Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • mric2000
    • By mric2000 7th Aug 18, 10:02 AM
    • 22Posts
    • 16Thanks
    mric2000
    Joint mortgage. Not married, Separating. Ex claiming half. Advice please.
    • #1
    • 7th Aug 18, 10:02 AM
    Joint mortgage. Not married, Separating. Ex claiming half. Advice please. 7th Aug 18 at 10:02 AM
    Hi,
    I'd appreciate any advice anyone can offer on this situation so I know where I stand, before arranging to discuss further with a solicitor, if required.

    I am separating from my girlfriend and we are have a joint mortgage, which is the area of contention. I paid the 25% deposit and have paid approximately 80% of all domestic bills (inc. mortgage) for the 5 years that we have lived here. The house value has risen approximately 25% in that time.

    My ex is suggesting that Family Law advisors and Benefits advisors, as well as friends tell her she should be pushing for half of the house, when sold. We had unofficially got to a verbal agreement that she would have half of the remaining equity after the mortgage and selling costs had been paid off, along with me getting my full deposit (+25%) back in addition to all the costs I covered for the purchase (solicitors, mortgage fees etc).
    She has now back peddled and is saying she thinks she should be getting half of the house, once all mortgage and selling fees are taken out - including the deposit.

    Her situation is driven primarily by the fact that her work is part-time and doesn't pay her a great deal, so she would be dependent on benefits support. She believes that the various benefits departments would refuse her any support if she didn't get half the complete house sale, as she is on the mortgage she is a joint owner, so in their eyes she has equity.
    We can't take her off the mortgage as that would by all accounts reflect badly on her financial situation and they would see that she voluntarily accepted to take less than she was due, so would deny any benefit support.

    My suggestion is that we come to an agreement where she would have half (or almost half TBC) of the proceeds after deductions (outlined above) and the benefits department have no argument to say she MUST have half the house.

    Can anyone advise on this?
    What is she entitled to?
    Is there a strong enough case for me to make sure my deposit and additional costs all come back to me?
    Are the benefits departments likely to accept that we had an agreed settlement and it won't affect her standing that she didn't take half the house?

    All and any advice is very gratefully received.
    Thanks in advance!
Page 1
    • mrginge
    • By mrginge 7th Aug 18, 10:33 AM
    • 4,672 Posts
    • 8,865 Thanks
    mrginge
    • #2
    • 7th Aug 18, 10:33 AM
    • #2
    • 7th Aug 18, 10:33 AM
    How much did you pay for the house?
    • Pixie5740
    • By Pixie5740 7th Aug 18, 10:39 AM
    • 13,135 Posts
    • 18,907 Thanks
    Pixie5740
    • #3
    • 7th Aug 18, 10:39 AM
    • #3
    • 7th Aug 18, 10:39 AM
    In the absence of a Declaration of Trust setting out what will happen in the event of a relationship breakdown then legally, as a joint owner, she is entitled to half the equity.
    • mric2000
    • By mric2000 7th Aug 18, 10:40 AM
    • 22 Posts
    • 16 Thanks
    mric2000
    • #4
    • 7th Aug 18, 10:40 AM
    • #4
    • 7th Aug 18, 10:40 AM
    Purchase price 240k
    Expected Sale price 300k
    Deposit from me 60k
    Monthly payments (inc bills) 800 from me, 200 from ex. Although these payments have changed slightly over time.initially we were splitting all costs and during the 5 years we had a baby, so I wouldn't have expected her to be paying through the pregnancy and maternity leave.
    • mric2000
    • By mric2000 7th Aug 18, 10:45 AM
    • 22 Posts
    • 16 Thanks
    mric2000
    • #5
    • 7th Aug 18, 10:45 AM
    • #5
    • 7th Aug 18, 10:45 AM
    Including the deposit??

    Purchase price 240k
    Expected Sale price 300k
    Deposit from me 60k
    Monthly payments (inc bills) 800 from me, 200 from ex. Although these payments have changed slightly over time.initially we were splitting all costs and during the 5 years we had a baby, so I wouldn't have expected her to be paying through the pregnancy and maternity leave.
    Originally posted by mric2000
    • Pixie5740
    • By Pixie5740 7th Aug 18, 10:46 AM
    • 13,135 Posts
    • 18,907 Thanks
    Pixie5740
    • #6
    • 7th Aug 18, 10:46 AM
    • #6
    • 7th Aug 18, 10:46 AM
    Including the deposit??
    Originally posted by mric2000
    Yes including the deposit. If you wanted to protect it then you should have had a Declaration of Trust drawn up. Half is what she is legally entitled to anything lower that you manage to negotiate is a bonus.
    • mrginge
    • By mrginge 7th Aug 18, 10:50 AM
    • 4,672 Posts
    • 8,865 Thanks
    mrginge
    • #7
    • 7th Aug 18, 10:50 AM
    • #7
    • 7th Aug 18, 10:50 AM
    Purchase price 240k
    Expected Sale price 300k
    Deposit from me 60k
    Monthly payments (inc bills) 800 from me, 200 from ex. Although these payments have changed slightly over time.initially we were splitting all costs and during the 5 years we had a baby, so I wouldn't have expected her to be paying through the pregnancy and maternity leave.
    Originally posted by mric2000
    Forget the bills.

    I agree with pixie. You need to be able to prove the intention was that your 25% deposit was Ďyoursí.
    Unless youíve got a DoT in place itís going to be pretty difficult to argue that.
    • getmore4less
    • By getmore4less 7th Aug 18, 11:03 AM
    • 33,267 Posts
    • 20,089 Thanks
    getmore4less
    • #8
    • 7th Aug 18, 11:03 AM
    • #8
    • 7th Aug 18, 11:03 AM
    The get your money back(rather than your deposit buys equity) is the same as an interest free loan for 1/2 the amount.

    Hold your ground on that if that was what was agreed at the start.
    • sparkey1
    • By sparkey1 7th Aug 18, 11:04 AM
    • 439 Posts
    • 193 Thanks
    sparkey1
    • #9
    • 7th Aug 18, 11:04 AM
    • #9
    • 7th Aug 18, 11:04 AM
    Would suggest that once you sell, from the profit, you both take out the amounts of the deposit you paid in, and then split the profit.

    The 25% gain, needs to be shared it will seem fairer. You didnt put the deposit in, on an expectation of taking the 25%. If the house had dropped in value, you would want the deposit back in full I suspect.... who wouldn't.
    Last edited by sparkey1; 07-08-2018 at 11:07 AM.
    • TrickyDicky101
    • By TrickyDicky101 7th Aug 18, 11:09 AM
    • 3,165 Posts
    • 2,083 Thanks
    TrickyDicky101
    Who will be the parent with care following your separation? If it isn't you then I think you'll be lucky getting 50%. Kids are expensive to raise.
    • mrginge
    • By mrginge 7th Aug 18, 11:21 AM
    • 4,672 Posts
    • 8,865 Thanks
    mrginge
    Who will be the parent with care following your separation? If it isn't you then I think you'll be lucky getting 50%. Kids are expensive to raise.
    Originally posted by TrickyDicky101
    I am assuming that the partner has put a lot more into the raising of this child so far, both in terms of actually being pregnant and through maternity leave.

    On some of the logic In this thread it therefore seems Ďfairí that the partner gets more custody rights going forward than the OP does.

    Iím not sure that that would be fair though and I guess the OP would agree.
    Swap child for house and pregnancy/maternity for deposit though and suddenly itís a different story....
    • Grezz24
    • By Grezz24 7th Aug 18, 12:18 PM
    • 179 Posts
    • 210 Thanks
    Grezz24
    surely splitting it 50/50 is the best thing to do, as your child will be with the mother, so she will have money to help raise said child?
    • mric2000
    • By mric2000 7th Aug 18, 12:28 PM
    • 22 Posts
    • 16 Thanks
    mric2000
    We will be splitting responsibility and time with our daughter 50:50 (this has been agreed) and everything has been 50:50 so far.
    I gave up my previous job when she arrived and am pursuing self employment so I can plan my life around her needs.
    • Mnd
    • By Mnd 7th Aug 18, 4:59 PM
    • 743 Posts
    • 905 Thanks
    Mnd
    How much mortgage is outstanding, then if you sell for 300k minus the outstanding mortgage at least you will know how much cash is involved. I'm struggling to see how she is going to raise 60k to pay you.
    (Sorry if I'm being a bit dim here)
    • getmore4less
    • By getmore4less 7th Aug 18, 6:04 PM
    • 33,267 Posts
    • 20,089 Thanks
    getmore4less
    The simple scenario is 60k was put up front 30k each(interest free loan to OH).

    They lived in the place and shared costs according to means and obligations.

    Split the net equity 50:50 and OH pays back the 30k from that share.
    • Thrugelmir
    • By Thrugelmir 7th Aug 18, 6:33 PM
    • 60,096 Posts
    • 53,437 Thanks
    Thrugelmir
    Is there a strong enough case for me to make sure my deposit and additional costs all come back to me?
    Originally posted by mric2000
    If you take the matter to Court. The Court assumes guardianship of the interests of any children. While you have grounds to argue for the deposit you contributed at the outset. The Court will take into account provision for the children, i.e. a home. Otherwise the base point will be a 50/50 split of equity.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Tigsteroonie
    • By Tigsteroonie 7th Aug 18, 6:42 PM
    • 22,911 Posts
    • 57,494 Thanks
    Tigsteroonie
    She believes that the various benefits departments would refuse her any support if she didn't get half the complete house sale, as she is on the mortgage she is a joint owner, so in their eyes she has equity.

    <snip>

    Are the benefits departments likely to accept that we had an agreed settlement and it won't affect her standing that she didn't take half the house?
    Originally posted by mric2000
    How would the "benefits departments" find out that she didn't get half of the full equity, unless she goes to see them with various pieces of paper and calculations? Personally, I don't think the "benefits departments" will be bothered.

    My experience was that I told the DWP & Council that although I had a share in a house, our marriage had broken down, I could no longer live there, and the house was on the market. My share of the equity (I didn't need to provide figures) was disregarded for six months to allow for settlement.
    Mrs Marleyboy

    MSE: many of the benefits of a helpful family, without disadvantages like having to compete for the tv remote

    Proud Parents to an Au-some son
    • Mnd
    • By Mnd 7th Aug 18, 8:58 PM
    • 743 Posts
    • 905 Thanks
    Mnd
    When we bought our house and moved in together, our deposit was £65k.

    Due to circumstances before we got together I put up 50k my partner 15k

    If we split up after 5 years I wouldn't have expected a refund of that difference,
    • Ginalina
    • By Ginalina 8th Aug 18, 10:39 AM
    • 6 Posts
    • 0 Thanks
    Ginalina
    Housing usually remains with the person on whom the loan was registered. However, this does not mean that the other does not have any rights: confirmation that payments were made for general funds, provides the right to share in the property in proportion to the joint payments made. It is very difficult to prove this in practice, so you should save receipts, account statements, checks, etc. in advance.
    • mric2000
    • By mric2000 9th Aug 18, 10:06 AM
    • 22 Posts
    • 16 Thanks
    mric2000
    Thank you all.
    Looks like we have more talking to do...
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

324Posts Today

5,061Users online

Martin's Twitter
  • RT @GillsSarah: Interesting! I always used to buy big name products cos I thought they?d be stronger. @MartinSLewis has changed my mind on?

  • RT @think_jessica: Think Jessica the Film 30 min doc/drama based on my mother?s true story. Narrated by @MartinSLewis is now live on https:?

  • RT @kelsher123: @MartinSLewis First time switcher! And no, it wasn?t as challenging as I thought???? A British Gas customer so no brainier. Th?

  • Follow Martin