Help! Someone who’s good at maths, how much do I owe ExH?

[PuddleCake]

I’ve sold family home and we are splitting the profit (just the profit, not my equity) 70/30 to me. Ex and I have come up with different calculations….

House sold for 710k

I bought it for 327k (this included mortgage of 175k, I have £155k left to pay on it). Ex wasn’t on mortgage and didn’t put any money into sale.

I've spent 100k on renovations, this includes all legal and estate agents fees

Ex spent 27k on renovations

I owe ex 7k from previous house renovation

I got the same as this.

I think you're being very slightly unfair because you're taking his 7K owed from an unrelated transaction out of the calculation of the profit on the house rather than adding it back on on the end. That means you're undercounting the profit to be split by 7K and undercounting his share by 7,000 x 30% = 2,100

That's why so many posters have ended end up with you owing him 110,800 (in my case, 83,800 + 27,000) rather than your calculated figure of 108,700.

Ah ok! I hadn’t thought of that…

The reason your calculation is slightly out from what many of us have done on this thread is that you are counting the 7k you owe him as part of the cost of the house, so coming off the profit. Since it is other debt, most of us would split the profit before that sum, then you would refund that sum from your portion of the profit.

Not a huge difference, but the reason you have a slightly different result.

x post!

So bearing that in mind, I’d be happy with giving him 110,800

This is what I came up with. It’s admirable that you’re able to see that the value that his work on the house plus his small investment is worthy or a fair recompense. Well done!

However don't give it to him until you and he agree in writing this precise amount is in full settlement as he could come back for more later.

That is the first figure I came up with and several others did the same, so think that is a fair decision. But I do think you should at least get it in writing, maybe see a lawyer before giving him that.

I think you're treating your deposit wrong OP, that was a huge sum you put in and it's had a big return. That should all go to you.

710 - 127 in renovations = 583 remaining from sale

46.48% of this to you as your deposit increased in line with the property = 271

710 sale - 127 renovations - 271 deposit with return - 155 mortgage = 157 to be split.

Split this 157 in 70/30 = 110 / 47
Adjust this for the 7k = 103 / 54

OP: 271 + 100 + 103 = 474
Ex: 27 + 54 = 81
Bank: 155

Why are you splitting the profit like that? I would pay him the 27,000 and the 7000 that you owe him and that is it.

He lived in the house rent free and gets his original stake back plus 30% of the profit in recognition of the work he put in.

Sale price £710k

Your stake £427k (ignore the mortgage as you paid all of the repayments and will need to repay the £155k
His stake £27k

So profit = £710k - £454k which is £256k

He gets 30% of that which is £76,800 plus his original stake of £27k and the £7k you owe him.

Total £110,800

You get the other £600k out of which you need to repay the mortgage.

You must be crazy! You are not married and you are thinking of giving him £100,000 when you have a family of your own to look after? Are you a people pleaser generally?

In answer to why I’m sticking to my word, he:

Fitted the kitchen
Fitted and plumbed two bathrooms
Fitted cloakroom
Replaced the roof
Landscaped garden twice using a digger, including laying large patio and replacing fencing
Rebuilt large wall
Replastered most rooms
Replaced rotten skirting boards and window sills
Hung 10 doors
Laid wooden the floor for the whole of the ground floor
Built car port
Laid foundations for double storeyextension and helped all stages of the build

This is off the top of my head. He’s also paid substantial monthly money towards bills etc (although I’ve always stated I’ll deal with the mortgage) and supported the family well both financially and practically.

This is why I feel it’s fair.

Yes, I’ll definitely be getting something drawn up so he can’t come back for more. Just wanted to work out how to draw it up first as so complicated!

I'm glad you're not being petty or mean about this. He's done a huge amount of work on the house. There still seems to be a bit of a grey area on whether he paid towards the mortgage too.

There are people on this thread who seem to make assumptions and want you to lord it over him or punish him - not sure why.

Hope everything goes as smoothly as possible for you both.

Well done for doing the right thing. Break-ups don't have to be all about getting the most you legally can, and both parties coming out of it feeling like the settlement is fair is by far the best outcome, and will do wonders for your co-parenting going forward (if you have dc together).

They have two DC together - presumably they'll benefit from their dad having the price of a deposit after the years of work on the family home.

Agree with you - it is really worth working for a fair split and good future relationship here.

It's definitely the right thing. He's contributed a lot towards things when he has lived there, he deserves a fair share. You are doing the right thing.

@PuddleCake I think given the huge variety of answers on thid thread, your calculation and your Ex's are actually quite close together.

In the interests of good will I think if it wouldn't cause you and your DC hardship, go with his higher figure. It will be beneficial to your DC both to have their dad more financially stable and also to minimise the animosity between their parents. If that would be too much of a squeeze for you then suggest a half way point between his figure and yours. It's obvious from this thread that there are dozens of different ways to do the calculation so both of you need to accept that there is no single "correct" answer.

Of course anyone would rather take the lot but ultimately where will that leave my family in the future? Me in a big house with DC who spent their time with their father in a flat when he could have had a decent house and parents who hate each other? Not a great trade off imo..

Good for you trying to be fair.

I think you do need to take stamp duty and all the fees into account too. It is part of the cost of buying and selling so comes out of the profit. Won't make a huge difference but you shouldn't shaft yourself any more than you should him.