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Mumsnet has not checked the qualifications of anyone posting here. If you need help urgently or expert advice, please see our domestic violence webguide and/or relationships webguide. Many Mumsnetters experiencing domestic abuse have found this thread helpful: Listen up, everybody

Original poster

Splitting money minus family gift

45 replies

PiperAndLarry · 28/10/2017 14:10

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?

OP posts:
sooperdooper · 28/10/2017 14:13

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 · 28/10/2017 14:13

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

JigglyTuff · 28/10/2017 14:13

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

DoloresKeane · 28/10/2017 14:14

Nope, he is wrong and trying to swindle you.

MyBrilliantDisguise · 28/10/2017 14:15

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 · 28/10/2017 14:16

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

Chocchip88 · 28/10/2017 14:17

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

MurielsBottom · 28/10/2017 14:17

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

Chocchip88 · 28/10/2017 14:18

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 · 28/10/2017 14:19

You’re right OP.

SheRaaarghPrincessOfPower · 28/10/2017 14:19

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 · 28/10/2017 14:19

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 · 28/10/2017 14:19

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 · 28/10/2017 14:21

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

Herschellmum · 28/10/2017 14:22

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 · 28/10/2017 14:22

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 · 28/10/2017 14:23

Oh I see! Blush

starfishmummy · 28/10/2017 14:25

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 · 28/10/2017 14:26

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

Original poster
PiperAndLarry · 28/10/2017 14:26

Phew Blush thank you everyone.

OP posts:
Battleax · 28/10/2017 14:27

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.

Original poster
PiperAndLarry · 28/10/2017 14:27

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

OP posts:
Quartz2208 · 28/10/2017 14:27

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 · 28/10/2017 14:29

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

SheRaaarghPrincessOfPower · 28/10/2017 14:32

Why does everybody keep going on about paying back PIL? OP stayed that it was a cash gift Confused

Starfish - that's not correct, the entire £30k should not be paid by the OP.