Opinion ID: 2106807
Heading Depth: 1
Heading Rank: 1

Heading: Initial Contributions Towards Purchase of Jointly Owned Properties.

Text: The issue of a proper accounting for the down payment made by defendant in purchasing each parcel of real estate is confused by the parties' failure to differentiate between a joint tenancy and a tenancy in common. The pleadings, the pretrial memoranda, and the exhibits accurately reflect that the Scarborough property was held in a joint tenancy and the Standish property was held in a tenancy in common. Throughout the trial, however, the parties used the loose phrase joint ownership. As a result, in its judgement the court treated both parcels as though they were held in joint tenancy and, despite the parties' differing views on the treatment of defendant's initial contribution, the court was never disabused of its mistaken belief. Although the trial judge is not to be faulted, the error is obvious and the judgment is tainted by the parties' failure to distinguish between the two forms of joint ownership. In general, joint tenants own equal undivided shares even though their initial contributions may have been unequal. That result is a consequence of the right of ownership that attaches to a joint tenancy. Tenants in common, on the other hand, are presumed to own equal shares, but this presumption may be overcome by evidence, such as evidence of unequal initial contributions, establishing an intention to have unequal shares. See generally Creteau Principles of Real Estate Law, Castle Publishing Co., 1977; see also Hardigan v. Kimball, 553 A.2d 1265, 1266 (Me.1989) (discussing rights of joint tenants). Thus it is evident that the court erred in failing to consider defendant's initial contribution to the Standish property, held as a tenancy in common. Because this results in the necessity for vacating only a part of the judgment, we proceed to consider the remaining issues. In addition, defendant argues the court erroneously refused to consider the initial payments he made in purchasing the Scarborough property. Even though this property was held in joint tenancy, defendant argues that Boulette v. Boulette, 627 A.2d 1017 (Me.1993), cited by the trial court, is inapplicable because that case dealt with the creation of a joint tenancy after the acquisition of the property. Defendant argues that where, as here, the purchase money for the property was extended simultaneously with the creation of the joint tenancy, the joint tenant who extended the purchase money should be credited that amount on partition. Defendant's argument is contrary to the very purpose of joint tenancy. In Boulette, we stated: [A]s joint tenants, the parties initially held an undivided one-half interest in the property. The division of property held in joint tenancy should take into account all equities growing out of that relationship. Contributions of the parties to the property prior to the joint tenancy, however, are not equities growing out of the joint tenancy relationship. To allow the consideration of contributions preceding the joint tenancy would defeat joint ownership. Boulette v. Boulette, 627 A.2d 1017, 1018 (Me.1993). See also Lalime v. Lalime, 629 A.2d 59 (Me.1993) (where husband deeded his own property to himself and his wife in joint tenancy, the rules of ownership unique to joint tenancy would apply regardless of husband's assertion that the transfer was solely for the purpose of securing a loan and was not intended as a `true' joint tenancy). Although it is true that in Boulette we did not specifically deal with a simultaneous contribution and creation of a joint tenancy, this issue has been settled in Maine for over half a century. In Greenberg v. Greenberg, 141 Me. 320, 323-24, 43 A.2d 841, 842 (Me.1945), we held that the joint tenants owned an equal, undivided share of the property, even when one joint tenant supplied 100% of the purchase price and simultaneously had the land deeded to himself and another as joint tenants.