Post # 91
LilliV : the other scenarios I was talking about is what if OP loses her job or decides to stay home and pays less/nothing towards mortgage – that means she didn’t contribute equally to mortgage, so should there be a clause that she doesn’t get 50% equity beyond the $250K. If so, what percentage should that be? What if husband strikes it rich and wants to pay off rest of mortgage right away, should there be a clause that he gets the rest of the equity abover $250k? Or vice versa? And there are probably other scenarios that I can’t even think about right now.
And I do agree that most people don’t get divorced based on the housing market (although some people may keep the property longer or even live together until the market goes up again. Not an ideal situation of course). But honestly this is why she should protect herself. If they do get divorced, she is handing him $125k of her pre-marital saved money unless she has the postnup
Post # 92
Hindsight is a fine thing but you really should have sorted this before marriage to avoid these hurt feelings.
I think you should just keep the savings separate or if you must buy a house – draw up a % based loan arrangement whereby you own more (and pay more) of the house. Eg 30/70 or whatever equates to how much he can contribute. Then you pay the higher % costs (upfront and ongoing) and you take a higher % in the event of divorce. I think it is unfair for you to put in the $250000 and expect that amount back no matter what.
Post # 93
supertrooper0101 : this. We are looking in t.o, North York, etc, 700k is definitely on the low side.
Post # 94
lifeisbeeutiful : Hmm… TO. It’s not likely you are in that much danger of having a huge depreciation in your property, particularly if you buy in a central area like NY. It’s tough, I can see why you want to put so much down. But you may be better off decreasing the amount you put down, taking your money and investing it. Especially with interest rates being so low. There isn’t as much of an urgency to minimize your mortgage amount cause you’ll probably make more investing it then you’ll save in mortgage interest payments.
Post # 95
lifeisbeeutiful : Agree with you totally. My partner and I have a similar agreement as he was able to not only put a large downpayment on our home, he was able to pay off the mortgage with an inheritance. Based on his contributions against the purchase price of the house….he owns 70% of our home. If we sell, he gets 70% of the sale. The benefits to me were huge…My disposable income increased significantly without that huge biweekly contibution to the mortgage. He chose to invest that money into an easier life for the whole family….why on earth would I feel entitled to any more?
Its fair, in fact this approach is actually more fair to you than what you are proposing in your post nup.
Post # 96
kc4thbee : good point! I like your agreement. Thank you.
beantime : good point about investing more of it. Thank you.
Post # 97
lifeisbeeutiful : What jurisdiction are you in?
If you are Australian, speak to a solicitor about a binding financial agreement pursuant to s79 of the Family Law Act.
You can draw up a financial agreement AFTER you get married, it’s not considered a ‘post nupt’.
Even if you never have one, you would still be protected under the Act due to the assets test that would assess both your contributions to the home and dependents.
Finances should never be a touchy subject in marriage. You are both obligated to make a full and frank disclosure.
Post # 98
smallbee : I think anything after the marriage remains 50/50. If she stays home she is still working and providing a value to their family – just because it doesn’t have a paycheck doesn’t mean she’s working less. Her support at home will make it easier for him to continue to grow his career. That’s a team effort that I don’t think should be nickle and dimed.
Post # 99
zoebunbun : im Canada. We refer to postnups as marriage contracts and I agree that money shouldn’t be a touchy subject in a marriage. Conversations about finances should be freely discussed and in preparing for the worst but hoping for the best types of cases.
LilliV : good points.
Thank you everyone for all your opinions and tips.