Legal Question in Real Estate Law in Virginia
division of funds
upon financing our home 2years ago, i advised my partner that i would be taking money from my 401k to make my portion of the down payment. he advised me not to do this as he had plenty from the proprty he just sold. we basicly split the 5000.00 it took to hold the lot. when asked how the deed was to be written, we agreed 50/50...the deed actually reads jointly. now, things have not worked out and my partner wants to sell, i am ok with this, except he does not want to spilt the profit with me, saying he can take me to court, auction the house and get 95% of the profit since he has the most cash invested. i later used my 401k money to buy a rental property since real estate is much more profitable than 401k. my point is, had he told me he expected more profit from the house at deed time, i would have insisted he take my portion, then take a equity loan out to buy my rental if i still wanted it. his councel says he has a good case as he has all the rcpts showing his downpayment. we have both made about the same amount of improvements to the house. i have, however, paid the mortage twice and the taxes twice while he was unemployeed. my expectation was for each of us to get our down, and split the rest. what say u.....
1 Answer from Attorneys
Re: division of funds
I say no, i.e., that you can get back from the proceeds from the sale of the property only what is reasonably proportionate to what you actually contributed to the purchase price, maintenance(including mortgage payments and taxes) and improvements to the property and which you can actually prove by a preponderance of the evidence.
And whatever profits which you may realize from the sale of the property should be in proportion to your actual contributions referenced above.
What you
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
