How Can I Handle Splitting Profits from a Jointly Owned House?

Question from Jack, How Can I Handle Splitting Profits from a Jointly Owned House?

Answer from AI:

If you and your ex-girlfriend bought a house together and are now facing issues regarding the division of profits from its sale, there are several legal considerations to keep in mind. Since you are the only one on the mortgage but both of you are on the deed, the situation can be complex. Here are some general guidelines and steps you might consider:

Understanding Joint Ownership

When two people are on the deed of a property, they typically own it as either joint tenants or tenants in common. This distinction can affect how profits are divided:

• Joint Tenants: Each person owns an equal share of the property, and if one person dies, the other automatically inherits the entire property.
• Tenants in Common: Each person owns a specific percentage of the property, which can be unequal and can be passed on to heirs.

Equitable Distribution

In many cases, courts aim for an equitable distribution of property, which means a fair division rather than an equal one. Factors that might be considered include:

• Initial contributions to the purchase price
• Payments made towards the mortgage
• Contributions to property taxes, maintenance, and improvements

Documenting Contributions

To support your case for a more favorable division of profits, gather documentation of your financial contributions:

1. Receipts for mortgage payments, property taxes, and utilities
2. Invoices and receipts for materials and labor for home improvements
3. Bank statements showing your financial contributions

Negotiation and Mediation

Before resorting to legal action, consider negotiating with your ex-girlfriend. Mediation can be a less adversarial way to reach an agreement. A neutral third party can help facilitate discussions and propose fair solutions.

Legal Action

If negotiation fails, you may need to seek legal action. Options include:

• Partition Action: A legal process where the court orders the sale of the property and divides the proceeds according to each party’s contributions.
• Accounting Action: A court can order an accounting of all expenses and contributions to determine a fair division of profits.

Consulting a Legal Professional

Given the complexity of property law and the potential for significant financial implications, it is advisable to consult with a real estate attorney. They can provide personalized advice based on your specific circumstances and jurisdiction.

Resources

For more information, you can refer to:

• Cornell Law School – Partition
• Nolo – Real Estate Law

Remember, while this information provides a general overview, it is not a substitute for professional legal advice. Always consult with a qualified attorney to understand your rights and options fully.