What exactly does "buying your OH out of the house" involve?

[bjf1]

If your family home is valued at £210,000, you bought it for £180,000 with a deposit of £70,000, and have £90,000 left to pay on the mortgage, how much do you give to OH on separation?
Am trying to understand if I can afford to do this, but confused.
Do I take on the £90,000 mortgage payments and he gets nothing, but has no mortgage payments to find?
Do I have to take on the £90,000 and pay him a lump sum to compensate for the difference between £90,000 and £180,000 (original price) or
Do I take on the £90,000 mortgage payments, and pay him a lump sum to compensate for the difference between £90,000 and £210,000 (value now)?

Or is it none of the above and we have to sell and each take a lump sum from the sale?

He needs 105k from you!

So, you keep the house, 90k mortgage and pay him 15k

However if you have dc, you may say he has to in effect pay some of the mortgage as rent until they leave home

Sorry for short posting, on phone!

210/2 = 105k
90/2 = 45k
105 - 45 = 60k to him

Don't forget you may be entitled to a proportion of his pension which can be offset against his share of the equity in the house - which might make it affordable.

It depends on so many things. If he has a massive pension and you gave up work when you married, it might be fairer to split the equity 70/30 in your favour. But if it is a short marriage, no children and the property is in joint names, the equity should be split 50/50.

Also might depend on who put in the deposit.

You have got an equity of £90,000 so 50/50 split is £45,000 each. But there are so many other factors to consider in order for it to be a 'fair' settlement.

Ah, so I would have to pay him half of the present value?

How would it work if I just took on the £90,000 mortgage and give him nothing and that would mean he could walk away from any future child maintenance payments? Is that possible/legal?

I disagree HerNotness. They have an asset worth 210k, so entitled to half each. Notwithstanding children's 'rent' support or offsets such as nitadisneymum said

You give him £110k cash (half of the £220k equity in the house) and the house then belongs to you and you have £90k left on the mortgage to pay on your own

Personally I would try the 15k is rent for keeping a roof over dc's heads but 'living costs' maintenance still payable.

Agree re deposits though which may not make it an equal split of the asset

oops after wine o clock and I got the figures wrong

Market value now = £210k
less mortgage outstanding = £120k

you give dh £60k

the house then belong to you but there is a £90k mortgage which is yours not dh's

ooops, mistook mortgage for equity. Sorry. You are only dealing with the equity, the 'value' of the house isn't relevant. It is what you would get if you sold.

He might not be keen on walking away if you say you won't seek child maintenance, as I don't think there is anything to stop you changing your mind about that later. But he might think it a good deal, worth a try.

Sorry, ignore comment re 15k. Fried brain.

In fact, just ignore me

I give DH £60k AND pay off the £90k mortgage? That sort of means I've practically paid for the house myself AND he pays no maintenance. Is that right?

You are living in the house - you pay the mortgage. He will have to pay rent/mortgage somewhere else.

Maintenance for you and the children is a different matter. But he is entitled to have somewhere to live. If he can't afford to pay maintenance and his own housing costs, I am afraid you will have to sell, buy somewhere cheaper or rent yourself.

Sorry, hit post too soon. OR you can have an order whereby you keep his share in the house until the children are 18 or finish full time education and then you sell up and pay him his share.

They don't have full equity, the house is worth 210k with a 90k mortgage. Therefore 120k equity. If they were going to sell up they would split that 50/50, 60k each. That's what the H should get to buy him out. OP would have 60k equity and a mortgage of 150k to keep the house. Unless I'm missing something?

My MIL got a 60/40 and they didn't even have children he just wanted to get divorced more than she did, it's not always 50/50 and nor should it be.

I think HRN is on top of the figures tonight!

Don't forget to factor in costs of sale and deduct that from equity. Prob be about 3%?

The court will test any final order against a yardstick of 50/50. There are many reasons why it wouldn't be fair - childcare, loss of earning capacity, small pension etc, etc.

OMG, why is it so complicated?
I am trying to work out if I can afford for me and 3 DCs to stay in the family home, without forcing my DH into poverty.
The deposit for the house came from the sale of his previous house. He had bought it prior to us getting together, but we got married whilst still living there.
So the deposit for this house actually came all from him.
He has no pension, so to speak of, no big ISAs, investments, whatever. He views this house as his pension plan.
However, the DCs see this, obviously, as their home, so I am trying to figure out a way to stay here with them.
Best way to do this please?

It's only because it's still the afternoon where I am

If your H is looking at the house as a long term thing, maybe investigate where you stay in it with the DC until the youngest is 18 and then sell it and split the equity. I think you'd pay the mortgage as you'd have the benefit of living in it (could be wrong)