Quote:
Originally Posted by PeanutButter
This one is actually a close friend. I'm known in my circle of friends as the finance/investment guy. For some strange reason, people think my opinion matters (they're crazy, I know). So people always come to for advice. It's my cross to bear... and in turn RS' cross to bear because I don't know what I'm doing half the time and need help. RS is my therapist, life coach, consigliere, etc.
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I too get asked these life changing questions. Who I then blast to every other CPA I know. I guess the tea is interesting.
Legally in your situation, I think because of kids, it may be considered a marital home aka all proceeds into joint account, I don't even think the mom will get back the $20K DP.
If it's common-law without kids, it'd be pro-rated by the years you lived on your own vs common-law. Then the new gains from all assets between Lily and Mike are split.
But neither of this apply to them, so what's closest to fair without a complex calculation is what you said below.
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.