? Or refuse to buy him out at this stage? I read somewhere that he still has the right of occupancy and could in theory move back in at any given time, which is definitely not something I would want. I changed the locks to the house about a year ago, and he doesn't have a key, but again I've read that should he want one, he would have the right to demand this.

The fact is, he chose to move out. He is terrible with money and has had several court orders in the past year for racking up debts. There have been many occasions he has either failed to pay his half of the mortgage, or hasn't paid the right amount - and I have then had to chase him for the full amount (he always pays eventually). This will be the third time in 14 months that he's said "I'm looking to get my own place soon so we need to discuss the house" - the other two times, nothing came of it. He often has no idea what he's doing with his life from one month to the next. However he was different tonight - smiling and very smug, telling me he's done his research and knows his rights.

Any suggestions/advice?

Rikki

He is entitled to half the price of the value of the house now. As if you were to put it on the market and sell it.
It unfair for you to expect him only to get back what he's paid in rather than benefit from the value of the property when you buy him out.

You will also have to arrange your own mortgage in order to remove him from the title deeds.

Thrugelmir

You need to consult a solicitor and resolve matters formally. Do you have any children?

loskie

I am going through this too just now. We agreed a value which yes does take into account the increase in value. We did not get a formal valuation done though.
He is entitled to that increased value just as you are.
The mortgage will be paid off and a new one started in my sole name(same lender). My solicitor and that of my ex will deal with the "transfer of title". For a straightforward deal the solicitors fees are £600 which I thought a lot but want it sorted.

Mojisola

espritlibre87 wrote: »

My ex husband and I took out a joint mortgage in 2012. We have been separated nearly two years (although not legally).

So he isn't your ex-husband?

You won't be financially independent until you divorce and get a legal financial settlement.

You could buy him out of the house now and he could come back later and ask for more money as part of the financial split.

espritlibre87

No, we are legally still married. Which I know complicates things. No children though.

It does seem unfair that his share would be calculated based on the house's current value rather than what he has physically paid. I'm not selling any time soon, and this to me looks like he could potentially come away with more money than me (if for example I sell in a few years and the house is no longer worth as much) despite the fact that he will then stop paying.

Somebody suggested I could propose a legal agreement in which I pay him the amount I have put aside upfront, and agree that in the event of a sale he also gets a fixed amount (perhaps a further £10k) regardless of the sale price. Has anybody ever done something similar? Eg agreed a particular sum/arrangement, rather than a 50/50 split?

Another question - can he force me to sell the house?

getmore4less

If you are worried about the value dropping wait and give him less.

The risk it is goes up even more.

Count yourself lucky he has not moved someone in to take his place to pay his share or charge you rent.

getmore4less

espritlibre87 wrote: »

No, we are legally still married. Which I know complicates things. It does seem unfair that his share would be calculated based on the house's current value rather than what he has physically paid.

Offer to sell it to him on the same basis?

You expect him to pay the mortgage but not benefit from the equity that debt services.

If you had both paid 1/2 each in cash you think he should only get his initial cash back?

Reality check needed?



Have you checked the lender will let you take on the mortgage on your own?
Stick it on the open market and buy it yourself

Thrugelmir

espritlibre87 wrote: »

Another question - can he force me to sell the house?

Yes he can. An expensive business where no one ends up winning. If you dig your heels in. Then costs could be awarded against you. Judges dislike couples that waste the courts valuable time with trivial matters.

I know nothing of your circumstances etc. Take a pragmatic approach and compromise. The stress you'll endure in fighting with him every inch of the way won't be worth the money. Not suggesting it will be easy or without difficulty for you.

I lost a lot financially in my divorce. Not losing my sanity was priceless. Moving on quickly with ones own life is far more important.

discat11

Get a a valuation and see where you are after that.

It's not as if he stopped paying anything towards the mortgage when he moved out after all, he contributed fairly and is entitled to a fair share of the true value of the property.

This may not be what you want to hear and we all appreciate that you may well have been treated unfairly in his decisions but I doubt you'd think it fair if the roles were reversed.

Tigsteroonie

espritlibre87 wrote: »

It does seem unfair that his share would be calculated based on the house's current value rather than what he has physically paid.

Why? Your share is based on current value and not just what you physically paid; why shouldn't his be the same given that he has continued to pay? No doubt he has also been paying for accommodation elsewhere, so effectively he had 1.5x housing costs where you've had 0.5x.

You'll need to re-mortgage in your sole name; it will be as though the two of you sold the house at this point, and then you bought it. The equity up to that time is shared; the equity going forwards will be yours. If you think the value could go down, you could always sell instead of buying him out.