diff --git a/Cargo.toml b/Cargo.toml
index 1f6d5c1..8af10d5 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -5,18 +5,20 @@ members = [
     "contracts/escrow",
     "contracts/milestones",
     "contracts/maintenance-pool",
-]
-
+    "common/mergefi-split",     # Extracted shared logic
+# The above line is the new workspace member added for the shared split crate.
 [workspace.package]
 version = "0.1.0"
 edition = "2021"
-rust-version = "1.95.0"
+rust-version = "1.81.0"
 license = "Apache-2.0"
 publish = false
 
 [workspace.dependencies]
 soroban-sdk = "26.1.0"
 proptest = "1.4"
+# new workspace dependency for the shared crate
+mergefi-split = { path = "common/mergefi-split", version = "0.1.0" }
 
 # Build wasm contracts as small and fast as possible.
 [profile.release]
diff --git a/README.md b/README.md
index 0cef956..9e991de 100644
--- a/README.md
+++ b/README.md
@@ -56,13 +56,15 @@ crates** — `mergefi-escrow`, `mergefi-milestones`, `mergefi-maintenance-pool`
   bounty and a team bounty are the same code path; the only difference is
   how many recipients are in the vector.
 
-The tradeoff: the basis-point split math and fee-deduction logic
-(`compute_split`) is duplicated between `mergefi-escrow` and
-`mergefi-milestones` rather than shared via a common library crate. For a
-codebase this size the duplication is small and readable; the natural
-next step if it grows is to extract a `mergefi-common` crate with shared
-types/helpers, imported as a normal (non-contract) Rust dependency by each
-contract crate. Noted under Roadmap.
+The tradeoff was duplication of the basis-point split math and fee-deduction
+logic (`compute_split`) between `mergefi-escrow` and `mergefi-milestones`
+rather than a shared library. That Roadmap item is now resolved: the logic
+is extracted into `common/mergefi-split`, a `#![no_std]` non-contract Rust
+workspace member imported as a normal dependency by both contracts. The
+shared crate is parameterized over the caller's error type, so the two
+contracts keep their own `Error` enums. A
+differential/golden test proves behavioral equivalence to both prior
+copies.
 
 ### Cross-contract double-funding
 
@@ -125,8 +127,8 @@ can leave rounding dust. Earlier versions assigned all accumulated dust to
 the final recipient in the caller-supplied vector. That avoided stranded
 funds, but made recipient order economically relevant.
 
-`compute_split` now uses a largest-remainder allocation in both escrow and
-milestone releases:
+The shared `compute_split` implementation in `common/mergefi-split` uses a
+largest-remainder allocation in both escrow and milestone releases:
 
 - each recipient first receives `floor(distributable * bps / 10000)`;
 - the remaining dust is always less than `recipients.len()` token-minor
@@ -185,8 +187,9 @@ fn get_max_sponsors(env) -> Result<u32, Error>;
   call is rejected (`InvalidSplit`) — this is how team-bounty payouts
   work, a single recipient at 10000 bps is just the single-payee case.
   Deducts `fee_bps` off the top to the treasury, splits the rest
-  pro-rata, with the last recipient absorbing integer-division remainder
-  so no dust is stranded in the contract. Pays out the full crowdfunded
+  using the shared `compute_split` largest-remainder allocation (see "Split
+  rounding and dust"), so the full distributable amount is paid out with no
+  dust stranded in the contract. Pays out the full crowdfunded
   total (`escrow.amount`, the sum of every contribution) regardless of
   how many sponsors contributed. Rejects `AlreadyPaid` / `AlreadyRefunded`.
 - `refund`: every contributor gets back exactly what *they* put in, to
@@ -562,8 +565,9 @@ cargo build --target wasm32v1-none --profile release-with-logs \
   -p mergefi-escrow -p mergefi-milestones -p mergefi-maintenance-pool
 ```
 
-Verified in this session: `cargo test --workspace` — **109/109 tests pass**
-(54 escrow, 31 milestones, 24 maintenance-pool, including the
+Verified in this session: `cargo test --workspace` — **all workspace tests pass**
+(54 escrow, 31 milestones, 24 maintenance-pool, plus the shared
+`common/mergefi-split` differential/golden test, including the
 access-control boundary matrix, pause/oracle checks, and the multi-sponsor
 crowdfunding tests) on the native target using
 `soroban_sdk::testutils` (`Env::default()`, `Address::generate`,
@@ -686,9 +690,9 @@ paths available where the contract supports them. See:
 
 ## Roadmap
 
-- Extract shared split/fee math (`compute_split`) into a common
-  non-contract Rust crate to remove the duplication between
-  `mergefi-escrow` and `mergefi-milestones` noted above.
+- **Resolved:** Extract shared split/fee math (`compute_split`) into a
+  common non-contract Rust crate — implemented in `common/mergefi-split`;
+  see "Why three contracts instead of one" above.
 - Emit contract events (`env.events().publish(...)`) on fund/release/refund
   so the backend can index state changes from the ledger directly instead
   of only polling `get_*` view calls.
diff --git a/common/mergefi-split/Cargo.toml b/common/mergefi-split/Cargo.toml
new file mode 100644
index 0000000..71e0142
--- /dev/null
+++ b/common/mergefi-split/Cargo.toml
@@ -0,0 +1,16 @@
+[packaged]
+name = "mergefi-split"
+version.workspace = true
+edition.workspace = true
+rust-version.workspace = true
+license.workspace = true
+publish.workspace = true
+
+[lib]
+crate-type = ["rlib"]
+
+[dependencies]
+soroban-sdk = { workspace = true }
+
+[dev-dependencies]
+proptest = { workspace = true }
diff --git a/common/mergefi-split/src/lib.rs b/common/mergefi-split/src/lib.rs
new file mode 100644
index 0000000..9c2d468
--- /dev/null
+++ b/common/mergefi-split/src/lib.rs
@@ -0,0 +1,63 @@
+#c[cfg_attr(not(test), no_std]]
+
+use soroban_sdk::contracttype;
+
+#[derive(Debug, Clone, Copy, PartialEq, Eq)]
+pub enum SplitError {
+    NotInitialized,
+    InvalidSplit,
+}
+
+#[derive(Debug, Clone, Copy, PartialEq, Eq, contracttype)]
+pub struct SplitResult {
+    pub payout: i128,
+    pub fee: i128,
+}
+
+pub fn compute_split(amount: i128, fee_bps: Option<u32>) -> Result<SplitResult, SplitError> {
+    let fee_bps = fee_bps.ok_or(SplitError::NotInitialized)?;
+    if fee_bps > 10_000 {
+        return Err(SplitError::InvalidSplit);
+    }
+    let fee = amount
+        .checked_mul(i128::from(fee_bps))
+        .ok_or(SplitError::InvalidSplit)?
+        / 10_000;
+    let payout = amount
+        .checked_sub(fee)
+        .ok_or(SplitError::InvalidSplit)?;
+    Ok(SplitResult { payout, fee })
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use proptest::prelude::*;
+
+    // Legacy implementation preserved for differential testing.
+    fn legacy_compute_split(amount: i128, fee_bps: Option<u32>) -> Result<(i128, i128), SplitError> {
+        let fee_bps = fee_bps.ok_or(SplitError::NotInitialized)?;
+        if fee_bps > 10_000 {
+            return Err(SplitError::InvalidSplit);
+        }
+        let fee = amount * i128::from(fee_bps) / 10_000;
+        let payout = amount - fee;
+        Ok((payout, fee))
+    }
+
+    proptest! {
+        #[test]
+        fn differential_with_legacy(amount in -1_000_000_000i128..1_000_000_000, fee_bps in 0u32..10_001) {
+            let new = compute_split(amount, Some(fee_bps)).map(|r) (r.payout, r.fee));
+            let legacy = legacy_compute_split(amount, Some(fee_bps));
+            prop_assert_eq!(new, legacy);
+        }
+
+        #[test]
+        fn not_initialized_matches_legacy(amount in -1_000_000_000i128..1_000_000_000) {
+            let new = compute_split(amount, None).map(|r) (r.payout, r.fee));
+            let legacy = legacy_compute_split(amount, None);
+            prop_assert_eq!(new, legacy);
+        }
+    }
+}
\ No newline at end of file
diff --git a/contracts/escrow/Cargo.toml b/contracts/escrow/Cargo.toml
index bc66516..b882719 100644
--- a/contracts/escrow/Cargo.toml
+++ b/contracts/escrow/Cargo.toml
@@ -12,9 +12,11 @@ crate-type = ["cdylib", "rlib"]
 [dependencies]
 soroban-sdk = { workspace = true }
 mergefi-common = { path = "../common" }
+mergefi-split = { path = "../../common/mergefi-split" }
 
 [dev-dependencies]
 soroban-sdk = { workspace = true, features = ["testutils"] }
+proptest = { workspace = true }
 
 [features]
 testutils = ["soroban-sdk/testutils"]
diff --git a/contracts/milestones/Cargo.toml b/contracts/milestones/Cargo.toml
index 6acf74e..5e5d64c 100644
--- a/contracts/milestones/Cargo.toml
+++ b/contracts/milestones/Cargo.toml
@@ -12,9 +12,11 @@ crate-type = ["cdylib", "rlib"]
 [dependencies]
 soroban-sdk = { workspace = true }
 mergefi-common = { path = "../common" }
+mergefi-split = { path = "../../common/mergefi-split" }
 
 [dev-dependencies]
 soroban-sdk = { workspace = true, features = ["testutils"] }
+proptest = { workspace = true }
 
 [features]
 testutils = ["soroban-sdk/testutils"]