Equity split - ex quit job

[Jw1102]

My ex used to earn about 32k and I earn about 40k. We are due to sell the house after divorce and I expected a straightforward split of 50/50 (90k each) as there are no special circumstances from our time together, amount we contributed etc. He quit his job a little while ago to supposedly concentrate on setting up a business. This is yet to be fruitful so he survives on benefits and handouts from his mum. His solicitor has advised him he could be entitled to more than half the equity due to his lack of income/mortgage raising capacity/current inability to house the children in a big enough flat.He currently rents a 1 bed maisonette (with three beds). He won’t have any mortgage raising capacity due to no steady income. When he gets the equity he will presumably live off that while renting a bigger flat until it runs out and he goes back on benefits in a few years. Even if he got more equity he still won’t get a mortgage surely, so it would just be giving him a bit more to run through.I was hoping to buy a 2 bed property with half the equity. Has anyone been in a similar situation and is able to advise please? I wouldn’t mind giving him more in theory, but it would mean me not being able to buy and I’d struggle to afford to rent as rent is much more expensive. So I’d end up being in a worse position because of his questionable choice to quit work.
If it makes a difference, we have two youngish girls. At the same time as quitting work he started to push for 50/50 care (has been happy with 30/70 til now) so will probably have that soon. I tried to argue that he can’t give them stability right now so shouldn’t take them on more but he is determined to have 50/50. Thanks!

His solicitor is talking nonsense. The equity split will be based on his earning capacity, not what he currently earns.

Consider for example how a court would deal with a high earner on £200k who quit their job to work on a checkout. They're not just going to shrug and decide they can only earn £20k so therefore need more equity after all. The same will apply to your ex.

@ShinyShona thank you. I wonder whether, if using his earning capacity, our relatively small income disparity (32v43) would mean he could still claim more. Normally I only see equity not being divided equally when one is a much higher earner or one has limited their income due to child care etc.

My ExH lost his job due to a stupid action, the judge used his earning potential not his actual income.
10 years later he still believes I did a number on him, when in fact if he hadn't lost his job he would be really well off.
So he is unlikely to get more, but highly likely to bear a grudge about it!

The difference in mortgage capacity would be the deciding factor. As you would both have the girls but you might have them slightly more and he would pay CMS, your mortgage capacity would be bigger so some departure from equality might be merited.

However, as he is no longer working and cannot buy at all, it means if you wanted to you could make a case to use most of the equity in the short term to house the girls. He doesn't need it because he cannot buy yet.