Divorce- Should we sell our house or sell my share for much less than its value?

AMartMan

Hello! This is my first post here. Really need some impartial advice. 

Me and my wife of 4 years are getting divorced, with the consent order about 10 weeks away.

Originally, I was very keen to leave the home so I agreed (verbally) to sell my share for £10,000 to her brother, because I wanted her to stay living in the home (and part of me still wants that.)

This idea was originally on the basis that it was done soon, but she's been advised since then to wait until the consent order phase (around June/July), although I've been told that you can do a buyout before then. 

Money isn't everything to me, I do want her to stay. However, it puts me at a bit of a disadvantage, even though I can go to live with my parents once it's all sorted. I feel like the court will agree. My share, if we sold, is worth more like £20,000. As time is going on, this has felt less and less fair to me, and I am aware that the judge can dismiss the buyout if it is seen as unfair. 

We're doing the divorce/consent order through Amicable rather than having separate solicitors. This means we roughly agree on everything. As time is going on, I do feel like I am being over-generous, and this might put a spanner in the works. 

I feel like this would be very straightforward if we just chose to sell the house, but this is something I really am worried about suggesting again. How could I convince her so without causing too much upset? 

What, in your opinions, seems the right path to take? Am I right to doubt the buyout as a fair agreement?

Thanks in advance. 

DE_612183

what is the value of the house?

why do your think your share is £10k or £20k?

Is there a mortgage involved?

Are you married?

Are there any children?

Some more info is required to give a view....

AMartMan

@DE_612183

Sorry I wasn't 100% specific.

The house is worth about 165-170k. We have a mortgage on it. 20K is about how much equity I have in the property when calculated. No children, but married. 

DE_612183

so £20k equity each? - realistically you should be looking at a 50/50 split.

The mortgage is approx 125-130 outstanding - I presume your ex is taking that on with her brother?

When calculating the equity you should also factor in the legal fees etc.

Of course you talk about the brother taking over and also selling - depends on what your ex prefers to do.

Without kids I don't see an issue here for you

AMartMan

@DE_612183

It should be 50/50 but her brother cannot afford more than that and my wife can't either. She's paying him back that 10k over the next few years.  But yes, the house would in theory be in their names.

She would rather keep the house, as I said, and dreads the thought of losing it understandably, but offering 10k less of what I should get realistically is surely a good reason to sell instead in fairness of the the eyes of the court?

lisyloo

If you sell you'll have estate agents fees, solicitors fees, possible removals and mortgage fees.

Do you have any other assets.
Do you both have pensions? is there any difference in those?
ISAs - cash, stocks & shares, premium bonds?

£10k to me seems small fry considering transactions fees on selling a house and considering court/solicitors costs as well.

Normally people have other assets. Have you forgotten about pensions?

AMartMan

@lisyloo

Only shared asset we have is the house. My pension is small (only part time wages) , but we're waiting on her CETV to come through on hers. 

So how much do transaction fees come to on average when selling a home? Even if I got 20k in a sale, what might I end up with after those come out of it? If it's not far off the 10k I'm being offered for a buyout then I guess we should push for that. 

lisyloo

If she has a defined benefit pension then this could be significant.
How many years has she been in that scheme?

It won't cost you £10K to sell the house, but it might cost  £3K - £4K (which of course you'd expect to split 50/50).

Do you work part time out of choice? (not judging but it might be significant).

AMartMan

@lisyloo

I think she's had it for about 8 years now, full time. 

So it's still a fair amount more that I'd get than 10k. Understood.

I do freelance work as well but it's not consistent whilst the stable job pays bills. 

gwynlas

Rather than mpney owed to you it is a question of  what is affordable to her. Can she and her brother afford/obtain a mortgage to buy you out?

AMartMan

gwynlas said:

Rather than mpney owed to you it is a question of  what is affordable to her. Can she and her brother afford/obtain a mortgage to buy you out?

yes they can luckily.