Buying home with my wife

pinkteapot

itwasntme001 said:

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?

What people are saying to you is that because you are married whatever agreement you have may not be used to determine the settlement in the event of divorce. 

It's not as straightforward as it is for non-married couples so you need professional legal advice to draw the agreement up (and understand exactly what is and isn't possible). Start by calling a family solicitor and asking them which type of solicitor can draw up this kind of agreement. Most solicitors will do a free 15 minutes on the phone to get a basic understanding of your situation and explain what they can do for you and what it will cost. 

Scotbot

itwasntme001 said:

Can people actually read the question first before replying??!!

I did. The answer as I stated at 10.57pm depends on how long you have been together . Initially a fixed amount is fair as time goes on a % becomes fairer as your wife will contribute more to the relationship   the longer you are married

longobongo_2

Your wife should consider divorcing you now, before you buy a house together.

EmmyLou30

It's all very well to say your wife agrees to follow any agreement even if that's less than she'd be entitled to in a divorce.....but if it doesn't end amicably then that's easily gone back on just so you know!

But to answer your question (if we ignore the fact it doesn't and won't work like that for the reasons everyone else has stated), then % is probably fairer. That way both your original 'investments' go up (assuming house prices don't fall) by an equal %. £10k now isn't the same as £10k in 10 years time, so growth by % is fairer. Ultimately 'fair' is what feels fair to you both though. 

saajan_12

itwasntme001 said:

I'll try again.

Forget about what happens in practice in courts etc in the case of divorce.  Forget what may happen and what can happen after having 10,000 kids and being married for 100 years.

All I am asking is what is a fair way to split up proceeds in my case if we have to sell the house?  Would it be based on % or fixed amount?  Please assume my wife is completely understanding and will follow whatever the declaration says, as will I.  What would be the fairest method for both of us?

The point is if you both agree WHEN everything breaks up, then you can just do that.. no declaration needed. If you don't agree, then that's when you need the piece of paper.. which will be overruled by the divorce proceedings. 

However the answer for 2 separate humans, to ensure everyone's contributions grow by the same return, can be the following. Say:
Wife: 5% deposit
Husband: 25% deposit
Mortgage: 70%, paid 50/50 each month

Then wife's share is 40% of the property value (5% deposit + she covers half the mortgage)
Husband's share is 60% of the property value (25% deposit + he covers half the mortgage)

Note these are shares of the property value, not the equity. You each pay off half the mortgage balance from your shares of the property value. 

Marvel1

itwasntme001 said:

I'll try again.

Forget about what happens in practice in courts etc in the case of divorce.  Forget what may happen and what can happen after having 10,000 kids and being married for 100 years.

All I am asking is what is a fair way to split up proceeds in my case if we have to sell the house?  Would it be based on % or fixed amount?  Please assume my wife is completely understanding and will follow whatever the declaration says, as will I.  What would be the fairest method for both of us?

50/50 is a fair way - you are married, otherwise why bother being together and get married?