Q: If equity from a sale is already deposited, can one party demand the other’s share?
Two unmarried parties buy a house together and split up. Both names are on the deed and all paperwork signed. They split up, but do not refinance to get one name removed. Three years later, the party living in the house starts the sale, completes it, and both sign off on papers saying that they split the equity 50/50. The money is deposited into their bank accounts. Can one party retroactively demand all of the other party’s equity be sent to them because they were the only one living there for three years? The party not in the house offered to sign off on refinancing multiple times in the past, but was always turned down.
A: Y'all are co-owners of the property and if one of the co-owners paid monies for the benefit of the property such that the other co-owner owes 1/2 reimbursement then one can seek reimbursement for that amount. As for your question of whether or not one owner may demand the equity share because one was exclusiviely living on the property the last 3 years, I would answer no, but it is more a situation of expenses paid and what agreements there were between the 2 co-owners to better determine each person's rights. To get a more definitive answer and to weigh whether or not it is worth the time and effort, I recommend that you sit down an attorney to discuss the specifics of your matter.
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