Calculating a buyout amount - how is it done?

[helpme9876]

What is the name of your state?What is the name of your state? Washington

Curious as to how a "buyout" is calculated. Here's my situation:

Bought a house in 1993 with my partner for $124,000

We pretty much shared in the down payment and all subsequent payments of the home.

She moved out in 1999 at which time the house was refinanced and the appraised value was $158,000.

She is claiming that because she lived here for 6 years and paid $600 month, that adds up to what her buyout is. How can that be when about $20 a month goes towards principle for the first few years? Our mortgage payment also included property taxes and insurance. Also, we had a lot of other debt that I took on when she left as my part in "buying her out".

I am just wondering if there is a calculator, or some other known way to calculate exactly (or close) what is owed the party moving on and out - after 6 more years, this has reared it's ugly head. I do plan on seeing an attorney, but have been looking online for some method of figuring out if we indeed figured things out pretty well, or if I do need to go back to the drawing board.....

If you need additional information, please let me know!

Any help is appreciated. Thanks!

If you had sold the house for $158K and paid off the mortgage principal balance, Each should be entitled to half of the gain, right?

[helpme9876]

Thanks for the response. Yes, if we had sold, that is what would have happened - as stated in my original post, we had numerous debts which I took the brunt amount for. The house was worth $158k, our loan amount was approximately $116k, so the equity was about $42k. I took on over $60k in debt to her $15k for other various debts built up during the relationship. Hopefully that is a bit more clear - I really want to know if there is a calculation that actually figures what a person's true buyout would be**************..

I'm no expert, and don't consider this legal advice, but having been thru this I don't think there is any formula - everything is negoitiable unless the judge decides for you.

I would make a list of the debts you took on against the other persons gain on the home and show them that they may actually owe you money, maybe that will shut them up.

[danno6925]

She seems to think that since she put up 600/month that she's entitled to ALL of it coming back to her?! She must not be in touch with reality, but she ought to get in touch with your attorney (which I hope you have by now).

If she was an owner of the property (meaning her name was on the deed as a tenant in common or as a joint owner when you bought it) then she is entitled to a share of the proceeds from the sale of the home. However, if portions of those proceeds went to repay debts she incurred and placed as liens or encumbrances against the title of the house, then she can't double-dip in the till. They get deducted from what she's owed in the end.

If she just put up money for the down payment and never put her name on anything (mortgage, deed, or note) she is then entitled to a polite phone call telling her to take a flying leap.

**NOTE**
If you would have had her file a quit-claim deed when you she moved out and you refinanced, then she would not be entitled to JACK! Consequently, if she WAS an owner, she should have to have signed off on the deed at or before settlement. If she didn't, the sale wasn't legal!