Being bought out of Joint Share Mortgage

MrUnsure

Hi,


Need some advice. Recently separated from my wife, having only purchased a new property together a few months ago. My ex wife will be in a position to buy out my share of the equity and bring the mortgage down to an affordable level.


Currently I pay the mortgage in full myself (despite not living there), and I have always paid the mortgage and most of the bills on previous properties while she has looked after child care expenses.


What I need to understand is, am I entitled to a greater share of the equity in the property on the basis that I have paid it in full, or would it basically be 50/50 split as agreed when purchasing the property?


I want to ensure that I am getting a fair deal, which as current payments go I am not getting, on the basis that I am paying the mortgage whilst not living there (note she cannot afford to contribute to me currently, buying me out is dependant on other external factors not related to this).


Would I also be legally entitled to reclaim a percentage of the stamp duty recently paid on the property? And would she be responsible for paying the early repayment charge on the mortgage as she is buying me out and instigated the split (appreciate this bit is irrelevant).


I want to make the process as painless as possible for all involved, especially as we have children together, but I also want to be able to move on and buy my own place to start again, and would just like a fair deal out of this painful process.


Thanks

Pixie5740

MrUnsure wrote: »

Hi,


Need some advice. Recently separated from my wife, having only purchased a new property together a few months ago. My ex wife will be in a position to buy out my share of the equity and bring the mortgage down to an affordable level.


Currently I pay the mortgage in full myself (despite not living there), and I have always paid the mortgage and most of the bills on previous properties while she has looked after child care expenses.


What I need to understand is, am I entitled to a greater share of the equity in the property on the basis that I have paid it in full, or would it basically be 50/50 split as agreed when purchasing the property?


I want to ensure that I am getting a fair deal, which as current payments go I am not getting, on the basis that I am paying the mortgage whilst not living there (note she cannot afford to contribute to me currently, buying me out is dependant on other external factors not related to this).


Would I also be legally entitled to reclaim a percentage of the stamp duty recently paid on the property? And would she be responsible for paying the early repayment charge on the mortgage as she is buying me out and instigated the split (appreciate this bit is irrelevant).


I want to make the process as painless as possible for all involved, especially as we have children together, but I also want to be able to move on and buy my own place to start again, and would just like a fair deal out of this painful process.


Thanks

You have children together so I assume you've been together a while. Long enough not to be considered a short marriage in a divorce court. To be honest I think you'll be lucky to get a 50/50 split, I take it there's no Deed of Trust in place, never mind any more and I highly doubt you'll see any of the SDLT back.

You say you have contributed more towards the mortgage because your wife was contributing towards child care expenses. I've seen nursery fees easily be equal to or more than mortgage payments.

Tom99

MrUnsure wrote: »

I want to make the process as painless as possible for all involved, especially......

'for me if not for my wife'

getmore4less

What I need to understand is, am I entitled to a greater share of the equity in the property on the basis that I have paid it in full, or would it basically be 50/50 split as agreed when purchasing the property?

If that was the agreement then that is the starting point.

Purchase costs are sunk and I would say not recoverable.

You have to think what would be the position if the place had sold and you were both getting a 50:50 share of what's left after costs.
That's the cash starting point, as the costs should be lower than full sale you can negotiate how you split those savings.

You could try to make a case that at some point the agreement(50:50 you pay for everything) moved to a new phase.

When you moved out might be that point and the ex became liable for the ongoing costs 100% and you are just loaning the money till she sorts out formally taking over.

As has been pointed out with kids you may not get 1/2 and even if you did it may be some time(kids grown up) before you would see all of it.

If you can come to some mutual mid ground you will probably both be better of that splitting what's left after a few solicitors have taken a cut.

jackieblack

Remember that the financial settlement will include all assets, including pensions as well as the property - the property split will not be an isolated transaction.

Ozzuk

If you've only had it a few months then you won't have paid much equity off as you'll be mostly paying interest. I'd question if its worth rocking the boat, stick at 50/50 - which is likely a good outcome for you, especially if kids involved.

AdrianC

MrUnsure wrote: »

Need some advice. Recently separated from my wife, having only purchased a new property together a few months ago.

Currently I pay the mortgage in full myself (despite not living there)

What I need to understand is, am I entitled to a greater share of the equity in the property on the basis that I have paid it in full, or would it basically be 50/50 split as agreed when purchasing the property?

Is the property really owned as explicitly 50/50 tenants in common or is it a joint tenancy?

I'm not sure it matters, anyway. The financial settlement of the divorce will sort out who walks away with that, regardless of how the house ownership is recorded. Either way, who chooses to pay what expenses is simply down to whatever agreement you make between you - you are both legally jointly and severally liable for the mortgage if it goes unpaid.

MrUnsure

Appreciate the responses, I will just aim for 50/50 split and be done with it, and then look to move on as painlessly as possible.

Fortunately we are on good speaking terms currently, though I do need to try and remove my negative emotions from the process better than I have up to now.

Thanks

jackieblack

If you are on reasonable terms and are able to agree the financial split between you, rather than forcing the court to decide (although the court will need to approve/seal the agreement to make it binding), it will save you a lot of money in terms of the final legal bill.