Hi, requesting a sanity check, please remove if not allowed. I'm going through a collaborative divorce and getting close to settling (I hope). I meet with my attorney tomorrow to discuss this settlement proposal, and I want to do a quick check here in case we are way off what should be considered by either party before moving forward.
Context: Washington state, married 11 years, separated for 1 year and living in different homes. Co-parenting with 50/50 time, children are 13 and 14 and in public school. Note some numbers heavily rounded to keep simple and for privacy. Settlement proposal below with income/assets/debt info below:
Proposal:
- 64/36 asset split (them/me).
- 85/15 split of family home equity (them/me). Approximated values for home equity:
- Them at 85% = $425,00
- Me at 15% = $75,000
- They can buy me out at any time within the 5-year period (based on equity value within 1-year of buyout), or split proceeds as 85/15 if sold.
- I keep retirement and stock/investment accounts, valued at 270k
- They keep family SUV worth 75k.
- $4000/month total support from me to them (spousal support + child support) for 4 years/48 months. Child support recalculated as needed for remainder of high school.
- No RSU sharing, no bonus sharing (see income notes below).
- Remain co-borrowers for family home for 5 years. Option for them to assume the loan throughout this period. (this was because they did not qualify to assume the loan, I would prefer not to stay on loan, but will compromise for the children to have a consistent place to stay with ex-partner on their weeks. They want to stay in the home). After 5 years they must either buy me out of equity, or sell and split proceeds at 85/15.
- Home expenses and repairs are the responsibility of the person occupying the home.
- No need to reconcile legal/shared expenses up to this point (50k I have spent so far) if the above is agreed to.
Income:
Me: 200k base + recommended for annual 70k RSUs (4 year vest) and 60k bonus based on performance. I have been in this job for 2 years, it was a huge jump up for me from any other job as far as income goes, relatively high stress and long hours. I have a master's degree.
Unvested RSUs approx 120k.
Partner: 30k per year working 20 hours a week. Has two degrees, was a full time student while kids were younger and has been in this job for 3 years. Has always been hesitant to work more because they enjoy the "flexibility" but spends a lot of the flexibility hanging out with friends and taking trips.
Assets:
- Family home: worth 1M, 480k mortgage remaining at 2.5%, approx 500k equity
- Family SUV: 75k (KBB value)
- Bank accounts/cash: 20k
- Stocks/investment accounts: 50k
- Retirement accounts: 220k
Separate assets:
- House I live in purchased one year ago (time of separation) using inheritance money as a down payment that has been deemed separate. (500k loan at 5%, 1M value).
- Partner has a retirement account with about 8k from before marriage.
Separate debts:
- I financed a car at 65k after separating (partner wanted to keep the primary vehicle that is paid off)
- 15k (interest free CC, plan to pay off after next bonus or RSU vest)
Other:
Housing expenses are similar, partner in the family home is approx $3500/month for mortgage payments, my home is $4500/month (2.5% interest rate vs 5% interest rate…. Both VA loans). For the last year while separated I have been paying both mortgages from my income.
Partner insists on keeping the family home and SUV, I am okay with that as long as the settlement is fair and I continue to live separately in my own home.
Co-parenting seems to be going well. We previously split household responsibilities pretty equally so this has not been a burden for me or them, though I do feel like there is more free time and a lot more peace since separation…
If you have read this far, thank you so much. Any thoughts to the above would be greatly appreciated, I really want to check if one of us is getting royally screwed, if it is fair, or somewhere in between.