When two people, either unmarried or under a separation of assets regime, purchase a property with a 50/50 split, each party’s contribution normally matches their ownership percentage. Both must also equally share the expenses related to the property, such as insurance, mortgage payments, etc. However, in practice, this doesn’t always happen. It’s common for one co-owner to pay more than 50% of the purchase price. Or to cover property-related expenses on his/her own. In this week’s article, we analyse how these situations can lead to a claim against an ex-partner, based on the right to credit and reimbursement as established by the Spanish Civil Code.
Co-ownership of property when one party contributes more than 50%.
Let’s consider an example. John and Mary (British and married under a separation of assets regime) decide to purchase a property in Spain for €300,000. The property gets registered in both names, but the funds used for the purchase come solely from Mary. In the years following the purchase, Mary also covers property maintenance costs, home insurance, etc. In a scenario like this, can Mary claim compensation from John for the extra money she paid?
Money contributed towards the purchase. Reimbursement right.
When one party contributes more than 50% towards the purchase, he/she is entitled to claim the difference from the other co-owner. The legal basis for this claim is found in article 1158 of the Civil Code:
“The person who pays on behalf of another may claim from the debtor what they have paid, unless the payment was made against the debtor’s express will. In this case, the payer may only claim from the debtor the amount that benefited them.”
In this case, Mary could claim half of the amount, i.e., €150,000, from John.
Payment of debts and expenses. Credit right.
What about maintenance expenses, home insurance, etc.? Can the co-owner who didn’t pay be held accountable? Yes. When two people co-own a property, they are required to contribute to its upkeep according to their ownership percentage. If this doesn’t happen, the co-owner who covers these debts/expenses acquires a credit right against the other.
This is established in Article 1145 of the Civil Code, which states: “Payment made by one of the joint debtors extinguishes the obligation. The payer may only claim from the other debtors the share corresponding to each, along with interest on the advance.”
What happens if the property has a mortgage? Can you still claim?.
Yes, a mortgage loan works in a similar way. If both co-owners are jointly liable for the mortgage debt, each is responsible for the entire debt to the bank. However, in the internal relationship between the co-owners, unless otherwise agreed, the debt is split evenly. This means each must pay 50% of the mortgage instalments. If one co-owner has paid more than 50%, he/she can claim from the other under art. 1145 of the Civil Code.
Conclusions.
A claim against an ex-partner is possible when one party has contributed more than 50% towards the purchase of a property or has exclusively covered certain expenses. At White-Baos Abogados, we specialize in reimbursement and credit claims. If this is your situation, don’t hesitate to contact us.
The information provided in this article is not intended to be legal advice but rather to convey information related to legal issues.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
E-mail: info@white-baos.com
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