If parties are 50/50 owners on investment, property, are both parties responsible for the mortgage regardless of who occupies the home?

UPDATED: Sep 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 30, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If parties are 50/50 owners on investment, property, are both parties responsible for the mortgage regardless of who occupies the home?

Parents and daughter both invested equal amounts into a home. The daughter lived in it and paid the mortgage, maintenance and taxes 100% for 5.5 years. It is time to sell and the parent now want 50% of net profits. Is this fair if the daughter paid down the mortgage, put in sweat equity and more? If these people are true 50/50 investors, shouldn’t they both be responsible for the costs associated?

Asked on June 27, 2016 under Real Estate Law, Colorado


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Investors can apportion the costs, time/effort, and responsibilities however they like, so the law does not presume that they will split these things evenly. Had parent and daughter entered into an agreement whereby the daughter would receive more of the proceeds or profits in exchange for paying the mortgage, etc., that agreement would be enforceable; however, without such an agreement, if they are 50-50 owners, they will each get 50% of the profit. That is especially so if the daughter, not the parent, lived in the property: her payments, etc. would likely be taken to be her "rent" for living there, and since she lived there, she received value for her contributions--a court would not find anything inequitable or inappropriate about the person living there paying the mortgage or putting in sweat equity.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption