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