Who gets house profit? - Talk About Marriage
Financial Problems in Marriage When financial times are tough, it adds to the stress we deal with on a daily basis. This section is for talking about how financial problems affect our relationships and ways to cope.

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post #1 of 37 (permalink) Old 03-04-2016, 12:34 PM Thread Starter
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Who gets house profit?

We need to sell the house because he doesn't want to pay the mortgage and I can't get my own for the house because my yearly salary is too low. When we bought the house he took out a home equity loan from his other house (46,000). We bought at 469,000 and its work about 410,00. Problem: When the house sells he wants the first 46,000 profit and we can split any remaining profit after lawyers and closing costs. That was scenario one put on the table. This is scenario two. He said he would split the first 20,000 if there is that profit. I would get 10,000, he would get 10,000. If it goes anywhere over 20,000 the remaining profit will go to him.

My name is on the deed and mortgage. I work full time and bring in 44,000 gross, while he brings in 120,000, big difference.

Is it legal for him to take that 46,000 out of the profit rather then splitting the entire profit?

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post #2 of 37 (permalink) Old 03-04-2016, 12:44 PM
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Re: Who gets house profit?

What does your lawyer say?


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post #3 of 37 (permalink) Old 03-04-2016, 01:03 PM
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Re: Who gets house profit?

personally I would not agree to either option. you should flat out get half of the profit, him getting "his" money back is not in your best interest. Since both of you are on the deed then both of you MUST sign off on any sale. Let the lawyer tell him where to stick his proposal.
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post #4 of 37 (permalink) Old 03-04-2016, 01:05 PM
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Re: Who gets house profit?

Laws vary by state and what assets each of you individually brought into the marriage. Keep in mind that what the law says isn't always the fair thing to do. IMO the fair thing to do is pay back his investment and then split the remaining profit. The reason is three fold. First if he never made the investment there wouldn't be any profit to split. Second if it was his money (i.e. his pre-marital asset) and he didn't gift it to you, then it remains his. Thirdly, he took a risk with the investment. Specifically, think about what you'd do if the house lost money and he couldn't recover that $46K investment. Would you feel obligated to pay back your share of it or would you expect it to be his loss?
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post #5 of 37 (permalink) Old 03-04-2016, 01:16 PM
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Re: Who gets house profit?

If there is any profit from selling the house, it's split 50/50, noone gets more than the other irregardless of who contributed more of the down payment or the monthly payments. Unfair if you ask me, but that's what happens.

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post #6 of 37 (permalink) Old 03-04-2016, 01:29 PM
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Re: Who gets house profit?

How long were your married and when did you buy the house? It matters. Is the other house separate property or is a portion of its value subject to equitable distribution, like the appreciation during marriage. Were marital funds used to service the home equity loan?

If his other house was indeed separate property, then a portion of the separate property was commingled with marital property. Whether it is still separate property or marital property is a complicated issue we can't answer.

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post #7 of 37 (permalink) Old 03-04-2016, 01:33 PM
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Re: Who gets house profit?

Separate property is defined under DRL 236 B(1)(d) as the following:
property acquired before the marriage
property acquired by bequest, devise, descent (i.e., an inheritance)
gifts to one spouse from anyone other than the other spouse. However, it is often disputed whether a gift was to one or both spouses, the latter making it marital property.
compensation for personal injury cases, but only that part which constitutes punitive damages and pain and suffering.
separate property acquired in exchange for separate property.
appreciation of separate property will be considered separate property if the non titled spouse did contribute towards the appreciation.
property designated as separate by a validly executed marital agreement as defined in DRL 236 B(3).

Equitable Distribution of Marital Property in a New York Divorce - Domestic Relations Law 236B DRL 236 B

If the house was bought for $469K and it's now worth $410K, that sounds like a loss of at least $59K. The $46K deposit was in the form of a loan so that's not profit but a liability. If that loan was based on equity in "his" house, that equity was wealth he had before the marriage (separate property). If you did not help earn that $46K equity in his former home and it was acquired when he was married to another or single, why would you believe you should receive any part of it? What was your marital status when your current home was acquired?
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post #8 of 37 (permalink) Old 03-04-2016, 01:34 PM
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Re: Who gets house profit?

If the $46K was considered an investment, then he is not asking to split the profits, he is asking to get his investment back and to then split the remaining profits.

But, if the money was commingled with the community assets, he is out of luck.


Have you two considered another angle?

Renting out the house?

Or letting you pay the mortgage payments and continue living there?
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post #9 of 37 (permalink) Old 03-04-2016, 01:45 PM
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Re: Who gets house profit?

Would you want the $46,000 back had it been YOUR premarital asset? I certainly would. I don't know the divorce laws, but I do know fair is fair. What you gain/earn during the marriage, no matter if one earns more than the other, should be split equally, but not any assets owned prior to the marriage.

Don't be greedy, the 46,000 he put down is his since the marriage has not worked out.
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post #10 of 37 (permalink) Old 03-05-2016, 06:49 AM
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Re: Who gets house profit?

Look up profit, there is none. Seems like the real question is who will write the check to pay the realtor commission and the bank?

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post #11 of 37 (permalink) Old 03-05-2016, 07:33 AM
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Re: Who gets house profit?

If letting him have that money will make getting out easier and it lets you have more of the things you want, then I would consider it but on your terms not his.

Like let him have the money up to the $46,000 you split the money after that, and as long as it is not one of his family heirlooms give him a list of things you want from the residence and so forth.

I don't know what your your full situation is to even know if the above will work.

Good luck



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post #12 of 37 (permalink) Old 03-08-2016, 10:56 AM Thread Starter
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Re: Who gets house profit?

His other house was acquired before the marriage which I also lived in and paid things like grocery bills, car loans, etc. The "newer" house was purchased 9 years ago, while we were married. The "newer" house has both of our names on the mortgage and deed. I am not on the deed, mortgage or home equity loan of "his" other house. He took the home equity loan out of "his" house he bought before we were married. The mortgage, deed and home equity loan are in HIS name only. We are still going through the divorce process. This is a big issue right now.
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post #13 of 37 (permalink) Old 03-08-2016, 10:58 AM Thread Starter
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Re: Who gets house profit?

He used the home equity loan as a down payment on our current home.
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post #14 of 37 (permalink) Old 03-08-2016, 11:16 AM Thread Starter
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Re: Who gets house profit?

I would love to stay in the house with my kids. Both of our names are on the mortgage and deed. But if his name comes off the mortgage, I will not be approved for another mortgage because my income is too low. Even though I would get some income on the house, enough to pay monthly mortgage, I still cant get approved for a mortgage.
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post #15 of 37 (permalink) Old 03-08-2016, 11:19 AM Thread Starter
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Re: Who gets house profit?

The lawyers arent any help. They are looking out for their pockets in this one. I have received absolutely no guidance on this matter.
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