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Splitting the house after separation

(20 Posts)
sweetcupcake78 Thu 21-Feb-19 14:39:01

We currently own our house outright. It is worth around £450,000 and we purchased it for around 305,000 4 years ago. I am trying understand the financial implications of separation and want to know how we could go about financing the split. a 2 bedroom house nearby is for sale for £215,000 would i be right in thinking we could use the equity from our current house to finance the second property, or is that a really bad idea? I believe husband would want to keep the current house.

I want to be really sure about financial things as he isn't a bad person, we have just grown apart etc.

OP’s posts: |
NotSuchASmugMarriedNow1 Thu 21-Feb-19 15:44:38

He could give you half the value of the house and you could purchase the other property you

What other assets are there

sweetcupcake78 Thu 21-Feb-19 15:59:31

I'm being dim here, but my point is, how does he physically give me half of the house? Is it by taking the equity from the property or what? Other assets would be belongings in the house, the car is leased so no asset there. We have one son of almost 17 if that makes a difference too. I'm just not wanting to fleece him and try and take anything more than is fair.

OP’s posts: |
crazygolfgonewrong Thu 21-Feb-19 16:03:18

What about pensions? That's usually the other big pot. Does one of you substantially out earn the other? If the house is truly all you're talking about it then he needs to come up with half the value. If the mortgage company will give him a mortgage for half the value (depends on his earning capacity/age etc) it can be done that way. He would release the equity and give it to you. Sadly the reality is more likely to be the house needs to be sold and you will split the proceeds.

Singlenotsingle Thu 21-Feb-19 16:04:59

He remortgages to borrow the cash for you to buy the 2 bed. If you're splitting 50/50 you'd ask for £225k and that would be the size of his mortgage. Can he afford the repayments on £225,000?

Parky04 Thu 21-Feb-19 16:08:34

If he keeps the house and you split 50/50 he will owe you £225000. He can't take it from the equity unless he sells the house. He will have to take out a mortgage for £225000.

NotSuchASmugMarriedNow1 Thu 21-Feb-19 16:14:08

Your son is likely to be 18 by the time it all goes through and won't be taken into account financially on the basis that both parents could house him and he can choose himself where he wants to live.

sweetcupcake78 Thu 21-Feb-19 20:40:05

Thanks for the response. Yes he does out earn me quite considerably, like double my salary and in part that’s due to on call allowances. He does have a large pension which he can start to draw on in around 7 years, I suppose in my mind I hoped the outcome would be to come away with enough to get a property that I was happy with and leave his pension with him as it’s me initiating the split, feels horrid to be taking too much.

OP’s posts: |
sweetcupcake78 Thu 21-Feb-19 20:41:26

I guess he probably could, but wouldn’t really leave a great deal for him to live on and I’d just feel so bad about that. ☹️

OP’s posts: |
RandomMess Thu 21-Feb-19 20:46:49

Him wanting to stay in the family house and home being able to afford it are two different things...

Selling it is the obvious solution.

MissedTheBoatAgain Fri 22-Feb-19 05:24:35

To OP

If your Ex wants to stay in the house he must buy you out. If he can't afford the resulting mortgage then the house will have to be sold.

Maybe he could secure a mortgage against his pension?

Decormad38 Fri 22-Feb-19 05:27:39

The readon you have not got as big a pension is probably because you were raising the kids so you should have a cut of his big pension. Don’t be a walk over op!

MissedTheBoatAgain Fri 22-Feb-19 05:32:22

The reason you have not got as big a pension is probably because you were raising the kids so you should have a cut of his big pension

Or more than 50% of the value of the house as compensation.

sweetcupcake78 Fri 22-Feb-19 14:17:44

I know what you’re saying is right and what I’m entitled to, I should take. But I suppose I’m feeling a lot of guilt, because it’s me who wants to end it and he has always worked so hard to provide things for us and a nice lifestyle etc, so I feel very bad for potentially making him work harder still to finance buying me out etc. Ugh such a mess ☹️

OP’s posts: |
RandomMess Fri 22-Feb-19 14:23:02

Don't let guilt influence a decision that will impact you and could mean you live in poverty.

It is pretty usual to downsize for your retirement!

lovemistymornings Sat 23-Feb-19 00:16:04

Generally the starting point is that you share 50/50 of all assets - that includes his pension. So you're entitled to half the value of the house, plus 50% share of his pension too. Yes, it's not great when you're the one leaving, but divorce is technically a no-guilt thing. Have you thought about where you are going to live, what you are going to buy? You might find it tricky getting a sizeable mortgage by yourself, so you are going to need your half share of the equity.

moviesgirl Mon 25-Feb-19 08:03:18

You have to take into account any mortgage you may have on the house. For example, if your mortgage is say £290,000 then you have 450k - 290k = 160k if you were to actually sell the house you'd also have fees to pay and you might not even get 450k

Stabbitha Mon 04-Mar-19 15:48:36

The house is owned outright, it's the very first line in the OP.

trendingorange Fri 08-Mar-19 13:25:15

Would you feel guilty and not take away from the marriage your fair share if your dh re-married within a year, or moved another woman into your family home as soon as you moved out? Or you later discovered he had been having affairs the whole time you were married.
Guilt and financial security are two different things.
You could easily end up in poverty at some point if you don't take your fair share.

trendingorange Fri 08-Mar-19 13:26:09

If nothing else you could give the 'extra' money to your son to help with university or a deposit for his first home.

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