[BIC_BAWS]

Originally Posted by PeanutButter

Looking for some input on this situation please.

Lily bought a condo for $440,000
Lily put $70,000 down payment
Lily's mother added $20,000 for the down payment

Lily moved in with boyfriend (Mike) and is now common-law with him and has two children together.

Lily just sold the condo today for $749,000.

Lily and Mike refinanced and there is $521,000 currently left on the mortgage.

What would be a fair way to split the gains.

I was thinking $749,000-$521,000 = $228,000 left in cash.
Give Lily back $70,000 for down payment
Give back Lily's mom $20,000 for down payment

$228,000 - $70,000 - $20,000 = $138,000

Put $138,000 into Lily and Mike's Joint account.

Does that seem fair?


Lily likes my idea above, but Mike thinks all of the proceeds should be going into their joint account.

On a strictly mathematical standpoint and how I would do it if I sold my family home with my parents.

440K -> 749K is 1.7x
Lily's 70K -> 120K
Mom's 20K -> 34K
Bal -> 595K
Less: Mortgage #2: 521K
Joint Acc Bal: 74K

Of course this doesn't sound like an easy situation. Did Mike contribute to Lily's mortgage? Is she on title on his mortgage? Is he going to put a ring on it?