Proceeds of house sale following separation.

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  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    Is there a Declaration of Trust in place detailing what will happen in the event of a split? Do you own the property as tenants in common with unequal shares? If the answer to both those questions is "no" then legally speaking it's a straight 50/50 split of the equity after the mortgage has been repaid.

    You and your ex are free to negotiate a different split between you though.
  • DUTR
    DUTR Posts: 12,958 Forumite
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    WillowCat wrote: »
    No, the OP calculated as a specific amount of deposit, not as a percentage. This is incorrect as the OP's partner had invested a significant deposit and should be expecting a return on that investment.

    There isn't just the deposit though, it's how the couple qualify for the mortgage.
    I don't know how it runs now, in my day it was 2.5*single income or 3.5 *dual income.
    The deposit was the same %.
    So even so, legal guidance may be required if they cannot come to a mutual agreement.
  • seymourf
    seymourf Posts: 27 Forumite
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    Thanks all for replies. I don’t want to just grab as much as I can get, she paid the deposit and fair’s fair - I just want to know what I might consider a reasonable settlement, and to be honest was niaively hoping for a straightforward answer. Is it worth paying for legal advice, or is that throwing money down a rabbit hole?
  • gettingtheresometime
    gettingtheresometime Posts: 6,911 Forumite
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    What %age of equity did the £32k buy?

    Work that out, then anything over that is split 50:50.
  • Tigsteroonie
    Tigsteroonie Posts: 24,954 Forumite
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    With nothing in writing, everything is open to negotiation.

    If you ask for 50% of (Equity less £32k deposit), you are benefiting from the investment of her deposit. But she might be happy with this.

    If you ask for 50% of (Equity less amount equivalent to current value of £32k deposit) then, presuming house prices have not gone down, you'll get less. It's the fairer answer.

    I'd ask for the former, but settle for the latter :D
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  • DUTR
    DUTR Posts: 12,958 Forumite
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    seymourf wrote: »
    Thanks all for replies. I don’t want to just grab as much as I can get, she paid the deposit and fair’s fair - I just want to know what I might consider a reasonable settlement, and to be honest was niaively hoping for a straightforward answer. Is it worth paying for legal advice, or is that throwing money down a rabbit hole?

    The straightforward answer is based upon individual cases.
    Your 1st thought is the most logical.
    If you can't resolve the amounts between yourselves then let the legal eagles settle it for you......for a fee which you both end up with less again.
  • Gavin83
    Gavin83 Posts: 8,754 Forumite
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    seymourf wrote: »
    Thanks all for replies. I don’t want to just grab as much as I can get, she paid the deposit and fair’s fair - I just want to know what I might consider a reasonable settlement, and to be honest was niaively hoping for a straightforward answer. Is it worth paying for legal advice, or is that throwing money down a rabbit hole?

    I'll ask my question again, what is she suggesting you're entitled to?
  • Ozzuk
    Ozzuk Posts: 1,884 Forumite
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    What about house improvements? Did you share the cost/effort?

    For instance, if one of you did the vast majority of the work improving the house then it could be fair to consider that. Not just in terms of cost but man hours.

    If that is you for instance, then ring fencing the deposit and splitting the rest 50/50 is easier to justify. If you didn't do much then factoring in percentage increase in deposit could be fairer.

    Ultimately its in both your interests to agree - going to court could cost a lot of money.
  • seymourf
    seymourf Posts: 27 Forumite
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    Gavin83 wrote: »
    I'll ask my question again, what is she suggesting you're entitled to?

    Sorry Gavin - she hasn’t been specific, but initially she made it clear she felt the house was her investment. She’s been in touch since and seems more reasonable - she says she’s getting advice and I’ll get what I’m ‘entitled to’. That is obviously open to interpretaction, hence this post.
  • davidwood681
    davidwood681 Posts: 881 Forumite
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    Because you're a man you won't get the same reply on here as a woman would.

    Either way, you're entitled to half of everything. How you feel about that is up to you though.
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