Mdelgado Posts: 2, Reputation: 1 New Member #1 Dec 18, 2006, 11:24 AM
How to divide Proceeds
My question involves my mother's recent death and the proceeds. Me and 2 other sisters paid her bills until probate was finished. We also sold her property and divided 3 ways but did not subtract the monies we each paid in for her bills. She also had a car that we sold for \$5,000 and I actually bought it. So my questions is. Wouldn't we take all her expenses we each incurred (each paid different amounts-i.e. mine was 3,000, 2nd sister-2,600 and last sister was 350.00) and add up and divide 3 ways and we would each be responsible for that amount. Total being \$5,950.00 divded by 3= 1,983.00 each. Now since I cought the car I would owe each sister \$5,000 divided by 3= 1,667.00.
I paid in \$3,00 for the bills which is \$1,017.00 too much. My other sister paid in \$2,600.00 which is 617.00 too much. My last sister only paid in \$350.00 so she would actually owe \$1,633.00. So if am to pay each sister 1,667.00 wouldn't I just pay out my one sister(2nd one) the \$1667.00 and take 617.00 from the 3rd sister's amount so she could break even and then also from my 3rd sister take 1,017.00 to pay me back (instead of sending her money for the car) so in the end I would send 2nd sister \$2,284.00 (\$1,667.00 + 617.00 (owed to her)) and third sister only \$33.00 (because I kept \$1,017.00 from the \$1,667.00 proceeds of sell of car and \$617.00 to my 2nd sister leaving a balnce of \$33.00 to pay out.
Then in the end we would have all paid in the \$1,983.00 each of my Mom's total bills.
My husband said I am doing this wrong, but it makes perfect sense to me. Just want to make sure to be fair to all. Thanks
 ScottGem Posts: 64,966, Reputation: 6056 Computer Expert and Renaissance Man #2 Dec 18, 2006, 11:45 AM
What you should do is add up the total cash proceeds (including the sale of the car) for the estate. From that total, each sibling is reimbursed their out of pocket expenses as the expenses in settling the estate come off the top.

Whatever is left over is then divided into 3 equal shares.
 Mdelgado Posts: 2, Reputation: 1 New Member #3 Dec 18, 2006, 11:54 AM
The total of proceeds is only \$5,000 (car) as everything else was already divided. Which our out of pocket expenses exceed that amount as I paid 3,000-next paid 2,600 and the third paid 350.00. So how would we recoup the money owed to us since we did not pay in equally?
Thanks
 ScottGem Posts: 64,966, Reputation: 6056 Computer Expert and Renaissance Man #4 Dec 18, 2006, 11:58 AM
No, You have to go back, even if other funds were already distributed and add it all up. Otherwise all bets are off and you accepted the settlement so your rights to reimbursement are gone.