Gifting Equity in Trust for children

[ProseccoThyme]

Am splitting up with partner & trying to buy locally, but it's very expensive & I can't afford it.

In order to minimise disruption to DC & keep them in the same school, ex-p is talking about giving me some "equity in trust".

I have no idea what this is, or what the implications are?

Does anyone have an idea?

Anyone?

I have a feeling what he is suggesting is not in my best interest.

Things to be aware of

Are you married
Are you 2 single people
Are the children shared with this person ?
Do you own a property together

Get all your financial info ready

Consult a family solicitor on your own

You will need child maintenance or shared custody of children

I have no idea what your ex is suggesting, do not sign or agree to anything without consulting solicitor

Good luck

Well isn’t he kind trusting you with some equity. No me neither.
As already mentioned, speak to a professional.

Thanks for responses; I'll try to answer these.

No, we are not married, but have 2 DC together.

We currently own our house jointly but I can't afford to buy him out.

He wants me to stay locally; I can't afford it. I have a job offer elsewhere which I'd like to relocate to & this is his last-ditch attempt to "help" me stay. But of course I can't take DC without his agreement.

Have already spent a fortune on lawyers & am no further forward.

I've never heard of this type is agreement before - I assume he gives me X amount of money which will be held in DC's name?

But I wonder what would happen if property prices went down, or if I wanted to move in the future, or what other issues there might be.

Was hoping there might be an IFA or mortgage adviser on these boards who knew more.

So you can’t afford to buy him out - can he afford to buy you out? And the money goes to you as joint owner - not the kids.

Had a conversation with him late last night; what he is suggesting is that he will give me a sum of money by buying me out.

And that the "top-up" I would need to stay locally would be provided by his dad, as a "gift of equity to be he led in trust" for the DC.

But his dad in 76 & there may be Inheritance tax implications if he dies within 7 years (a reasonable possibility) - hopefully not for me

I said it would sit more comfortably with me if his dad gifted him the money & he gave me more equity out the house.

I prefer a clean break & said any arrangement need to be between him & his dad.

Suggest

Get 3 valuations on the property

One of you guys the other out

Or

You sell & split the money

You then both go forward to buy or rent your own property

Set up child maintenance via CMS now

Yes agree with clean break

If he buys you out, how he does that is not your concern (agreements with his father)
All property & money transactions must go via solicitor & bank

Good luck

Maybe try posting in the property section on Money Saving Expert.

@Z2hnZag345 - he won't agree to sell, even though he has no legal right to & it would be best for me as we are in Scotland & places here go 10-20% over home report value, so I would get more money.

Have had valuations etc & close to agreeing a buy-out price, but it won't be enough to buy locally.

Hence his dad offering me money; but I am uncomfortable with this & will say to him that he & his dad can come to whatever arrangements they like, but I don't want to be involved.

I'll have a look at MSE

I believe you can go to court to force a sale

You need proper legal advice from family lawyer

@Z2hnZag345 - thanks - yes I could force a sale but it will cost tens of thousands & leave me about the same amount as the equity he is proposing. Plus take a long time - I just want out - have been living under the same roof for 15 months since we split up.