How do I work out living costs with partner?

getmore4less

 Without knowing the content of the deed it is not known if the ownership is OK.

If it makes it clear that those shares are the property before debt is taken off which is taken out of the shares  then it works OK.

CSL0183

Grumpy_chap said:

CSL0183 said:

Cash injection for improvements of £25k
If the renovations were done and the couple were to split the next day

You are not giving any consideration or value to the time and skills of the OP's partner:

finchy_2020 said:

any work that needs doing to the house which can be done by my partner (painting, sanding the floorboards, putting up shelves mirrors etc...) he is happy to do

Whether the split is fair or not, it is too late to decide as the two of them have already determined 60 / 40 prior to purchase.  Change of mind straight after purchase and one half of the couple wanting 100% of the equity is irrelevant, unless the other shows generosity.

I would also suggest, given the way this thread has developed, it is likely hypothetical to talk about the value (either the OP's £25k or the OP's partner's skill and time) of the renovations as it seems highly unlikely that the arrangement will remain in place for long enough that this work is ever done by this couple.

The valuation of any split should really also take into account the tax bill associated with the OP's partner falsely declaring income to secure a bigger mortgage.  The best the OP and the OP's partner can really hope is to get out of this is without the fraud being uncovered and the long-term damage that will inflict on both their financial futures - likely greater than the way the £55k deposit is split.  It is a moot point as to whether they should get away with fraud, but that is the best possible outcome for the two of them.

I don’t really understand why the owners labour time would give any credit towards the equity in the house?

That’s just classed as upkeep and maintenance surely and no financial reward for upkeep should ever be considered ? More often than not (in a non sexist way) it’s usually the woman that will maintain a home, cleaning, hoovering and making a house a home. Again, more often than not (again in a non sexist way) the male would do the odd manual jobs around the house that need doing. Decorating wise, you would expect both to lend a hand, whether that’s painting a room or stripping the wallpaper. Why should any maintenance be credited to either party? That’s almost like saying well I have loaded the dishwasher 1500 times over the years and the other only done it 200 times. Is someone to be rewarded for doing more tasks than the other? That’s ridiculous and I’m surprised it’s even a thought? 

Protect your £55k. 

Protect the £25k (As that £25k redevelopment will probably add £25k to the value of the house) 

Then go 50/50 on the remainder. The 60/40 thing is crazy as why should the non contributing owner get 40% of the £55k deposit or the £25k development fund? 

Anyway, it’s points to consider. 

HampshireH

CSL0183 said:

Grumpy_chap said:

CSL0183 said:

Cash injection for improvements of £25k
If the renovations were done and the couple were to split the next day

You are not giving any consideration or value to the time and skills of the OP's partner:

finchy_2020 said:

any work that needs doing to the house which can be done by my partner (painting, sanding the floorboards, putting up shelves mirrors etc...) he is happy to do

Whether the split is fair or not, it is too late to decide as the two of them have already determined 60 / 40 prior to purchase.  Change of mind straight after purchase and one half of the couple wanting 100% of the equity is irrelevant, unless the other shows generosity.

I would also suggest, given the way this thread has developed, it is likely hypothetical to talk about the value (either the OP's £25k or the OP's partner's skill and time) of the renovations as it seems highly unlikely that the arrangement will remain in place for long enough that this work is ever done by this couple.

The valuation of any split should really also take into account the tax bill associated with the OP's partner falsely declaring income to secure a bigger mortgage.  The best the OP and the OP's partner can really hope is to get out of this is without the fraud being uncovered and the long-term damage that will inflict on both their financial futures - likely greater than the way the £55k deposit is split.  It is a moot point as to whether they should get away with fraud, but that is the best possible outcome for the two of them.

I don’t really understand why the owners labour time would give any credit towards the equity in the house?

That’s just classed as upkeep and maintenance surely and no financial reward for upkeep should ever be considered ? More often than not (in a non sexist way) it’s usually the woman that will maintain a home, cleaning, hoovering and making a house a home. Again, more often than not (again in a non sexist way) the male would do the odd manual jobs around the house that need doing. Decorating wise, you would expect both to lend a hand, whether that’s painting a room or stripping the wallpaper. Why should any maintenance be credited to either party? That’s almost like saying well I have loaded the dishwasher 1500 times over the years and the other only done it 200 times. Is someone to be rewarded for doing more tasks than the other? That’s ridiculous and I’m surprised it’s even a thought? 

Protect your £55k. 

Protect the £25k (As that £25k redevelopment will probably add £25k to the value of the house) 

Then go 50/50 on the remainder. The 60/40 thing is crazy as why should the non contributing owner get 40% of the £55k deposit or the £25k development fund? 

Anyway, it’s points to consider. 

But they have already gone 60/40 so as crazy as it may be, the OP has already agreed to it.

AlexMac

finchy_2020 said:

....how do we find a common ground to split the house so it’s fair on both parties? ...

My and my partner's property and financial circumstances were far more complex and precarious... (consolidating down from 3 differently valued properties, CGT, my redundancy and being skint for a few years, her kids and grandchildren by a previous husband, what to do about wills, etc...), so we found an easy solution...

We just got married after 10-15 years of complicated co-habitation...  still together 20 years on (anniversary this month), and much more prosperous than before. Everything jointly & equally owned despite the inevitable original capital and salary differentials

Not for everyone (?) but worked for us!