I may be out of this marriage (sadly) very soon. I want to ask if anyone thinks this is an unreasonable approach to division of the property. When we bought the land about 2 years ago, we paid 23,000. In the meanwhile, we have built a lovely home on it. My husband has made it quite clear he has no intention of 'giving up the house'. I do not want to spend a fortune on attorneys, so I am looking to possibly try to mediate this situation out.
In the last 6 months or so, the area we live in has gone crazy with land prices increasing in an unbelievable way. Our neighbor has a lot that is on a main road....somewhat faces the canal... and the asking price on that property is $70,000. Our property, off the main road and on the largest expanse of the water is without a doubt worth that much - and most likely more. As a matte of fact, lots down in this area are going so fast that real estate people are out actively looking for them. But, enough of that.
Because of the increase - I was thinking of negotiating on the land only. If we divorce now, I am positive the land value is going to increase heavily in the coming years. I actually do not want this divorce, but, I don't think I can stay. Anyhow, I was thinking that I might approach him with a deal....that in the next 5-7 years, if the value of the land (not the house itself) increases dramatically, that I would share in the value on a yearly basis. If it goes from 70,000 to 95,000 in the next year, he would be obliged to split the 25,000 with me. I ask this because when we married, I initially paid cash for this property (which he insisted on paying back to me - which was eventually spent on the house itself - but that is another story). I also at that time sold my home so we could build this new house together, so now I have nothing that is truly mine. I plan on leaving and returning to another state and begin my life again if we cannot resolve our problems. I feel that because I am an integral part of this real estate, and I do not wish for the divorce, and am literally going to be walking away with almost nothing, that this request is reasonable. Can anyone out there tell me what they think? I need to start making concrete plans to do something other than just sit here and worry. <img border="0" alt="[Teary]" title="" src="graemlins/teary.gif" /> Thanks. CLK-K

You only want to split the increase in the value of the land from what it is now?
If it's worth $70k now, then you should get at least $35k. Also, the land is going to be worth more than the neighbors because it is developed.

How did you spend the money from the sale of your (previous) house? Was this used to buy the land?

A - Personally, I would figure out the value now (get at LEAST 2 estimates from local real estate agents).
B - Figure out how much everything was purchased for. Subtract B from A and split this.

Things may be be different over here in the UK, but why wouldn't you just get the land and property valued and split it 50/50?

Graeme

Well, if you built a home, unless you have large amounts of cash on hand, I suspect there is a mortgage on the property.

So, in most cases, not only do you get half the value of the home, but you also get half the debt on the home. (And other debt as well)

There are ways to negotiate this, and yes the laws vary regarding the comingling of assets brought into a marriage. So perhaps if he is keeping house, it's debt and equity, then there are other assets that he can offer you.

Are there other assets, stocks, retirement accounts, etc that he can give you instead of the house?

Tony

<small>[ August 08, 2004, 11:35 PM: Message edited by: laura_lee ]</small>

My guess would be 50% of the equity.

Get a couple estimates for the resale value, deduct the debt owed on it and split the difference. In some cases a spose will give up equity to avoid paying SS. If you think you will be paying him CS or SS, use the house as leverage to minimize that.

WIWH

Thank you all for replying.
My husband has been EXTREMELY possessive about this house since the beginning. I know he will not want to give it up (if I leave). I also know that it will hit him hard in his 401k if he has to pay me off completely at once. And even tho' I haven't much sympathy, I don't know if he could afford to pay back (thru bi-weekly paychecks)if he takes a loan on the 401K. That is why I was trying to negotiate something that would let him keep the place...and at the same time allow me to profit from the raising value.
On the other hand, he just might have to sell his motorcycle and boat to pay me off.
Anyhow, deep inside I am not a rotten person...and I would prefer to do something that would leave us both in a non-hateful position.
And yes, not only did the (small) profit from my previous home go into this house, I also ended up withdrawing 3/4 of the money that he gave back to me from my initial purchase of the land to do extra things to the house. So, during one heated argument about 9 months ago, he had the audacity to say he'd give me $10,000. At that time I was so crushed emotionally that it wasn't the money that hurt me...it was the fact he was willing to buy me out-and think I was stupid enough to say yes. I gotta tell you, I have only been married 2-1/2 years....but I never had any idea that marriage could actually be so bad. But slowly I am returning to normal...and gathering strength. Again, thanks to everybody who replied. ckk

Just brainstorming a bit...not sure if you/H purchased acreage or just a lot to build on. Is this area going to be developed into track houseing? If you bought several acres, perhaps it wouldnt be a bad Idea to keep a couple for yourself in the event that it is going to be developed in to 1/4 to 1/2 acre lots. Then you might be able to sell your portion to any developers at a nice profit if the land is prime real estate. Definitely get a couple of appraisels..that is sound advice. I think you might be selling yourself short with your negotiations. You put up the money from your previous house along with other investments. I dont know your story but I am sorry that you and H are heading down this road. Protect yourself and truly get what you have invested back into your pocket. Sounds like you have done well for yourself before marriage, no doubt you'll continue on your path of success. Best wishes

So, in most cases, not only do you get half the value of the home, but you also get half the debt on the home.
If he keeps the home he keeps the debt.
Rather than splitting the entire value of the home AND the debt, simply split the equity (of the home AND the land).

He could pay you a lump sum (if he has it available) or he could make payments. Make sure it is spelled out how much he will pay and how he will pay it (& when-monthly, semi-annually...).
If it payed out in payments, you could collect simple interest on the amount still owed.

</font><blockquote><font size="1" face="Verdana, Arial">quote:</font><hr /><font size="2" face="Verdana, Arial">Originally posted by Chris -CA123:
<strong> So, in most cases, not only do you get half the value of the home, but you also get half the debt on the home.
If he keeps the home he keeps the debt.
Rather than splitting the entire value of the home AND the debt, simply split the equity (of the home AND the land).

He could pay you a lump sum (if he has it available) or he could make payments. Make sure it is spelled out how much he will pay and how he will pay it (& when-monthly, semi-annually...).
If it payed out in payments, you could collect simple interest on the amount still owed. </strong></font><hr /></blockquote><font size="2" face="Verdana, Arial">I think we are saying the same thing. You "simply" write down all the assets and all the debts and if he takes the home, then that goes into his column, both the value and the debt for the home. She would take a similar amount of assets and debts.

If the home is the biggest rock in the jar and is bigger than all the other rocks combined, then yes, he will have to buy her out.

However, depending on the disposition of other assets, including "her" assets, he may not have to give her half of the equity.

FWIW,

Tony

He is going to have to buy me out...and and at a lot higher cost than either of us imagined. I swear...I am trying to be fair - to both of us. But he has an illusion of me leaving for a nickel on the dollar...I think when I was younger I was more prone to this. I am now 50 years old, and my time is also slipping away. ckk