Hypothetical Q - Home ownership split upon divorce

Kynthia

poppy10 wrote: »

Wait, doesn't the declaration of trust still take effect after you get married?
It seems unfair if one partner is putting in £100k deposit and the other partner is putting in nothing, that the house will be split 50:50

Who said it would be split 50:50? In short marriages judges try to put each party back to their respective starting positions, although need, any children, and any non-financial relevant factors will be considered. The longer people build a life together and share everything they have the more of an even financial split will take place.

Guest101

cashbackproblems wrote: »

thanks for all the responses! To make it clearer, we have been together for 3 years and yes would look to marry in the next 18 months - 2 years, but from what i have read the courts will still give rights to your partner on property etc which you bought before marriage. I think its fair if she pays some of the mortgage for 2 years she gets that amount back (partially), but not half of the whole property after just 2/3 yrs of marriage and having contributed 0% of the deposit and fees.

This is a big concern as i am putting into it 100k of my own savings, and won't lose it. I will consider a declaration of trust if we don't get married, i haven't discussed this with her but I'm sure she would sign it but apparently it has no legal holding. She has no savings, major job prospects (but a stable income) so is reliant on me. Its not that i expect things to go wrong..but i have seen they can

Regarding offshore account, it is in a non-EU jurisdiction and i have been assured by a tax lawyer that no one would know about this, plus any excess cash i would probably slowly put under my mums name so she can't get it.

Inheritance tax will be a bummer....


tbh you don't sound trustworthy, this marriage isn't going to last

psychopathbabble

Guest101 wrote: »

Don't need a document to gain a beneficial interest, it happens simply by contributing to the mortgage.

I didn't say we needed a document for beneficial interest, simply that if one person is putting in the deposit and the other one isn't then you can get a document that states that person gets the first XX of any profit made from the sale.

Guest101

psychopathbabble wrote: »

I didn't say we needed a document for beneficial interest, simply that if one person is putting in the deposit and the other one isn't then you can get a document that states that person gets the first XX of any profit made from the sale.

Oh you make me smile....


You think a document which entitles one party to extra 'profit' over the other hasn't been challenged in court before?

Tigsteroonie

cashbackproblems wrote: »

Regarding offshore account, it is in a non-EU jurisdiction and i have been assured by a tax lawyer that no one would know about this, plus any excess cash i would probably slowly put under my mums name so she can't get it.

Oh don't you sound quite the catch, I bet she can't wait to marry you. Together three years, and you're thinking of hiding money so that she cannot even think of a claim should you split in the future.

I hope to goodness that she reads this thread before deciding to hitch her wagon to your star.

NBLondon

What tig just said...


The first question of protecting the house if you have funded it entirely yourself might be excused. If one party brings a major asset into the relationship - I don't think it fair that it be suddenly turned into a marital asset to be equally split. Same goes if one party has a major liability like existing debts. But that isn't quite the case here - you are already in the relationship and planning to acquire the asset. Have you explained to your girlfriend that you are planning on buying a house which you might let her live in and contribute to - but it's in your name only? As opposed to buying a place together and needing to establish that you will have contributed a greater portion?


Then we discover that you are already planning to hide other assets which you expect to gain - the offshore account and money in your mother's name. Tax-efficient it may be - but it looks as if you don't trust your girlfriend enough to marry her.


There might be reasons behind this - major discrepancy in incomes/assets; girlfriend's previous track record. But it doesn't look promising...