Ok - the basics.
Common-law couple.
Two people have a joint LOC. Person A takes out $10,000, on agreement by both parties that that money is solely for the use of person A and that person A will solely repay/be responsible for that amount.
Person A and Person B take out $15,000 from the same LOC. They agree that they are each responsible for half of paying off that $15,000.
They agree that because person A is solely responsible for the first $10,000 that they will pay the insurance and interest on that $10,000 themselves, splitting the interest and insurance on the $15,000 between them.
Each month 100% of the interest and insurance is taken from a joint account that they each pay 50% into.
I know how to figure out who owes what amount in terms of their percentage of interest and insurance. But for the life of me can't figure out where Person A puts their share of the interest and insurance. Is it 100% back into the joint account? half into the joint and half to person B? or all to person B?
Please help with explanations - happy to answers questions if I've not explained this well.
Thanks so much!
Common-law couple.
Two people have a joint LOC. Person A takes out $10,000, on agreement by both parties that that money is solely for the use of person A and that person A will solely repay/be responsible for that amount.
Person A and Person B take out $15,000 from the same LOC. They agree that they are each responsible for half of paying off that $15,000.
They agree that because person A is solely responsible for the first $10,000 that they will pay the insurance and interest on that $10,000 themselves, splitting the interest and insurance on the $15,000 between them.
Each month 100% of the interest and insurance is taken from a joint account that they each pay 50% into.
I know how to figure out who owes what amount in terms of their percentage of interest and insurance. But for the life of me can't figure out where Person A puts their share of the interest and insurance. Is it 100% back into the joint account? half into the joint and half to person B? or all to person B?
Please help with explanations - happy to answers questions if I've not explained this well.
Thanks so much!
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