Mortgage muddle
Question
I'm splitting up from my girlfriend who has a large amount of debt. I've tried to help her sort things out in the past but she has just run up more debt on credit cards. We live together and want to sell the house, but if we sell how will the profit be divided? I've been paying the largest portion of the mortgage.
Answer
Firstly, the debts that your girlfriend has built up on her credit card are hers and you cannot be held liable for them.
As she has been contributing to the mortgage, she will have a beneficial interest (financial interest) in the property. The size of her beneficial interest will be in proportion to the amount she has paid. So, for example, if your initial contribution was 20% and hers was 0%, you immediately have a share of that 20%.
When it comes to ongoing mortgage payments, if you were paying 80% and she 20%, you would have a bigger interest than her. If you decide to sell the property, the sum remaining once the mortgage is paid is divided between you based on the percentage each of you paid.
It's better to try and sort out this division of profit amicably, as getting lawyers and courts involved can be very costly.
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Question answered by CAB
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