Home buyout in divorce.

CarrotCake111

My wife has asked for a divorce.  We verbally agreed that I would buy her out of our house (which has no mortgage), and she has recently moved out into a flat which she’s renting for 6 months.

She has now turned nasty and is saying that a 50/50 split of our matrimonial assets is no longer good enough for her.  She wants “a £20k bonus in top to let me stay in our house.”  I have refused and offered a pure 50/50 split.  To which she has responded by saying she will refuse to agree to any financial settlement and make the court force the house to be sold.

I responded by saying legal advice provided to me is that the court will not order a sale given I have the means to buy her out.  She has now said she too has the means to buy me out of the house.

So I have two questions;
1) can the court force both of us to sell and split the proceeds?
2) if both of us can afford to buy the other out, how would it be decided who buys who out?  Do I have any advantage in that regard given she has moved out and signed up to a flat until April?

Markneath

Make sure you get a good divorce solicitor to represent you and only buy her out as part of a final settlement agreement , do you have any children together under the age of 18? 

All assets will be counted not just the house, speaking from experience don’t even try and negotiate with her directly its a waste of time.

CarrotCake111

We have no children.  There is no debt in the marriage.  We have an unmortgaged house, cash balance in the bank, and our respective pension pots.  These sum to £416k, and I have offered her £141k cash which when added to her £67k pension valuation, gives her precisely 50% of the total value of the matrimonial assets.  She wants another £20k on top of this for “letting me stay in the house.”

Sky_

I'd argue that whoever leaves, should get slightly more of the marital assets than the one who stays in the house, regardless of who that is.

The 'mover' will need to fund legal fees etc to buy a new property, plus will presumably need to furnish it and spend money for other incidentals involved in buying and moving into a new house--that unexpected bathroom leak for example, that the vendors failed to mention.

It could be difficult if you both love the current house and each want it for yourselves.

AskAsk

i am no expert on how the court decides, but if you can not agree between you who gets to buy the other out, then the court may force the process through a sale and you both have the chance to bid for it??

i am not sure the court would favour the person who has stayed in the house if there is no children as is the case here.  it would be different if there were children involved and they had stayed at the house with their mum.

here is some info

https://www.diemlegal.co.uk/court-order-force-sale-joint-property/

pphillips

1. Yes, the court certainly has discretion to make an order for sale.
2. I think where you can both afford to purchase the matrimonial home, the court will decide who has need of it the most by taking into account the factors listed in section 25(2) of the Matrimonial Causes Act 1973.
Having said that, financial remedies are usually negotiated between the parties and rarely go a final hearing.

Markneath

From what you say it would probably be a 50/50 scenario, they don’t usually factor in stamp duty or other buying costs for the person who gets bought out. Call her bluff tell her she can buy you out at 50% value plus 20k.

TBagpuss

A court could order the sale of the house and the splitting of the proceeds if you can't agree. I agree with Markneath - offer her the same deal - she can buy you out for 50% plus £20K. If she says no, then continue with the original deal, if she says yes, then move on and buy a nicer new house with the extra money  

gettingtheresometime

Being abit of a devil's advocate but is there any specific reason why you want to stay in the house? I can't help but think that she has made the offer so that effectively she gets £20K more.
Of course you could always calculate the cost of selling the house (estate agents fees etc) and counter offer her that?

BAFE

I honestly think 50/50 of the assets plus £20k is quite reasonable for the inconvenience of having to move twice (once into rented then again into purchased) plus all the associated costs that go with it, and having to purchase new flooring lighting and curtains etc etc.

My own divorce was 50/50 plus £16k to my ex husband for exactly that reason.  That was 8 years ago.

sassyblue

I think a 50/50 split is fair considering but the good news is you are just £20,000 apart in negotiations.
you could offer to meet her half way and let her have £10k extra in the hope that settles it, depends what is happening re: furniture in the house too - she’s going to have estate agents and Solicitor's fees but what furniture does she need to buy?

she will then have to decide if she wants to pay a solicitor up to £15k to take you to court just to gain another £10k.

ignore threats about her taking you to court too, the chances are this will be resolved between you both or solicitors. 

I do like the offer TBagpuss put forward....