Expert: Jessica Bryan - 6/17/2010

Question
Hi Jessica,
I am in somewhat of a bind. I bought a house a year ago with my fiance. I put down $10,000 for a downpayment and he put around $23,000. Both of our names are on the mortgage and both of our names are on the loan (as a side note, both of our names are on the bank account that the mortgage comes out of). About 2 months after we closed on the house, we ended our relationship. Ever since then, I have been living with family because that $10,000 was all the money I had saved up. Now here is the problem. When I moved out, I did not make any mortgage or insurance payments on the house. I made sure at all times that he was making payments. He really wants to keep the house since we fell in love with it from the start however he does not have $10,000 to buy me out of my half. I am ready to move on with everything but we need a little advise on how to handle the situation. He is telling me that since I have not made any mortgage payments, that he owes me no money and the house should be his only. I'm not sure how this works out. Can you help me?

Answer
Hello;
The responsibility to share in the payments was an understanding between the two of you but unless there was some sort of a contract that identified what and how much you were to contribute, then by moving out you really left your ex-fiance with the responsibility.  He makes a good point that you didn't make any payments which may have actually amounted to the $10,000.  However, all of this begs the question on how you took title and what interest you have in the home at this point or when it sells.  If your ex cannot afford to buy you out then you might need to visit an attorney to spell out your financial responsibility and/compensation or interest in the home.  The easiest thing would be for him to obtain a small equity loan to buy out your interest and have you taken off of title. Even though he might feel that he owes you nothing, by taking sole ownership he also will profit if and when the home appreciates in value and when he decides to sell it.

Best wishes,
Jessica Bryan