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Old 06-11-2017, 01:06 PM
mathatter89 mathatter89 is offline
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Quote:
Originally Posted by Rioe View Post
Constructive trust is for common-law relationships, where there is no equalization like there is for marriage. For a common-law breakup, each person goes away with whatever is in their name, and they split joint assets equally. If this makes it patently unfair, like if someone contributed a lot of money to the other person's RRSP for some reason, or put some sweat equity into the house that was in the other person's name, then they could claim a constructive trust to recoup some of that money back. Another term to search for would be unjust enrichment.

But I thought you were married? Now, it doesn't matter who paid for what or who owned what. So it falls to equalization rules about the change in net worth.

Her asset at marriage is $30k. Was there a car loan? What is the blue book value of the car at the date of separation? What was left on the car loan at separation? Those are all that matter.
I believe unjust enrichment or constructive trusts are applicable to common law couples only?

Anyways, in this case, for the purposes of argument.

Let's assume prior to marriage I bought a $100,000 car, with a $80,000 to go in financing (debt) on date of marriage. Let's assume the car is now worth $30,000 post separation...

Do I owe her $30,000 - $20,000 = $10,000/2 (for equalization) = $5000 or does that not count because the car has always been and is still in my name?
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