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After separation/divorce - Staying in house (FMH) until kids reach a certain age

(8 Posts)
pinkpeter Wed 07-Feb-18 22:18:59

If you negotiated staying in your home until the kids reach a certain age, after separation or divorce, how does it work?
Do you take over all payments for bills, including insurance etc?

Is a percentage or amount of the value of the equity agreed at the time of the split or at the time of sale?
I mean, if a 60/40 split is agreed, is it at the value the house has at the time of split and then if it goes up in value the percentages stay the same?

Has anyone any experience of this? How does it work please?

millymollymoomoo Thu 08-Feb-18 07:30:56

You would need a meaner order to do this. For my sister she was awarded a 65% split, the 35% to her ex was based at time of sale or trigger( ie when children were 18 or remarriage whichever came first) and she had to take over all mortgage bills etc. Don’t know if that is the same for everyone so you’ll need legal advice

Although think about what happens if house prices rise, the value to ex may become large firvyiu to raise without selling, what age will you be when the children are grown, will you be able to get mortgage then etc etc

MrsBertBibby Thu 08-Feb-18 08:16:45

I usuzlly draft it so the percentage is of value at the time of pay out, less mortgage as at the date of separation, do that the person in the house and paying the mortgage gets the benefit of reduction in the mortgage.

You should also make provision for any major repairs that may arise, and how they are paid for (roof repairs, not recorating). Fair for a percentage of the cost to come out of the non player's ultimate share.

Usually the one in the house pays all bills, although insurance could reasonably be shared.

pinkpeter Thu 08-Feb-18 13:20:24

Thanks MrsBertBibby, you mean that, for example,

If a house is worth £100k, at the time on separation/divorce and it is a 60/40 split, then the one who leaves in entitled to £40k when the house eventually is sold, at a trigger. If in 10 years and the house is worth £200k, the leaver is still entitled to only £40k and not £80k?

MrsBertBibby Thu 08-Feb-18 16:01:03

No. Assume a W60:H40 split.

At date of agreement house worth 200K, mortgage 100K. H's share at date of agreement is worth 40K. W's is 60K

At trigger date in 10 years if house is now worth 350K and mortgage down to 50K the H gets 40% of 350K-100K, ie 100K. W gets 200K.

If the house value fell to 150K and the mortgage was 50K H would get 20K W would get 80K.

If the W didn't pay the mortgage so it went up to 150K whilst house value remained 200K H would get 40K and W would get 10K.

pinkpeter Thu 08-Feb-18 20:40:17

Thank you, very clear. I appreciate your time to explain it as I'm not very good at these things. And tonight we have finally agreed to separate .

MrsBertBibby Thu 08-Feb-18 22:18:29

Ooh big step! Well done.

Good luck, please get a solicitor to look over any agreement before committing yourself!

pinkpeter Thu 08-Feb-18 22:19:24

Will do, thank you

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