Declaration of Trust issues

-taff

In 2003 you had a DoT drawn up to accurately reflect the unequal amounts of money you contributed to the deposit on the house, and you also added the equity was to be split 50-50.

Forward five years, you split up.


At that point, there was nothing wrong with the original DoT. I t accurately reflected what was happening yes?

At that point in time though, since you have been paying the mortgage, you want to change the original D0T to now say you've been paying the mortgage since 2008 and you want more equity split.

I can't see how the original D0T was wrong or incorrect if you were paying 50-50 to the mortgage at the time? BTW your solicitor was your independent legal advice.....Otherwise you'd have gone to one solicitor to ask them what they thought, then another to do the DoT.....

getmore4less

-taff wrote: »

In 2003 you had a DoT drawn up to accurately reflect the unequal amounts of money you contributed to the deposit on the house, and you also added the equity was to be split 50-50.

Forward five years, you split up.


At that point, there was nothing wrong with the original DoT. I t accurately reflected what was happening yes?

At that point in time though, since you have been paying the mortgage, you want to change the original D0T to now say you've been paying the mortgage since 2008 and you want more equity split.

I can't see how the original D0T was wrong or incorrect if you were paying 50-50 to the mortgage at the time? BTW your solicitor was your independent legal advice.....Otherwise you'd have gone to one solicitor to ask them what they thought, then another to do the DoT.....

The original DOT failed to adequately protect the £37k that the OP invested in the property

problem is the OP agreed to something they did not understand

-taff

getmore4less wrote: »

The original DOT failed to adequately protect the £37k that the OP invested in the property
problem is the OP agreed to something they did not understand

Nope

Martina12 wrote: »

A year later I asked our conveyancing solicitor to protect my primary share of the property by means of a Declaration of Trust as we had a child by this stage. It was drawn up with the correct amounts of money put in by each of us shown but the equity, should things go wrong, should be divided 50% each once mortgage payments etc are taken out.

It protected the original amount. It's the equity split that is being complained about.


Edited bit - I have a DoT. It shows the amounts put in by each of us for the deposit. If the house is sold, I receive back my oringal deposit, plus a 50/50 share of any built up equity.
I assumed that is how her D0T is drawn up.
I could be reading it incorrectly though. It may be that it shows the deposits made, but says that after a sale, all proceeds are to be split 50/50 not taking into account her original investment.

Martina12

I put in £43k and my ex partner put in £6K. I wanted to protect my larger investment in the property but the solicitor did not give me any other option other than the 50/50 split despite me questioning it. I did not know that I could have had proportionate shares which would have been much fairer and meant this could have been sorted at the time of the split in 2008.

I could not put the house up for sale in 2008 because of the equity split in the DOT and the situation has dragged on, with the advice of my solicitor to stay put with the children.

I did arrange one mediation session in 2008 to try to sort this out with a trained mediator but it was disastrous with my ex partner becoming abusive and refusing further mediation.

On the child maintenance front my ex has been paying £300 a month since 2008 as a direct debit into my bank account but he doesn't clarify it as maintenance or anything although this was a verbal agreement between us in 2008. I have contacted the child maintenance service as I would like to formalise this as child maintenance. Surprise surprise my ex has stopped all maintenance in protest. Yet another problem to deal with, I am also worried that he will say this is for the mortgage I feel like I cannot win here.

I am seeing a solicitor this week and will pick out some of the issues given in advice here so thank you and if any of you think of anything I could do or anything relevant please let me know!
M

getmore4less

-taff wrote: »

Nope



It protected the original amount. It's the equity split that is being complained about.


Edited bit - I have a DoT. It shows the amounts put in by each of us for the deposit. If the house is sold, I receive back my oringal deposit, plus a 50/50 share of any built up equity.
I assumed that is how her D0T is drawn up.
I could be reading it incorrectly though. It may be that it shows the deposits made, but says that after a sale, all proceeds are to be split 50/50 not taking into account her original investment.

Problem is that is the wrong way to do proper equitable splits as it fails to take account of the share owned by the capital investment.

It's a very common error that people make because it sort of looks OK when the investment is relatively small to the debt obviously breaks down if large.

eg £100k house £99,999 deposit £1 mortgage house doubles split is £150k £50k, clearly nonsense but that is the basis of that type of agreement.

Any agreement should work for all values as a stress test.

A get your money back agreement is in practice an interest free loan to the other party, some are happy with that but don't really understand that is what they are doing.

Thrugelmir

Martina12 wrote: »

I am seeing a solicitor this week and will pick out some of the issues given in advice here so thank you and if any of you think of anything I could do or anything relevant please let me know!
M

Nothing has changed since 2008. You are in exactly the same position as then.