Fair sharing of equity

rascalmarskell

Partner and I (not married or civil partnership) are splitting up. We own a house together with a mortgage and I’m trying to work out a fair split of the equity.

Am I right in thinking that if we take the original house price and the current value and work out the percentage increase then work out exactly what she has contributed to paying off the mortgage and house improvements then add the percentage increase this will be fair?

I have paid for most of the improvements and a large deposit on purchase.

TIA

AnotherJoe

That's one way which most people would say is fair. However it's not necessarily only about money, for example suppose one partner supports the other in ways which enable the other to earn more at the detriment of their earnings. Ultimately it comes down to what you can agree between you.

getmore4less

Not a very good way to do it if you include mortgage payments.

You need to work out the debt been serviced.

Eg if you had bought 50:50 you with cash and her with a mortgage.

If you count mortgage payments over time she owns more than you.

input to maintenance and improvements also need comparing to the ownership shares and adjusted.

What was the agreement/expectation when you bought, in the absence of something written you need to get concensus between you what the intentions were.

rascalmarskell

Hi getmore4less and another jo. Thanks for replies. In response to your questions. I paid the deposit, we both paid the mortgage and I paid most of the refurbishment costs. There were a few costs we shared.

I having been working through all the bank statements and credit card bills and receipts, as well as getting current mortgage balance which will be minuses from the original purchase price. With all the joint stuff split 50:50 this gives me a total amount that partner has paid in. I was then thinking I add the percentage increase in value to this to get a fair final figure.

Does that seem correct?

rascalmarskell

Sorry, should have added we shared the painting and decorating, everything else has been done by my dad or tradesman.

Our original title deed only accounted for the deposit as everything else was meant to be 50:50, but this didn’t happen. I just want to make sure my calculations are fair to us both and reflect the financial input.

getmore4less

If you only agreed the deposit would be protected was on an equity base or get your money back?