How do you divide the equity on a home when you are not married?
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How do you divide the equity on a home when you are not married?
My boyfriend and I bought a house together 6 years ago and we took out 3 loans. I have paid off 2 loans, for $16,000 and $20,000 by makeing triple payments. He has paid minimum monthly payments the past 6 years towards the last loan, for a total of $9000 in equity. I want to add that his income is 3x of mine, making it possible for him to pay more and we have disussed it but he is content making minimum payments. So now we are splitting up, how is the equity divided?
Asked on May 10, 2017 under Real Estate Law, Indiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
In the absence of an agreement to the contrary controlling how it will be split, equity is divided according to ownership interests: so if you each are equal co-owners, you get 50% each of the equity. His income is irrelevant--that does not affect his interest in the home or right to the proceeds. Also not relevant is that you paid more than he did: you did not have to, or could have entered into a written agreement with him that would have taken account of it. But without an agreement giving you more for your greater contribution, all that matters is that you are equal owners.
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