I refinanced my primary property to afford ($37,000) the purchase of a home in 2005 for myself, my boyfriend and my newborn son. My boyfriend and I had a verbal financial agreement that he would pay the mortgage plus utilities and I would pay for all costs pertaining to (now) the two children (food, education, clothing, extracurricular activities, vacations etc). Taxes were filed separately as we were never married. He claimed the property on his tax returns as well as 1 dependent child. We separated last August (never married) and now he wants 50% of the equity. Currently, we split the mortgage payment and I continue to pay all expenses for the children.
I would like the equity in the home to be distributed after first receiving the initial 50% of the $37,000 investment and the remainder to be divided equally between the two of them. What's fair and equitable?