Looking for pointers on ratio of split of equity in marital home, please

[Vitamin33]

My son is separating from his wife. They have a house together, on which he has done a lot of work (he's a gas and heating engineer and among other things has fitted two new bathrooms and air conditioning). In August when the property comes up for remortgate his wife is going to buy him out of his stake (with help from her parents). They have a baby together. He is looking to find out roughly, just roughly, how much of the equity he will be entitled to, as he has to start over. He will be contributing to daughter's upkeep. He basically wants to know if he's entitled to, say, 30% or 40% or 50% of the equity? He just wants an idea at this stage. His wife works and earns more than him. The equity probably comes to about £175K. Thank you for any/all comments.

[Peridot]

Hi Vitamin33,

It is difficult to say as there are many factors that come into play. The starting point is 50/50 split however other factors such as earning capacity and children will come into play also. The fact that he has installed bathrooms, heating etc will not generally factor.
The s25 factors are the issues a Court would consider and they can be found here:- http://www.legislation.gov.uk/ukpga/1973/18/section/25

As you can see the things to consider are considerable, length of marriage, pensions, other finances available to parties etc. It is encouraged that parties mediate to try and reach an agreement between them rather than go to the expense of Court and a Judge deciding but firstly they do need to be open about their finances and assets they have. Everything is then in the 'pot' to be divided.

If one party is homing the children full time for example then their needs will of course be more, rooms for the children etc although sleep over child arrangements also need to be taken into consideration. It is unusual for a couple to be in a position to divide everything and both be re-homed in the sort of property they were used to as a couple as there simply is not sufficient money to do this so there are different ways to try and achieve the fairest outcome such as a charge against a property so once the children reach a certain age for example the person receives their sum whether through property sale or remortgage by the one living there. It would all very much depend on the couples finances and their ability to home themselves to an adequate level I'm afraid.

If one party has the children living with them then generally the balance would move in their favour eg 60/40 but as I mention this does depend on earning capacities along with the other s25 factors.

The child maintenance is a separate issue altogether and although based on earnings of the parent not living with the children, is not something that would reduce or increase the division of the matrimonial assets of the couple.

Have they discussed the division of the matrimonial assets yet?

[Vitamin33]

Hi Vitamin33,

It is difficult to say as there are many factors that come into play. The starting point is 50/50 split however other factors such as earning capacity and children will come into play also. The fact that he has installed bathrooms, heating etc will not generally factor.
The s25 factors are the issues a Court would consider and they can be found here:- http://www.legislation.gov.uk/ukpga/1973/18/section/25

As you can see the things to consider are considerable, length of marriage, pensions, other finances available to parties etc. It is encouraged that parties mediate to try and reach an agreement between them rather than go to the expense of Court and a Judge deciding but firstly they do need to be open about their finances and assets they have. Everything is then in the 'pot' to be divided.

If one party is homing the children full time for example then their needs will of course be more, rooms for the children etc although sleep over child arrangements also need to be taken into consideration. It is unusual for a couple to be in a position to divide everything and both be re-homed in the sort of property they were used to as a couple as there simply is not sufficient money to do this so there are different ways to try and achieve the fairest outcome such as a charge against a property so once the children reach a certain age for example the person receives their sum whether through property sale or remortgage by the one living there. It would all very much depend on the couples finances and their ability to home themselves to an adequate level I'm afraid.

If one party has the children living with them then generally the balance would move in their favour eg 60/40 but as I mention this does depend on earning capacities along with the other s25 factors.

The child maintenance is a separate issue altogether and although based on earnings of the parent not living with the children, is not something that would reduce or increase the division of the matrimonial assets of the couple.

Have they discussed the division of the matrimonial assets yet?

Thank you very much, Peridot, for taking the time to respond. I will check out the links. Very helpful. They are being civil and amicable and are discussing the matrimonial assets, although aside from equity in the house there isn't anything of notable value, pensions are new and not worth much, no additional savings or valuable heirlooms, etc. The finances are transparent, as they've lived very jointly, so to speak, which will hopefully make things simpler. Again, thanks for replying.

[Peridot]

All the best, your son needs to keep the communication lines open as far as he can is the best advice. Here if you need any more pointers down the line.