My situation - Please help

[tmickeyd]

Hi there,
My girlfriend moved in with me in my condo in May/06. I sold that condo and we purchased a home together on Dec.15/06. She put down $10,000 and i put down $70,000 for a total of $80,000. We had no cohabitant agreement in place. Now we are separating - she is moving out and i will stay in the house. How much do I need to give her for her share of the home? We have lived together for less than 3 years so we are not common law. Through bank records i can prove that she only put down 10,000 (everything was done through my bank account). We have separate bank accounts and i have paid all bills since we have lived together. She wants her 10,000 back half of the home's appreciation during dec/06 to current. How fair is that since i put down 70,000/80,000 and i have paid all the bills and done majority of the housework? Can someone PLEASE give me advise.

[FL_Needs_To_Change]

Basically since there is no issue of Cl, and void any agreement to the contrary she basically can apply to get back the amount she put into the home. As a co-investor, the courts may rule her entitled to half the equity that the home had incurred.
The logic being that no one person offers such large amount in a "marriage like" relationship to walk away with nothing. The fact that the relationship did not last the 3 year requirement is a technicality that she may be able to over come.

With a good lawyer I wouldn't doubt that she could easily show that her intentions were that this home was an investment in her future and as such she would be entitled to a split. But on the flip side, looking from the common law perspective she isn't entitled to asset splitting. This is a very tricky case given the high amount she provided for the down payment and the short duration of the co-habitation.
I would seek help from a lawyer. Some times you can find one that will offer 30 minutes to an hour of consult free or for a minimum fee.
It's worth a

[tmickeyd]

we have an agreement when i will pay her the 10,000 downpayment plus half of the APPREICATED value of the house since we purchased it. I understand this is bascially a cohabitation agreement. I have drafted an agreement between us will my agreement hold up in court or does it have to be drafted by a lawyer. She does not want to FORMALLY separate yet so I would see this agreement was a cohabitation agree, are I correct?

[Maggie82]

Oh, and don't forget to double check the common-law rules. It used to be a 3-year period during which you had to live together to be considered common-law, but I believe it's changed to 1-year. I'm not 100% sure, but 99%. So please double-check.

[tmickeyd]

we just reached an agreement....I am giving her back her $10,000 deposit plus $5,000 and i'm also taking over a joint line of credit with a balance of $6,000. So after giving her the $15,000 and changing the mortgage and taking her off the title to the home, do you think I still need a separation agreement? I was quoted $950 by a lawyer for a seperation agreement is that a fair price? Thanks.

[standing on the sidelines]

as long as you two are agreeing with it an make sure you mark on any check you give her that the 10,000 is her final share in the interest of the house or something like that. Word it so it makes sense to anyone that she accepted it as a a full and final buyout of her interest in the property.

Why get lawyers involve if you do not have to. Keep the money for yourselves.