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Splitting money minus family gift

(46 Posts)
PiperAndLarry Sat 28-Oct-17 14:10:31

Please help me work this out - I'm getting so mixed up with the maths and H is bamboozling me. Obviously I will let a solicitor deal with this properly, but in the meantime I'd like to get it straight in my head.

His parents gave him a cash gift a while ago, which we used to overpay the mortgage. We're now having initial discussions aboout splitting assets: regards to the house, I've suggested a 50:50 split minus the money from his parents, which I don't want.

Here's how I've worked it out:
House value: £300k
Mortgage left: £100k, giving us £200k equity
£200k equity minus £30k PILs money
= £170k to spilt 50:50 (£85k each)

Here's how H has worked it out:
£200k equity split 50:50 (£100k each)
Minus £30k out of my £100k share to give to him, so I end up with £70k

To me, if that £30k had never existed, then we'd owe £130k on the mortgage now rather than £100k, so we'd be splitting £170k and getting £85k each. But H is very good at getting me muddled and coming across all knowledgeable and superior. So now I'm wondering if he's right and my share is £70k rather than £85k?

sooperdooper Sat 28-Oct-17 14:13:38

Why would the £30k go to him? It'd go to PIL - I think your calculation is right otherwise you're paying pay 100% of what you jointly owe to PIL

Ginmakesitallok Sat 28-Oct-17 14:13:45

Your way is right- he should end up with 30k more than you, not 60k more

JigglyTuff Sat 28-Oct-17 14:13:54

I’m afraid he’s right. The way you’ve split is means that you’re benefiting from half the money.

DoloresKeane Sat 28-Oct-17 14:14:46

Nope, he is wrong and trying to swindle you.

MyBrilliantDisguise Sat 28-Oct-17 14:15:39

No, he should end up £30K better off than you. It's good of you to do that anyway - I think your lawyer might try to persuade you not to.

JigglyTuff Sat 28-Oct-17 14:16:03

He’s not getting £60k more than the OP if he gets £100k and she gets £70k confused

Chocchip88 Sat 28-Oct-17 14:17:04

He needs to end up with £30k more than you, so you’re correct.

MurielsBottom Sat 28-Oct-17 14:17:42

He is trying to double his money so he gets twice the 30k back.
Your way is right.

Chocchip88 Sat 28-Oct-17 14:18:50

Jigglytuff if he gets £100k and she gets £70k that only makes £170k, the house has £200k equity - where’s the extra £30k gone?

Giraffesarequitetall Sat 28-Oct-17 14:19:15

You’re right OP.

SheRaaarghPrincessOfPower Sat 28-Oct-17 14:19:21

No, you're right. You take the £30k out of the equity, that's his, then you equally split what's left.

You get £85k, he gets £115k. Why would it come out of your half of the equity?

MurielsBottom Sat 28-Oct-17 14:19:27

Jiggly - he would end up with 130,000 which is twice what op would receive. Therefore double the 30k. He is trying to swindle op.

WildRosesGrow Sat 28-Oct-17 14:19:40

JigglyTuff, he would be getting £100k plus the £30k taken off the OP's share, which equals £130k. She would be getting £70k. So a difference of £60k.

The OP's way sound correct.

Aminuts23 Sat 28-Oct-17 14:21:18

Your way is right. Why should you repay his parents in full from your share?

Herschellmum Sat 28-Oct-17 14:22:08

Yep you’re right, although in fairness it took me a minute to figure that out. Maths isn’t my strong point. I think you’re being very reasonable and I am shocked he is trying to “make”so much out of this.

shouldwestayorshouldwego Sat 28-Oct-17 14:22:32

Think of it as if PIL want the money back now from both of you. You give them 15K, he gives them15K, they get 30K back. They could then give your 15K to him making him 30K richer than you.

JigglyTuff Sat 28-Oct-17 14:23:30

Oh I see! blush

starfishmummy Sat 28-Oct-17 14:25:54

I guess it comes down to wwhether the 30k was a gift to him only or to both of you.

If all his then 200k split = 100k.each. Then you pay him back the 30k. So he gets 130k and you get 70k.

If it was a joint gift then 200-30=170 which split 2 ways is 85k each

sooperdooper Sat 28-Oct-17 14:26:00

Is the £30k going back directly to you PIL? It should do, and not go to him, your way is definitely right

PiperAndLarry Sat 28-Oct-17 14:26:37

Phew blush thank you everyone.

Battleax Sat 28-Oct-17 14:27:33

You're right. He's either an arse or innumerate.

Don't engage with him further on the subject. There's no point. Let solicitors deal.

PiperAndLarry Sat 28-Oct-17 14:27:35

No, the money won't be going back to PIL.

Quartz2208 Sat 28-Oct-17 14:27:40

You are right he gets 115k and you get 85k basically the difference being the cash gift

His way he gets 130k and you get 70k an uplift of 60k. In effect his way adds the 30k on twice.

Quartz2208 Sat 28-Oct-17 14:29:50

In effect the best way of seeing it is as you both pay your PIL back the 30k (if they decide he can keep it so be it) and ask if a cheque can be drawn from the proceeds to pay them back.

Then that debt is settled in the same way as the mortgage leaving the remaining equity to split

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