Joint ownership issue

[greendragon]

What is the name of your state (only U.S. law)? Indiana
My ex girlfriend and I purchased a home about 3 years ago. Both of our names are on the deed. WE recently broke up and she moved out and now has her own residence. We each put down some money for the house when we purchased it but I am the one that has made all the mortgage payments since. She has paid the utilities up until now but those don’t amount to much. The monthly mortgage payment is around $1300.00 it’s an ARM. I am willing to reimburse her for all the money she has put down for the house and all the money she spent on improving the house. But she thinks she is entitled to some of the equity. The house has appraised for $260,000 and the note is for $172,000. She put down $13,000 at closing and I put down $16,000 at closing. She seems to think that she should get half of the equity that the house has appraised for. What should I do?

[FlyingRon]

It's going to be sticky. If the house appreciated in value she would seem entitled to more than just being reimbursed for what she spent. Further, if you lived as if you were married, there are other things she's going to argue she contributed than just what checks are written.

How much money is in dispute (how much you think she should get versus how much she thinks she should get)

[greendragon]

She wants $10,000 over the amount she has contributed.

[greendragon]

I dont think she should get anything except the money she put into it. I am the one that has paid all the mortgage for the past 3 years.

[FlyingRon]

The mortgage is just one part of the contribution to the house. She put up a substantial down payment, money towards maintenance. She is entitled to share in the appreciation.
Whether that amount is $10,000 or not can't be answered based on the information provided.

Frankly, regardless of WHO paid what, she is 50% owner, so it is incumbent on you to show why she should not be entitled to 50% of the sales proceeds. So far you've not made any sort of case.

[greendragon]

So am I to assume that the amount I have paid toward the mortgage will not be taken into consideration if we go to court over this?

[FlyingRon]

I didn't say that. I said that there are more factors than just who paid the mortgage. The presumption is that the proceeds should be split based on ownership. If you want to argue that you contributed more than her, then you will have to provide a preponderance of evidence to support that. Her contribution towards down payments, repairs, capital improvements will be used to counter your mortgage payments. There may even be non-monetary issues that crop up.

Why don't you come up with a fair estimation of how much you each have contributed and split the appreciation value between based on that and see if she will accept it?

[tranquility]

In a partition lawsuit, the court will generally determine percentage ownership based on deed and contributions to equity-type things. Improvements, the principal paid on the mortgage and other things like that. There is then a division of the profits based on that percentage.

Then, the court will use the ownership percentage to determine responsibility for upkeep and costs. Repairs, insurance and the interest on the mortgage along with other things like that and then give compensation for only the amount actually spent (reduced by ownership responsibilities) without appreciation by the increase in value on the property for that amount. Some states don't give compensation for interest on the mortgage or other upkeep and I don't know the specific law in your state.

Partition lawsuits (going to court to split and sell the property) are expensive and take a long time. Shop it around to real estate attorneys before you take a hard stance with the ex. See how much you stand to get from the sale and how much you will have to pay the attorney first. In neither case do I suspect you wil be happy.