Asset splitting

[Simon1011]

Hi everyone

Hope you can help with my mathematics!

Me and my wife are splitting 2 X properties out between us and there will be an amount owing to the person who takes the smaller house. So..

Bigger house is valued at 270k. (left on mortgage 145k)
Smaller house is valued at 180k
(Left on mortgage 92k)

Am I right in saying that whoever takes the bigger house will owe the other taking the smaller house The amount of £19'866?

Thank you for your time !

Simon

[atticus]

OK, here's my arithmetic:

House 1: 270-145=125K equity
House 2: 180-92=88K equity
125+88=213K total equity
213/2=106.5K (half total equity)
145-106.5=38.5K balancing payment (more or less twice your figure)

But that takes no account of the need to pay the mortgages, and who will pay what. What is your thinking there?

[Xpatterdale]

My sums arrive at the same conclusion as Atticus but I would tread very carefully...

[Sam101]

SIMON1011 I see that you have started other questions about your divorce and it would be best if you stick with one only to avoid answers being mixed up.

Are both you and your wife represented by a solicitor? When applying for divorce, the Judge may not agree with the settlement if the split of assets is not seen to be fair and individual representation may avoid this. You have not mentioned Pensions in the assets to be split. Do you both have pensions to consider in the divorce?

[Simon1011]

Hi everyone.. so sorry for late reply This is the way I think it should be? would you guys be kind enough to double check the numbers again please? :-

Basically you add up the value minus any mortgage on both properties (net value), divide that by 2 and then subtract the net value of the property your wife keeps.

£270k - £145k = £125k
£180k - £92k = £88k

£125k + £88k = £213k

£213k/2 = £106.5k

Smaller property is worth £88k net so you pay £106.5k - £88k = £18.5 to my wife

[Sam101]

The figures are correct, but perhaps you need to consider the costs involved. Also have you considered pensions and how they are to be split?

[Simon1011]

Hi Sam thanks for reply but regarding the 145k number that was subtracted from the 106.5K (145-106.5=38.5K)

The 145k is the outstanding amount left on the mortgage for the bigger property..

I don't think this is right..?

Please advise and thank you

Simon

[Sam101]

I am only saying the figures you gave in your latest message were correct, which is what you asked for.

[Simon1011]

Hi Sam.. thank you so much for reply,,
Yes I understand there will be extra costs which I also need to work in but firstly I wanted to be certain that I have got the property split right first. We both have mortgage in principles in place for us to take on property's in our own names. The second property has been empty for over a month now so want to move forward before we divorce. I also understand that there may be capital gains tax payable now rather than later on the smaller property (its in my name at the moment) if we transfer over after the divorce. Otherwise we would have to wait 5 + months for the divorce to go through before we can move forward..
It is important to me going forward that this is fair. We have a little 5 year old also so want everything to be amicable which it is at the moment.
In fact my ex wife will need my help will need my help with many things after we are divorced. She does not drive so i will probably still be taking her to work etc and also English is not her first language. Regarding property's the flat was originally mine before she came to live with me and it has been me how has paid all the mortgages over the 13 years. (just to give you some background)

My wife does not have a pension but i do. My wife agrees that it would be a bit harsh to take half my pension so will probably not be claiming on this.

We have also been working on a building a nice property in Africa which is nearly done. I will probably let her have this property so her mum can live there as at the moment she only rents. Also she could maybe rent out also to gain extra income for them both

I feel like it would be good to have something in writing if we are going to do all this before we divorce but understand unless it is a clean break order nothing will hold much water in court. Like i say my wife is on board with all this and I see no reason why she should change her mind or put a claim in for something els in the mean time. I mean even if she was to change her mind or put a claim in as long as i have worked things out to be fair I can see what she would claim for..

Like i say everything is very amicable so I really don't think this will be a problem anyway. I am just trying to think of all the options..

I will say one thing I/we so badly need to move forward with this now. It is causing so much anxiety. I just wanted to try to talk over with you guys first who may have been through similar situations

Hope to talk soon

Simon