We have agreed to separate and for my wife to stay in the family home with kids for further 4 years at which point she will sell the property. Estimated current value of house in €370k with €234k owed on mortgage leaving equity of €136k.
if we sold now and split equity we would each have €68k. However my wife is not in a position to buy me out and kids to remain the the home for stability over the next 4 years.
We are both looking to move on and are looking for a simple formula that is fair and we can both agree on. My wife has calculations that would mean my equity would drop from 50% to 31% over 4 years based on her paying the mortgage herself on her own. I would rather have the 68k now of course and cannot understand how this amount would reduce over the 4 years to €31k.
As we have been paying the Mortgage for 12 years together and she proposes to pay solely for an additional 4 years I would suggest a ratio of 6:10 years equating to a 3:5 split of equity at time of sale. Is this an acceptable method for calculating the equity or is there a simpler way of solving what must be quite a common problem?
thanks
if we sold now and split equity we would each have €68k. However my wife is not in a position to buy me out and kids to remain the the home for stability over the next 4 years.
We are both looking to move on and are looking for a simple formula that is fair and we can both agree on. My wife has calculations that would mean my equity would drop from 50% to 31% over 4 years based on her paying the mortgage herself on her own. I would rather have the 68k now of course and cannot understand how this amount would reduce over the 4 years to €31k.
As we have been paying the Mortgage for 12 years together and she proposes to pay solely for an additional 4 years I would suggest a ratio of 6:10 years equating to a 3:5 split of equity at time of sale. Is this an acceptable method for calculating the equity or is there a simpler way of solving what must be quite a common problem?
thanks