Property Purchasing Below Market Value from Parents, they want a divorce agreement.

17 Posts

Hi,
I am looking for advise on a never nice situation, but my wife and myself are purchasing a property from my parents for BMV. They would like an agreement to say that if we split up then my wife will only be entitled to 50% of the value that we purchased it for, or the difference to Market Value is excluded from this. I can understand this as it is quite a large sum. Is this type of agreement normal, is it possible?, what is the best way to address this, for example solicitors? or will personally signed agreement letters suffice? Is it also fair to say that its only the sum of money should only be based on difference at the point of purchase, and not a fixed amount, as property value goes up as we know.
Its not a nice conversation to have as already there is uncomfortableness between the in laws and my partner and I fear this will cause more friction but I can understand how they are wanting to protect their interests and myself. Any advice would be most appreciated. Thank you.
I am looking for advise on a never nice situation, but my wife and myself are purchasing a property from my parents for BMV. They would like an agreement to say that if we split up then my wife will only be entitled to 50% of the value that we purchased it for, or the difference to Market Value is excluded from this. I can understand this as it is quite a large sum. Is this type of agreement normal, is it possible?, what is the best way to address this, for example solicitors? or will personally signed agreement letters suffice? Is it also fair to say that its only the sum of money should only be based on difference at the point of purchase, and not a fixed amount, as property value goes up as we know.
Its not a nice conversation to have as already there is uncomfortableness between the in laws and my partner and I fear this will cause more friction but I can understand how they are wanting to protect their interests and myself. Any advice would be most appreciated. Thank you.
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You have two options, refuse their gift or go with an unequal ownership, you both benefit from living in a house you would otherwise have been unable to afford.
These things are not uncommon and can simply be structured legally. If you did divorce in the future your assets and your wife's assets would be joint assets for the purposes of a financial settlement.
What does your wife think? and are your parents likely to constantly remind you that they gave you a substantial gift?
We got a £5k gift from my FIL in 2006 and were reminded of it constantly to the point that we seriously considered paying it back.
your thoughts and time to respond to me