partner and I separating, am I compromising my legal position re house by moving out?

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ailbhe

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My partner and I am separating. We bought a house 2 years ago. It is in joint names as is the mortgage.

Due to the market we want to hold on to the house and sell in a few years.

The choice was that I stay and pay half the mortgage while he moves out and pays rent. Or I pay rent and he stays and pays all of the mortgage (due to his earning power). I feel I need a fresh start and have decided to move out.

The mortgage comes from his account and I pay for food, bills, creche for my daughter etc. I am worried that if I move out and am no longer "contributing" to the house in an obvious way that I will weaken my claim on the house for the future.

My ex is happy to stay in the house and pay the mortgage and either buy me out in a few years (he wouldn't get a mortgage at the moment by himself) or sell and split the proceeds when/if the market improves. He is willing to go and sign something official which states this.

We both know a lot could change in 2 years though and I want to make sure I am protected should we end up in a bitter feud.

Any advice?
 
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Re: Am I compromising my legal position by moving out?

Your ex-partner may be very amicable, but you have to consider future likely events.

In a few years time, you will both have moved on with your lives. It is likely that there will be another woman on the scene by then - there is a good chance he could be married with children and this family could be living in the house. Whereas he may say now that he is willing to sell in a few years time, a future wife and children residing in the house may not have the same view. His financial circumstances may also be very different and he may not be able to buy you out.

Your decision is essentially weighing up the future risks associated with both of you moving on versus any money lost is selling the house now.

Are their any other options open to you? If you have decided to make a fresh start, would you be better taking your share of the house proceeds now or at the very least dumping a risk (his changing circumstances & property prices)? Is there any way that your ex would be able to buy you out now with help from other sources e.g. rent-a-room, relatives, buying with friend?
 
Re: Am I compromising my legal position by moving out?

I think you should go to a solicitor yourself and explain to him exactly your situation and that your partner would be willing to sign an agreement to sell. Ask him is such an agreement enforceable? Can you get him to sell within a specific time frame. If he chooses in a few years to remain in the house who decides what its worth?
Probably your best route is to sell now but failing that go to a solicitor
 
Re: Am I compromising my legal position by moving out?

We could sell but it would be at a loss.

He cannot afford to buy with anyone. None of his friends live in this area, none are in a position to buy a home. His parents have recently separated and both have new mortgages so they cannot either.
I also have nobody in a position to buy with me and my parents are building a second home so that isn't an option either.

If he does have a wife and child residing in the house I would be open to the idea of him buying me out. I just don't want to make a loss on the property as things will be very tight as a single parent and it is the one asset I have.

My child is from a previous relationship so there is no maintenance etc. I will be living off my wage which is not a lot.
 
Re: Am I compromising my legal position by moving out?

If either of you move out and then make a gain on the future sale there would be a Capital Gains Tax liability on the sale of that persons share so that is worth bearing in mind.
You should seek legal advice. It may be possible for both of you to enter into a property ownership agreement which would contain a clause that the property will be sold in x years time.
Perhaps a room could be rented to go towards mortgage payments?
 
Re: Am I compromising my legal position by moving out?

Are you married?

The position can be quite different depending on whether you are or not. Really you need expert advice on this one.
 
Re: Am I compromising my legal position by moving out?

dazza21ie said:
If either of you move out and then make a gain on the future sale there would be a Capital Gains Tax liability on the sale of that persons share so that is worth bearing in mind.
Click to expand...

V good point
 
Re: Am I compromising my legal position by moving out?

I think best advice as above is to seek professional advice from a solicitor at this point. You can then make your decision being fully informed of all the pros and cons. That way you cant say in the future I wish I had known this or that.
 
Re: Am I compromising my legal position by moving out?

Ailbhe, sorry to hear about the change in circumstances.

The quick answer to the question posed in your thread title AFAIK is "No" as both the property and the mortgage are registered in joint names and changes in registrations will require agreement from both of you.

I would suggest the following:

1) If you both used the same solicitor for the house purchase / mortgage, one of you now finds a different legal representative to avoid a conflict of interest in future dealings

2) Appraise new solicitor of circumstaces and request copies of all joint paperwork from former solicitor

3) Draft an agreement that states (a) whoever remains in situ in the house requires the written agreement of the other party before allowing anyone else to reside there (b) when time comes to sell, the CGT problem will be shared (you can't share the Revenue bill but whoever pays the bill can be compensated in other ways)

HTH.

(Sorry missed reading tester1's response before posting)
 
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Re: Am I compromising my legal position by moving out?

mathepac said:
when time comes to sell, the CGT problem will be shared (you can't share the Revenue bill but whoever pays the bill can be compensated in other ways)
Click to expand...

This in turn could result in gift tax which only highlights the complexity of the situation.
 
Re: partner and I separating, am I compromising my legal position re house by moving

"(a) whoever remains in situ in the house requires the written agreement of the other party before allowing anyone else to reside there "

I wouldn't agree with this, it's would be like trying to control your ex's life

For a clean break it's best to sell now. If you both don't want to do that then you should draw up a legally binding agreement as to what is to happen in the future.
 
Re: partner and I separating, am I compromising my legal position re house by moving

Update: We went to a solicitor and had decided to draw up an agreement where he took the financial hit of my share (mortgage less amount we would rent it for divided by 2) for 2 years without it affecting my interest in the house. We were both in agreement with this and were to sign an agreement next week stating same.

However, he has now informed me he cheated on me while we were together and within a week of splitting up with me he was going out with this new girl.

I have tried to take it on the chin and keep things amicable but my nose keeps getting rubbed in this new relationship and he informed me today that she stayed in the house at the weekend.

I have decided I want a clean break and do not want to be tied to this heartbreak for the next 2 years.

I want to end it properly and go our separate ways both emotionally and financially.
He is going to go mental when I tell him but I feel it is for the best as I am not benefiting from keeping the house (I cannot apply for affordable housing/council housing) and I just want to put this sorry mess behind me.

C'est la vie.....
 
Re: partner and I separating, am I compromising my legal position re house by moving

Better off rid of him Ailbhe! I think that would have come up sooner or later to be honest so you are better off moving on and cleaning your hands of the whole thing.
 
Re: partner and I separating, am I compromising my legal position re house by moving

Tough situation but definitely better out now. Things could easily get so complicated in a short space of time and you could be chasing shadows for years.
 
Re: partner and I separating, am I compromising my legal position re house by moving

You are definitely better away from this horrible situation if possible.
Are you going to have to pay him money to get out of mortgage however?
If so, is there any way you can negotiate on this, as the suggested agreement is now untenable for you?
If you are worried that he is going to have a huge reaction to your suggestion, is there someone you could get to be present and mediate when you say you are not happy to go through with the current plan?
Given his current level of insensitivity it might also be hard for you to stay calm when you have to face him, and a mediator might help keep things from getting out of hand.

Nicola
 
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