Split home equity with unequal down payments

One partner paid a larger deposit. Compare returning that money first with dividing equity by contribution percentages.

Compare three equity splits after unequal down payments

Start with the deposit amount and any purchase agreement

Check who paid, where the money came from and what was agreed at purchase. A transfer from a family member might have been a gift or a loan; the bank entry alone may not answer that question. For unmarried co-owners, read the title and co-ownership documents alongside the payment records.

Compare the same deposit under three methods

The table uses $200,000 net equity and a $50,000 deposit from A, with no contribution from B. It holds the property figures constant so the effect of the chosen method is visible.

Equity split comparison for a $50,000 deposit

Illustration: $200,000 net equity, $50,000 contributed by A and $0 by B. No additional credits or costs.

Selected methodPartner APartner B
Equal division, no separate deposit credit$100,000$100,000
Return the deposit, then divide the rest equally$125,000$75,000
Divide by the deposit contribution ratio only$200,000$0

A deposit-only ratio ignores any other contributions. These scenarios demonstrate the methods; they do not establish entitlement.

Understand what returning the deposit first does

Returning A’s $50,000 leaves $150,000 to divide. With an equal remainder, A receives $125,000 and B $75,000. If A keeps the house, the proposed payment to B is $75,000 before other adjustments.

This returns the deposit’s original amount. It does not separately calculate growth on that contribution. The method also needs enough equity to cover all selected credits. If it cannot, review deposit credits and negative equity.

Both partners can have a deposit to return. If A contributed $50,000 and B $20,000, returning those amounts from $200,000 leaves $130,000. Dividing that remainder equally gives A $115,000 and B $85,000. This is not the same as dividing all equity in a 50:20 contribution ratio.

Check what a deposit-only ratio leaves out

A $50,000-to-zero ratio gives A all the equity. That calculation excludes any later principal repayments or other contributions unless you include them expressly. It should not be treated as a default ownership rule.

Before combining amounts, check how unequal mortgage payments affect an equity split. Record each eligible contribution once, state the period covered and explain why those amounts were selected.

Compare equity splits for your down payments

Calculate your home equity split

Start with the example amounts or enter your own. Partner A keeps the home and buys out Partner B.

Home figures

Use one currency for every amount. Changing it does not convert your figures.

Other loans secured on the home

Include any additional secured borrowing, but do not enter the mortgage twice.

Use the home value and loan balances for the same date.

Proposed split

Choose a percentage for each partner. This is a scenario, not a decision about legal ownership.

Costs and selling comparison

These start at zero. Enter only the costs you want this scenario to include.

Selling is a separate comparison. Its costs do not reduce the buyout payment.

Borrowing estimate

Estimate the new loan for Partner A. The 6% rate and 30-year term are examples, not a mortgage offer.

Do not count refinance costs again if you already deducted them from equity.

Contribute this scenario to research, optional

You can share broad ranges from this calculation to help us study asset division. Exact amounts stay in your browser. We store separate counts for each range and currency, without an account ID or a copy of your scenario. These counts may be retained indefinitely and used in future articles. They cannot be removed individually after submission. Use your own figures, not the example.