[makdan]

My (former) girlfriend and I are joint owners of a house in VA. I made a much larger down payment, but the title/deed does not specify unequal ownership. The relationship is now so unpleasant that I want to sell it, probably at a loss. How will the (losing) sale proceeds be split between us, assuming the following hypothetical amounts?

Purchase price: $500,000
Her total payments: $50,000, unspecified as to closing vs. down payment
My total payments: $150,000 down payment, $10,000 closing costs at purchase
Improvements: Her=$30,000
Other: I paid $4000 toward her half of the mortgage when she couldn't make the payments.

Sale price: $410,000
Mortgage balance: $290,000
Sales commission: $20,000
Net check to us: $100,000

If, after paying off the mortgage and the sales commission, we receive a check for $100,000, how will it be split?

The best case answer might be a formula for distributing the proceeds, or a link or reference to a formula. Second best would be a general discussion that mentions how each of the variables specified above is typically handled. I need to know

1. whether we take equal losses, or losses proportional to our expenditures
2. If losses are proportional, does the timing of our payments matter, i.e. are payments converted to present value?
3. how to handle her $50,000 payment: does it = $5000 for her half of the purchasing closing costs, with the rest applied to a down payment?
4. whether her improvements, about half for new windows/doors, and half for new appliances, "count" like a down payment does
5. whether she will have to pay me back for the $4000 mortgage payments I made for her

[excon]

Hello mak:

Out of the sale price, everybody gets back what they put in, and the rest is split equally.

excon

[Fr_Chuck]

No, sorry unless you have a contract about splitting this, or unless you had the deed listed to show percents of ownership.

At this point you both own equal shares of the home, and you will split the check evenly unless she agrees otherwise.

Or what will happen is the check will have to be held in a escrow account while the two of you fight over it in civil court.

But no you were not making "mortgage payments" for her, you were making your and her mortgage payments since you name is on the mortgage payment also, and it is not "her bill" and "your bill" unless you had a partnership contract drew up.
It will basically be looked at as if you were married, and as your girlfirend, you shared bills and helped each other.

So if you get a 100,000 dollar check, you get 50,000 and she gets 50,000 and you walk away with a good lesson learned about love and house buying. If she will agree to something else, great, but if not, you will have to fight it out in court. Normally there will be one check issued to both of you, If you fight over separate checks for closing, remember if you both don't agree, this is prolong the closing and can actually allow the deal to fall though,

What is she wanting?

[excon]

Hello again, mak:

My suggestion is how the proceeds SHOULD be split. The Padre is right about how the proceeds will probably BE split, if you can't agree.

excon

[makdan]

No, sorry unless you have a contract about splitting this, or unless you had the deed listed to show percents of ownership.

At this point you both own equal shares of the home, and you will split the check evenly unless she agrees otherwise.

What is she wanting ??

We haven't specifically discussed selling the house or division of proceeds recently. It was my (verbal) understanding going into the deal that our investments would be equalized after she sold her other house, by her paying for improvements to the house (appliances, new windows and doors, new roof, landscaping) and cash to me. She made the first 2 improvements and paid me some cash, but I still have about twice as much invested as she does. When I have complained, she has repeatedly stated that when we sell the house, a judge would hear the case and give us shares proportional to our respective investments. More recently she has given a smirky smile and sort of whispered that "I own half the house," which causes me concern that she might want a full half.

My question today is a follow-up to my question yesterday about "removing her son when joint owner objects", which you answered.

She has tried to essentially blackmail me into paying for roof and landscaping, rather than her paying-as she originally promised, by saying that I will lose more than she does (because I have proportionally more invested) if we sell at a loss without improving those items. She has also asked me a for $50k interest-free loan from me, and this after she netted about $230k after selling her house right after we bought one together.