Hi everyone,

My husband and I are separating with a view to divorcing in two years' time (too complicated to explain reasons why we're doing it this way).

So far, we've managed to come to an agreement regarding maintenance and how we're going to continue parenting our children so that they still have quality contact with both parents.

My husband also wants to buy me out of our jointly-owned house, which I'm agreeable to. However, he's only offering me half of the value of the LAND on which it's built (which we jointly own) at the value of how much it cost to buy nine years ago. There's been no consideration regarding increase in value of the house (or land) since it was built back in 2001.

I believe that in England, in a case such as ours, the house (including land) would be valued and my husband would have to pay me half of the amount already paid back to the bank plus half of the increase in value of the house.

Does anyone know how it's done over here? I can't help but feel that I'm getting an unfair deal!

Thanks to anyone who can point me in the right direction.

Geordie Girl

I think the right direction would be to get good legal advise rather than rely on the help of internet strangers who might or might not know what they are talking about.

However, a couple of points to consider,

The value or land and property doesn't appreciate at the same rate as it does in the UK, and unless you live in one of the hot spots then the value of the land won't be much more than it was 9 years ago, and depending on what you spent building the house there might not be a lot of equity there.
Mortgages here are much longer than in the UK and you don't generally pay off the capital, so after 9 years it is quite possible all you have been doing is paying the interest.

I have no idea of the details of what you paid for the land, what it is worth now or what your banking arrangements are so as I say get legal advise, but don't be surprised if what he is offering you is actually a true and fair value.

On the bright side, the children are entitled to live in the house until 16 so if you don't agree and think you're being fleeced, don't move.

If he wants to buy you out, I'd recommend he consults the market price of the house and land and pays 50% - after all, he's not just fleecing you but his children too.

Lawyer-up.

Ok. That's great. Will check with my lawyer. Thanks for taking the time to reply.

Geordie Girl

Don't the local gemeinde have an 'official' evaluation process?

I say this because it was my understanding (maybe flawed) that if you own and live in your own house you are taxed as if you were receiving rental income from the property, based on the gemeinde's evaluation. This in turn being the reason nobody ever paid off their mortgage...

I heard the pension plan is a big issue.

I know a couple who tried DIY divorce. They worked out the details amongst themselves. When they went in front of the judge, the judge threw it back saying the pension plan was not considered. Eventually, they each had to get a lawyer.

Ah-haaaa. Of course. I think you have to put in your tax return form, if I'm right. Good thinking Batman.

Thanks for that

Geordie Girl

There is a fiscal value but it’s not based on actual market value. It’s calculated on a formula for tax purposes but, as stated, it’s not market value and can be quite a lot lower than the value you would get if you sold the property.

I cant read all the thread as Im a bit in a hurry, but I think I have a good solution for you.
First, you should find the FMV (Fair Market Value) of houses around the area wher eyou live, you can just go to a bank and ask how much they pay for taxes (this will let you know what is the estimate value of a home)
Now, your house is an assets as it is.
You first need to find the right appreacer for your home, then make sure you take into consideration the structure, etc.
If he doesnt want to pay that, you could get some money to rent an apartment for 24 months or something.
In my opinion he iether doesnt know the real value, or he is already being an a hole.
Even though he wants you to be "bought" why not just get a mortage on your part (that way the bank takes care of the appraisal) and make HIM pay the half. This is fair for both parties, and you dont have to deal direclty with your ex.
What you do is say, I need a loan (or your ex in this case) and say for half of the value of the house. That way they will give you an appraisal of the house and he will have to pay for it, deal with and you will know for SURE that:
A) you get paid
B) you are getting FMV of your property
C) you dont have to deal with little issues like (i will pay you next month, year./...never) and the bank is in charge of his part
Good luck

If you're married under the full sharing scheme, pension plan is actually very straightforward. The amounts are added together and then divided by two.

Have the whole property officially appraised and that would be the basis for any buy-out. I did that and it stands as the basis. This usually costs between 1200-1500 to get done.