"Spliting" the house


#1

So, lets say on a 150K house, paid 50K as a down payment from an inheritance trust fund at start of marriage. 15 years pass. Couple then separates. House now worth $125k Have ~25k in equity & 100K due on the note, have taken out about $25k in equity for house repairs/car/etc over the life of the loan.

The person that put down the money does not want the house, the other party is interested in keeping the house. Does the person that put down the $50k for the down payment have claim over half the equity, or claim for more, or claim for 50K &?


#2

The down payment for the house would likely be considered a gift to the marriage. One half the amount equity present in the home at the date of separation is the amount the spouse keeping the home should pay to the other spouse to “buy-out” their share.