Buying home with my wife

itwasntme001

Hello,

Just wanted to get some advice on the best way to draw up a deed/declaration of trust relating to a house purchase we will likely undertake in the next year or so.  We haven't found anything, still early stages but want to prepare certain things as much as possible in advance.  Hence my question on how best to draw up a deed of trust.  Since I will be putting the vast majority of the purchase proceeds (at a ratio of very roughly 5:1).  My wife is happy to draw something up and is understanding.  But we are confused on how best to draw this up exactly.  We will be taking out a mortgage and be paying it on a 50-50 basis.

Should the proceeds be distributed (in the case of separation and the house is sold) by calculating:

- on a % basis so that essentially our deposits grow in line with house price growth/falls

- on a fixed basis so that the difference between what i and wife puts in is paid back to me first and the remaining is split equally

Which method would be fairer and why?

Thanks!

Thrugelmir

As you are married. Everything is up for grabs should you separate and divorce. 

justworriedabit

OP

It all depends on when things go wrong in a marriage ie the years together, children/etc/etc and I mean genrally

I recall reading this and thought it was helpful but please - WARNING, read the link and DO YOUR OWN RESEARCH. Personally, for anyhting like that I would used  well established solicitors locally as it is a big step and may have massive implications if you got the wrong advice,


link below - feel free to read but you must do your own research and you decide.

https://www.elitelawsolicitors.co.uk/declaration-of-trust-for-property/

itwasntme001

Thanks for replies but please would anyone with some knowledge in this area be able to answer my question more directly?

McKneff

Speak to a family law  solicitor. 

cajef

I doubt that anyone except a legal expert has the knowledge to give you the correct answers you are seeking, as already advised consult a solicitor.

Tiglet2

Buy the house as Tenants in Common in unequal shares (80/20) with a Declaration of Trust stating the percentage of ownership.  In the event of a sale, the sales proceeds minus the mortgage can be split 80/20.

theartfullodger

Tiglet2 said:

Buy the house as Tenants in Common in unequal shares (80/20) with a Declaration of Trust stating the percentage of ownership.  In the event of a sale, the sales proceeds minus the mortgage can be split 80/20.

But wife (or anyone else, eg - no offence - mistress/toy-boy) could challenge on the basis of having a beneficial interest or having contributed more.  e.g. say in 10 years time wife gets very well paid job & inherits £780k, from then on paying all bills, mortgage etc & you stop working, I would expect any sensible judge to grant her a better share... see...

https://england.shelter.org.uk/legal/relationship_breakdown/marriedcivil_partners_joint_owner

AdrianC

itwasntme001 said:

Thanks for replies but please would anyone with some knowledge in this area be able to answer my question more directly?

While you're married: It's academic.
In the event of divorce: It's academic, the financial settlement will consider the entirety.
In the event of death: It may affect IHT, assuming your estates are large enough.

itwasntme001

Thanks for the replies.

Going back to my original question, does anyone with experience in this know what is the fairest approach in distributing the proceeds in the event of a separation, would it be based on a % basis or fixed?

Thrugelmir

itwasntme001 said:

Going back to my original question, does anyone with experience in this know what is the fairest approach in distributing the proceeds in the event of a separation, would it be based on a % basis or fixed?

There's no set formula. With no children to consider. The starting point will be 50/50 of total assets, i.e. property, pensions, cash, investments, classic car collection, wine cellar etc etc. Your to be ex will most likely use the services of a family law solicitor to ensure an equitable division.