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Common Law Issues The law regarding common law relationships is different than in cases of divorce. Discuss the issues that affect unmarried couples here.

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Old 10-29-2008, 07:41 PM
JohnJohn JohnJohn is offline
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Default dividing a house

Hi there, I will try to be brief but thorough. I met a lady three years ago, she had just bought a lot with her savings $24000. We were living at my apt at the time. We built a home, my contribution was quite a lot including the materials(from my work) and installation of the entire exterior of the house cost aprox $14000. Installation or all flooring and doors, drywall ect. There is not a spot in this house I did not build or help build. All the materials were financed. Once we moved in I transfered a set amount per week. The problem is with my poor credit rating the entire project, bills, payments, are in her name. As it stands the house cost $135000 to build and evaluated at $192000. I have been offered a "gift" of $8000. to walk away. Good deal or bad deal. thanks for any info.
Old 10-29-2008, 08:39 PM
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Need more info to say, how much is the mortgage on the home? You appear to have an enrichment claim due to your labour, but the fact that the debt is all held by her offsets that, how much, who's to say.
Old 10-30-2008, 07:37 AM
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If you assume that the mortgage is the full $135,000, and the home is appraised @ $192,000, that's already $57,000 equity for having done most of the work yourself and covering allot of the costs through your work. I would claim an equal split in the equity using the undue hardship clause, and I would clearly point out, in point form, the actual cost for materials and labour, and then what the cost would have been if you did not get the materials through your work, and what the labour would have been if you had not helped. The thought behind this being that she may claim that her contribution outweighs your labour etc. But if you can show how much you saved in the build by using your employer and your labour it will go a long way to show that an equal split is indeed a fair assessment. You are looking at $28,500 for your share of the equity.

Going back to the figures, if the mortgage is $135,000 the split on the debt is $67,500. If you say it is valued at $192,000 and say you could sell it at that, then the split in the sale is $96,000, less your share of the mortgage debt leaves the aforementioned $28,500. So the $8,000 to walk away is WAYYYY to low in my opinion.
Think about it, she provides the land at a cost of $24,000 and is left with a home valued @ $192,000 a pretty sweet investment for a low capital and no labour.
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