common law separation and dividing the house fairly

trevor1066

Hi
  Just after thoughts and opinions please
                                                               My partner and i are separating after a 15 year relationship, nothing significant has happened we just agree that we are at the end.
Our current home was purchased about 12 years ago with joint names on the mortgage and deeds at a cost of £150 000.

This was funded by me placing a deposit of £80 000 [funded by the sale of my previous house] and a joint mortgage for the balance. The current value is approx £270 000.

I wish to stay in the house and for us to come to a financial resolution where the house and mortgage is solely mine.

My ex partners opinion is that  we should take the current market value , minus my £80 000 deposit, minus outstanding mortgage [£50 000} leaving £140 000. Half of which should be due to her.

Is it fair for me to consider that my initial deposit was worth over 50% of the purchase price at the time and therefor should have grown in value along with the house and so now  be  more like £135 000?

gizmo111

If you are getting your £80K deposit, plus £70K equity that is £150K to you, which is £15K more that the £135K you are seeking?

Seems fair to me - if you have paid the mortgage equally etc.

tacpot12

It is fair that your £80k deposit is returned with the growth that has occured due to the rise in the value of the house. This is normally what happens when a deed of trust is created, but other arrangements are possible, so unless you have a deed of trust, you will need to negotiate. 

trevor1066

Thanks for your replies. gizmo 111 do you think the £80 k deposit is still only worth £80 k and has not grown in line with the property ? 

gettingtheresometime

gizmo111 said:

If you are getting your £80K deposit, plus £70K equity that is £150K to you, which is £15K more that the £135K you are seeking?

Seems fair to me - if you have paid the mortgage equally etc.

I think the OP is suggesting that the equity bought by their deposit was 53% before any mortgage repayments was made so I think the OP is suggesting that they have 53% of the current equity and then the remaining 43% is split equally (assuming mortgage payments were split 50:50) - so to my mind they're looking for £168K

To be honest, you could it either way - though I can see why you feel that the way I've described above is fair.

I take it you didn't have a declaration of trust drawn up ?

trevor1066

gettingtheresometime said:

gizmo111 said:

If you are getting your £80K deposit, plus £70K equity that is £150K to you, which is £15K more that the £135K you are seeking?

Seems fair to me - if you have paid the mortgage equally etc.

I think the OP is suggesting that the equity bought by their deposit was 53% before any mortgage repayments was made so I think the OP is suggesting that they have 53% of the current equity and then the remaining 43% is split equally (assuming mortgage payments were split 50:50) - so to my mind they're looking for £168K

To be honest, you could it either way - though I can see why you feel that the way I've described above is fair.

I take it you didn't have a declaration of trust drawn up ?

Sadly no but i have learnt from it and will make sure i do in the future

doodling

HI,

So she is proposing that she receives £70k.  You are proposing that she receives £42.5k.  You are asserting that your £80k bought you are specific proportion of the house rather than a fixed monetary value, I can see that argument but I'm not sure if I support it.

I think your bigger concern is to work out how you would refute an assertion that she is due £110k on the basis that a 50/50 split may well be the starting point in the absence of a clear agreement between you when the house was purchased, especially given the length of your relationship.  Doing that may well clarify in your mind what you both believed when the house was bought and give you an answer to your question.

sassyblue

I don’t think she’d go for that and nor would any lawyer should she instruct one.

Sadly, back then was the time to draw up an agreement as to who owned what portion in the event you separated.  I think what you’ve agreed is fair and it just looks like you’re splitting hairs to grab as much as possible.

Another thing to consider is if you’ve always gone 50/50 on everything whilst you lived together, if you have how can you argue you should deviate from that now?

Thrugelmir

trevor1066 said:

Is it fair for me to consider that my initial deposit was worth over 50% of the purchase price at the time and therefor should have grown in value along with the house and so now  be  more like £135 000?

Without your partners income you'd never have bought the property and made the gain. In the absence of a declaration of trust there's no legal basis on which to determine a split. Suggest you up your offer if you wish to reach a compromise. After all your ex has the expense of buying a new home and all the costs that go with it. You've got the easy hassle free option. 

TBagpuss

As I understand it, although you paid the deposit you don't have a declaration of trust setting out that you have a higher share of the property?

If that's the case, then if you can't reach an amicable agreement the most likely outcome would be a straight 50/50 split of the equity.

So you having £80K + 50% of the balance is probably better than you would get if things get nasty.

Also, just for information, there is no such thing as a common law marriage in UK law. You were cohabitees 

kirtondm

I think after 15 years their is a good argument for 50/50 split and that will be the legal default. 
If you're partner is happy to return the 80K I would settle for that.