Cohabiting and separation

Midlandshouse

Hi MSE, I'm looking for some advice, or general point in the right direction.

I'm currently separating from my ex who I currently still live with  We applied for the mortgage for the house jointly, which I think we had to for loan amount, unfortunately this was a massive naive mistake on my part, as I believe this means (despite never paying towards the mortgage or any bills) my ex is now entitled to a 50/50 split of the equity... which he's pursuing. Whilst I'd love to contest it, I don't think it's worth the effort as our relationship and communication has completely broken down. However I wondered if the half of all mortgage payments not made could be deducted from his 'half', or whether it's a straight 50/50 split. I don't know whether this is a question for mediation, but I think we have to do this before a solicitor, which to be honest I'm confused about... I'm assuming we only have to go to mediation if we can't come up with our own agreement..? Very confused 

tigertrio

Has he helped to maintain the property? Could the labour cost of this be deducted from your half?

Midlandshouse

In the same way I could deduct my labour from his half I suppose? I don't know how this doesn't get contentious when it's not down solely to financial input. He cleaned and paid for some paint and flooring so there is labour, but how would I recoup mine? 

SDLT_Geek

Midlandshouse said:

Hi MSE, I'm looking for some advice, or general point in the right direction.

I'm currently separating from my ex who I currently still live with  We applied for the mortgage for the house jointly, which I think we had to for loan amount, unfortunately this was a massive naive mistake on my part, as I believe this means (despite never paying towards the mortgage or any bills) my ex is now entitled to a 50/50 split of the equity... which he's pursuing. Whilst I'd love to contest it, I don't think it's worth the effort as our relationship and communication has completely broken down. However I wondered if the half of all mortgage payments not made could be deducted from his 'half', or whether it's a straight 50/50 split. I don't know whether this is a question for mediation, but I think we have to do this before a solicitor, which to be honest I'm confused about... I'm assuming we only have to go to mediation if we can't come up with our own agreement..? Very confused 

There are two issues to look into:
(a)  What are the shares in which the property is held?  There might be a declaration of trust setting this out.  As you say, it might be 50/50.
(b)  Whether the principles of "equitable accounting" can be applied in this case.  If you do a search for "equitable accounting" you will find materials on this.

Midlandshouse

I stupidly allowed it to be sent up as joint tenancy, no common law or with any sort of cohabitation...can't remember the name of it. I'll Google the equitable accounting thank you

tacpot12

If you can agree a  settlement you are both  happy with you don't have to go to mediation, but if communications have broken down between you, you might find mediation useful.

You need his solicitor to make an offer in writing regarding how the proceeds of the sale are to be split. You can then accept this offer, and that should make it binding. (Your solicitor can confirm if this is correct). 

Your starting point at mediation is that as he didn't make any financial contribution to the mortgage, the equity in the house should be mostly yours, but you want to recognise the contributions he did make, as well as the risk he took in coming onto the mortgage. (Please appreciate that these are just words to appease him and demonstrate that you are a reasonable person to the mediator.)

You should make a list of all the ways you are aware that he contributed to the mortgage or the mainteance of the house, and do the same for yourself.

I would make a note of time spent, but don't share this immediately unless he wants to recognise the time spent on maintenance activities. I would suggest you use £25 - 50/hr as being an estimate of the cost of maintenance that each of you saved because the work was done as DIY and not by a paid contractor. I would not accept any difference in the value of your labour unless he is in the trade and handy. If he has made a mess of jobs he has attempted and devalued the property as a result, perhaps the rate should be £0! 
 
I think you should be aiming at a final settlement of something between 25%/75% and 50%/50%.

Midlandshouse

Thanks tacpot, I really appreciate the thought and time took, am I wrong to assume then that joint tenancy doesn't have to mean he gets 50% no contest?

CSI_Yorkshire

Midlandshouse said:

Thanks tacpot, I really appreciate the thought and time took, am I wrong to assume then that joint tenancy doesn't have to mean he gets 50% no contest?

There's no automatic right to 50% split of anything, that's just a starting point for sensible discussions.

silvercar

He will no doubt argue that without him you couldn't have obtained the mortgage you needed. 

There must have been some agreement on how costs would be split when you moved in. Did you put into a joint pot in proportion to your income? Or did you pay for certain items and him others? Who provided the deposit?

Midlandshouse

Nothing all me, his parents helped with the 5% deposit. I thought our understanding, again very niave of me, was that that this plus some of the suggestions above would be his only rights as I was paying everything else. What a fool I am

sheramber

What was the arrngement ofr the household bills?

Did he pay half the utility bills, food bills etc or did he pay them in full?