Asset value Vs Contributions

SlowBlowin

My best friend has recently split up with his eastern European girlfriend, she ran off with another guy. They had bought some land together, registered in both their names, and started to improve the land.

She now wants money, and has listed every living expense she incurred, including the loan payments for the land she made working as a waitress while my friend was working the land, building, digging ditches etc. This running total of things she paid for greatly exceeds the current value of the property, by several times.

Is she entitled to every bill shes ever had, or 50% of the current market value of the property ?

CIARAN_BOYLE

SlowBlowin wrote: »

Is she entitled to every bill shes ever had, or 50% of the current market value of the property ?

50% of market value would be the standard.

The other approach would to say I spent 60 you spent 40 we own the asset 60/40 give me 60% of the market value.

hullaballoo

I'm not being funny here but how would we know?

This is the sort of thing legal professionals need to get into in some detail before advising; all the facts and figures need to be looked at in depth and frankly a few lines of a second-hand story on the internet just isn't enough to say one way or another.

I'd suggest your friend engages a solicitor sooner rather than later to look at this.

SlowBlowin

hullaballoo wrote: »

I'm not being funny here but how would we know?

I would have thought someone with better legal knowledge that me might be able to give some insight, maybe someone will.

My friend saw a solicitor the day before meeting her, she has based everything on how much she paid, he believes it should be based on a share of market value. He is seeing the solicitor again when he gets back (solicitor is on holiday).

I thought this is what the forum was for ?

CIARAN_BOYLE

Don't forget to take into account gift tax

Ie if she spent 200 on a property and he spends 100 and they own it 50/50 revenue may consider that she gave him a gift of 50.

hullaballoo

SlowBlowin wrote: »

I would have thought someone with better legal knowledge that me might be able to give some insight, maybe someone will.

My friend saw a solicitor the day before meeting her, she has based everything on how much she paid, he believes it should be based on a share of market value. He is seeing the solicitor again when he gets back (solicitor is on holiday).

I thought this is what the forum was for ?

Sorry if that came across as a bit sharp. I didn't mean it to be here but the point here is that general surmises on our part on the basis of small amounts of information about what could probably be properly described as an epic saga are next to useless for your purposes (or your friends.)

SlowBlowin

I did some searching, ended up on the Legal aid board, and it seems to me (no expert) when a partnership breaks down the settlement is based on the market value of the property. The "split" is variable, but the settlement is based on the market value, that's what he needed to know, hes arranged for a valuation.

Peregrinus

Obviously, the only thing the couple has to split is the land, and it's worth what it's worth, so the market value represents the amount that can be divided between them. If the value of their interest in the land is, say, 100, it doesn't matter if she contributed 200 - she can't get 200 back.

Having said that, when deciding how to split up the 100 they can take account of the contributions made by each of the parties. But they won't take account of her monetary contributions while ignoring the contributions he made improving the value of the land, or the return from it, by working on it.

SmartinMartin

Sounds like a right ©unt.

Mod
Please - language!

Mellor

SlowBlowin wrote: »

She now wants money, and has listed every living expense she incurred, including the loan payments for the land she made working as a waitress while my friend was working the land, building, digging ditches etc. This running total of things she paid for greatly exceeds the current value of the property, by several times.

What expenses is she listing?
Obviously, repayments are relevant. As in initial capital investment.

But if she's listing phone bill, food, rent, and all her other living expenses. How are they relevant. Money spent is gone. I'm sure he has just as many other expenses.

SlowBlowin

Peregrinus wrote: »

Obviously, the only thing the couple has to split is the land, and it's worth what it's worth, so the market value represents the amount that can be divided between them. If the value of their interest in the land is, say, 100, it doesn't matter if she contributed 200 - she can't get 200 back.

Having said that, when deciding how to split up the 100 they can take account of the contributions made by each of the parties. But they won't take account of her monetary contributions while ignoring the contributions he made improving the value of the land, or the return from it, by working on it.

Thanks for the reply. Thats the situation, she is claiming several times the property value.

SlowBlowin

Mellor wrote: »

What expenses is she listing?
Obviously, repayments are relevant. As in initial capital investment.

But if she's listing phone bill, food, rent, and all her other living expenses. How are they relevant. Money spent is gone. I'm sure he has just as many other expenses.

Yes she is listing all her expenses as well as repayments...

longgonesilver

Is she trying to claim all her take home pay while in the relationship?

Did your friend have any income or contribute financially during this time?

How long have they owned the land?

SlowBlowin

longgonesilver wrote: »

Is she trying to claim all her take home pay while in the relationship?

Did your friend have any income or contribute financially during this time?

How long have they owned the land?

Yes.

Yes, but hes self employed and took lots of time off to work on the property while she worked.

About 3 years.

Mr. Incognito

Look

It's a try on.

It's land. Hire a solicitor.

I doubt her expenses will stretch to a lawyer and it if does the two lawyers will be able to sort it out amicablly and quickly

SlowBlowin

Mr. Incognito wrote: »

Look

It's a try on.

It's land. Hire a solicitor.

I doubt her expenses will stretch to a lawyer and it if does the two lawyers will be able to sort it out amicablly and quickly

Yes, hes done all this, just wanted to confirm our own thoughts.

She can afford her solicitor, her new man is bankrolling her.

hullaballoo

Am I reading this correctly that she effectively has receipts for every expense and outlay for her whole relationship with your friend?

SlowBlowin

She has bank statements.

Victor

There is the option of having her buy him out.

SlowBlowin wrote: »

She has bank statements.

I don't think that means she is claiming for everything on those statements, she's just showing the amounts she paid towards the property.