Proceeds of house sale following separation.

Options
seymourf
seymourf Posts: 27 Forumite
in Marriage, relationships & families
My ex-partner and I recently separated whilst in the process of selling our house. She paid a deposit of £32k in 2008, and we have paid half each towards the mortgage and other household bills ever since (these were all in her name apart from the mortgage, which was in both, but I transferred my half to her account every month). Following the sale and deduction of costs, approx £91k will be left. Am I correct thinking that our respective shares should be calculated by first deducting the deposit of 32k - which obviously belongs to my ex-partner - then dividing the remainder equally? So that in this instance my proceeds would be 91-32=59; then 59/2=£29,500?
Not a nice question, but I need to know. Informed advice re the financial question much appreciated.
«13

Comments

  • onlyroz
    onlyroz Posts: 17,661 Forumite
    First Post Combo Breaker First Anniversary
    Options
    Were you married? Any kids? Has your ex expressed an opinion on the financial split?
  • seymourf
    seymourf Posts: 27 Forumite
    Options
    Hi. We’ve no children, and we’re not married although we lived together for 13 years. She says I’m not entitled to any significant share as the deposit was hers. Thanks for replying...
  • hazyjo
    hazyjo Posts: 15,470 Forumite
    First Anniversary Name Dropper First Post Photogenic
    Options
    It's what me and my ex husband did - I thought it was very fair of me.

    Others will say she held a larger interest in the house and should therefore take a bigger cut. I think I was more than decent in giving my ex half the profit as I'd put in over a hundred grand more - although the profit was less than yours.
    2023 wins: *must start comping again!*
  • Tom99
    Tom99 Posts: 5,371 Forumite
    First Post First Anniversary
    Options
    You ex also needs the house price growth on her £32k so if you are selling for 50% more than the cost in 2008 she gets the 1st £48k then you split 50/50.
  • Gavin83
    Gavin83 Posts: 8,751 Forumite
    Name Dropper First Post First Anniversary
    Options
    seymourf wrote: »
    Hi. We’ve no children, and we’re not married although we lived together for 13 years. She says I’m not entitled to any significant share as the deposit was hers. Thanks for replying...

    When she says 'not a significant share' what is she suggesting you're entitled to?
  • DUTR
    DUTR Posts: 12,958 Forumite
    First Anniversary Name Dropper First Post
    Options
    seymourf wrote: »
    My ex-partner and I recently separated whilst in the process of selling our house. She paid a deposit of £32k in 2008, and we have paid half each towards the mortgage and other household bills ever since (these were all in her name apart from the mortgage, which was in both, but I transferred my half to her account every month). Following the sale and deduction of costs, approx £91k will be left. Am I correct thinking that our respective shares should be calculated by first deducting the deposit of 32k - which obviously belongs to my ex-partner - then dividing the remainder equally? So that in this instance my proceeds would be 91-32=59; then 59/2=£29,500?
    Not a nice question, but I need to know. Informed advice re the financial question much appreciated.

    Not should be, just could be, due to the length of time, then a 50/50 split of the equity seems reasonable too.
    Hopefully, you both can come to a swift agreement without having to go through a legal fight.
  • Marvel1
    Marvel1 Posts: 7,172 Forumite
    Name Dropper First Post First Anniversary
    Options
    Tom99 wrote: »
    You ex also needs the house price growth on her £32k so if you are selling for 50% more than the cost in 2008 she gets the 1st £48k then you split 50/50.

    Curious how it would work if sold for less (yes it is possible, my area for example has not recovered to sell for more but less).
  • Auntie-Dolly
    Auntie-Dolly Posts: 1,008 Forumite
    Options
    Calculate the £32k as a % of the purchase price. She should get that % of the equity back, then 50% of the remainder.
  • DUTR
    DUTR Posts: 12,958 Forumite
    First Anniversary Name Dropper First Post
    Options
    Auntie-Dolly wrote: »
    Calculate the £32k as a % of the purchase price. She should get that % of the equity back, then 50% of the remainder.

    That's what the OP had already shown in the opening post.
    However if foe example his higher salary (assumed) lead to obtaining the mortgage then that could sway the calculation.
  • WillowCat
    WillowCat Posts: 974 Forumite
    First Post First Anniversary
    Options
    DUTR wrote: »
    That's what the OP had already shown in the opening post.
    However if foe example his higher salary (assumed) lead to obtaining the mortgage then that could sway the calculation.

    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.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards