Share of equity?

Faith1630

Hi there. My partner and I have a joint mortgage. We separated 10 years ago. I initially stayed in the property paying the mortgage, then I rented it out for a time. My ex moved back in around 5 years ago and has paid the mortgage since. He has made significant improvements to the property since I left. He now wants to sell. Will I be entitled to half the equity, or will I be due half minus the money he has spent on improvements?

MyOnlyPost

Assuming the improvements have increased the value of the house and can be proven to have done so, assuming he paid for them himself and you didn't contribute, then yes he is probably entitled to reimbursement of those costs before equity is split, you both benefit from the work he has done by the increased sale price

Separately does he know you rented it out and did you give hime half of the rental profits when you did?

Faith1630

Thank you. Does he need to have proof of the cost of the work that was undertaken? He knows it was rented out but he didn't receive a share of the profits. He wasn't interested in anything to do with it at the time.

kingstreet

Read Jones V Kernott.

http://www.familylawweek.co.uk/site.aspx?i=ed89312

MyOnlyPost

Ok Faith, I don't want to put words in your mouth so please correct me if I am wrong.

It seems from your question that you want/expect half of the equity in the house because you own half of it? However you didn't feel it necessary to pay your ex half of the rental profit even though he owned half of the house.

If that is the case, I am not passing judgement. It's non of mine or anybody elses business. I am just playing devils advocate and trying to get you to look at the whole picture, not just the current one. You could argue that you are in debt to him for half of the rental profit as a separate issue to the equity share when sold

Ozzuk

If it was me then I would work to come to a fair compromise. Forcing an equity split would require lawyers, courts etc and will cost you. Far better to try and do 'what is right'.

That said, it does depend what 'improvements' he made as it doesn't always directly collate to increased value - i.e. 5k kitchen doesn't automatically bring 5k value - could be less, could be more. It could increase in value purely on market.

Try and solve amicably, allow some leeway for the money and time he invested.