House divide
Question
I have a joint mortgage with my partner, but there's a chance that I may split up with her. As I also pay 80% of the household bills, is this recognised as a percentage share of the proceeds from the sale of the house? We also have a six year-old child, and there may be a conflict over custody.
Answer
This is a difficult situation for you, but there is a way forward here, with options depending on whether or not you are married.
If you are married, then under the law, there is a 'duty to maintain'. This is a two-way obligation between you as parents to your child. If you decide to divorce, a financial settlement is agreed. It might be that things are split 50/50. Although, if the judge feels this split would not be in the best interest of the child, it is possible that the divorce will not be granted until a more equitable settlement is made.
If you are unmarried parents, there is no duty to maintain. This means the property has to be split along lines that reflect the ownership of things like gifts and monies. Most of this is of minor consideration when compared to the ownership of the house and the shares that each person has in the property.
The division of any profit from selling the house will depend on what is called "beneficial interest". Beneficial interest is the financial interest that you have in the property. This is determined by the amount of capital you put into the original purchase of the property and subsequent mortgage payments. Legally, no account is taken of household bills, as could be done in the case of marriage. However, many couples do take these things into account when they split up and are determining their percentage of the profit.
In your case, you may be entitled to an 80/20 split if that reflects your financial input into the purchase of the house, excluding bills. If your partner put a larger percentage than 20% into the purchase then that will be reflected in the amount she gets out.
If you take the child with you, your ex will have a duty to pay a contribution towards their maintenance, which, under Child Support Agency (CSA) rules, will be 15% of her net income.
Updated: 05/09/2006
Question answered by CAB
