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Splitting equity (not married, 1 child, financial input from various parties)

(8 Posts)
throwaway4815 Tue 04-Aug-15 14:13:32

Just split with my partner (i.e. not married) of around a decade, we have a child who is almost 18 months old. Estate Agents coming this week to value property and then get it on the market asap.

Our child will be moving with me full time. Various moneys have been put into our property, and into our life and the baby's generally (which has in turn helped us then put our own money into other things), by us and both of our sets of parents over the last couple of years. I am hoping there is a simple rule of thumb for how you split equity otherwise we may come into a mess because we have substantial and numerous financial input from our parents that have contributed to that equity (we have no paperwork relating to whether any of that should be split/repaid/held in any particular way) and i see no way to untangle them.

Examples of parental contributions include:
Lump sums for building works - e.g. this is X amount for you to do what you want with regards to an extension youve got planned
Named purchases - e.g. choose your carpets and let me pay
Lump sums for baby - e.g. here is X amount for you to get what you still need and for to hold in savings til you need other stuff
Named purchases for baby - e.g. choose your pushchair and car seat and let me pay
Random - e.g. parent had a bond mature and gave us and other siblings some cash which i used to pay off a buy now pay later agreement on the bathroom/kitchen

We have improved the property dramatically as we had intended to stay in it forever, so once the mortgage is cleared and a small loan and fees paid we will get a reasonable chunk of equity out and i see that as being split 50/50. Does this proposal sound right?

It is up to my partner to have a discussion with his parents as to whether he put all his 50% into his next property (he has said he would like another project property to do up and sell on as he's enjoyed the process and it will give him something to do) or whether he will offer them back some/all of the money they gave him. His parents contributed on the one large lump sum which was for building works basis explained above. I know the exact amount that would be.

I would use my 50% to pay as large a deposit as possible on a new house for me and our child as my part time salary means i will not get a very large mortgage. My parents do not want anything back from me. They contributed on the here and there, house, baby and random basis as explained above. I dont know the exact amount their contribution has added up to. Their contribution to our financial life is ongoing really as they do one day of free childcare a week whilst i work (with childminder another 2 days and i do not work the others)

I will obviously be looking to get a half hour free solicitor time but i want to be prepared as much as possible for that to get the best out of the time.

I appreciate that was long and cumbersome but i would really appreciate some experience or advice. We're still living together at the moment and that brings its own challenges but once the Agents start giving us house valuations then the money talk has to begin and i just want it split as clean and quick as possible before it dissolves into rows sad

meditrina Tue 04-Aug-15 14:17:59

As you are not married, then the start point is who owns it (ie who is on the deeds).

You may only get 50/50 if that is the share in which you both own it legally.

Those who put money in may be able to get it back, if they can prove (of all agree) what was put in.

throwaway4815 Tue 04-Aug-15 14:22:50

on the deeds, tenants in common etc

throwaway4815 Tue 04-Aug-15 14:26:24

I dont think anyone will be fighting in court to prove anything, was more a question of what to expect and what is common so we can start a conversation about it

PenelopePitstops Tue 04-Aug-15 14:28:24

It sounds like the money from both parents was of the gift kind, so they should just let you two sort it out. Dp can deal with his parents separate from the split.

If the house is both yours then 50:50 it should split.

SanityClause Tue 04-Aug-15 14:35:01

There is no such thing as a "free half hour" with a solicitor.

You may not be charged for an initial meeting, which is effectively a sales pitch. You will not be able to rely on any advice that you have not paid for, and prior to signing a client care letter, and paying a retainer.

throwaway4815 Tue 04-Aug-15 14:50:09

I assumed they would be after business and that you can't cover much in half an hour but I thought they'd be able to give some general terms and yes/no stuff in the half hour. It was CAB that recommended it shock

MaryMOORE Tue 04-Aug-15 19:43:47

The way you do it is you pay back the lenders/parents first, they with what's left you split 50/50.

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