Common Law 11 months, she wants half

[HammerDad]

All you should be doing is making her an offer for 1/2 of any increase in value of the home over the purchase price, together with any down payment she provided towards the house. If she says no, that she is entitled to half of the entire equity of the house, suggest that she speak to a lawyer because you are not willing to agree to unjustly enriching her.

Put your offer to buy her out at the current Fair Market Value of the house, minus purchase price and leave it at that. She will lose horribly in court should it actually make it that far. Chances are she is just trying to bully you into giving her extra coin that she doesn't deserve and isn't entitled to. So call her bluff and make her talk to a lawyer who will hopefully set her straight about what she is actually entitled to.

Should she actually take you to court, you provide them with your written offer to her to buy her out at FMV - purchase price + any down payment she provided, and ask for costs of the action, because she is wasting the courts time.

[ONdad]

Also, are you sure she's not a man, because what she's doing takes balls

[Mark Grant]

Thanks Hammer,

I have to admit, the emotional side of me finds the idea of countering her obscene 50% claim with an equally obscene low-ball offer and tellng her to take or see you in court and try to stick her with costs, to be an attractive one.

However, the rational side of me says it's a high-risk move. I've coming to the point where I'm resigned to the fact that this is going to cost me so I'm biting the bullet and seeking legal advice.

Mark

[HammerDad]

Originally Posted by Mark Grant

Thanks Hammer,

I have to admit, the emotional side of me finds the idea of countering her obscene 50% claim with an equally obscene low-ball offer

If you make an unreasonable offer to her, she may use it as evidence that you are not negotiating in good faith and try to stick you with costs. Make any offer fair and reasonable based on the current FMV of the house. Leave her to try and argue to a court why she should be entitled to 50% of funds that were never hers.

and tellng her to take or see you in court and try to stick her with costs, to be an attractive one.

I would make 1, maybe 2 offers to her based on appraised value of the house. Most realtors will do an appraisal for free. But seriously, tell her you are not willing to consider any funds you personally contributed to the purchase of the house in any offer to her or from her. Any offer from her that does include your deposit will be summarily declined.

However, the rational side of me says it's a high-risk move. I've coming to the point where I'm resigned to the fact that this is going to cost me so I'm biting the bullet and seeking legal advice.
Mark

Speak to a lawyer if you must and have them send her an offer to buy her out. Though, part of me would rather sit tight and do nothing outside of getting the house appraised and then making her an offer on that, taking into consideration the calculations previously mentioned. Let her waste the money on a lawyer first.

Also, on a side note. Be sure not to engage her in any sort of argument and I may suggest getting a digital voice recorder. Once she knows you are not going to rollover, she may get nasty and hit you with a false DV claim and get you kicked out of your house until this is settled. Personally, I wouldn't speak to her at all. All communication would be via email.

[KanataKathy]

Mark;

Being you weren't together long enough for this relationship to become common-law, I suggest finding a law firm that is experienced in both family law AND litigation.

"When your only tool is a hammer, everything looks like a nail". Likewise, a lawyer that specializes in family law will look at your situation from a family law perspective.

I'm in a similar situation. I hope it turns out to be the 'slam-dunk' that most here think it will be.

K.

[ONdad]

You should get the appraisal done by an actual appraiser and tell them that it's for a common-law marriage break-down. They'll be very thorough and the appraisal will stand up in court. The appraisal will cost around $3-400, but it sets you on very firm ground for valuation and, as an added bonus in your case, they tend to appraise conservatively so that they can be sure the selling price would meet the valuation.

Real estate agents tend to value homes higher than appraisers, because they want you to get excited at the value and list it with them.

I'd also make any offer take into consideration selling commission, legal fees, and any closing costs that you'd have to pay if you were to dispose of it. If it comes out that there's no equity left, point that out to her. If that's the case, I'd make the offer that she pays for half the costs of selling.

So, if the house cost $200,000 and you put down $20,000 and the house is appraised at $210,000, I'd point out that, if you sold the house, you'd net $210,000-$10,000(RE fees)-$3000(closing costs)-$20,000(your down payment) = $177,000. After 11 months, your mortgage wouldn't be down to $177,000, so there's no equity left to share. If your mortgage is at $176,000, she gets $500, or half the equity.

[Mark Grant]

Thanks KanataKathy.

It would appear that we are in a very similar situation indeed. We are just outside of Kanata. I do hope this will turn out to be the "slam-dunk" as well. I'm hoping for the best but preparing for the worst.

Good luck to you.

Mark

[Mark Grant]

Thanks for the input ONdad,

I've already spoken to a local Real Estate agent and it appears that your assumptions are close to the truth, she did give a casual estimation that seemed a little high. I think I'll try the appraiser route this week.

[dadtotheend]

Definitely get the appraisal. If you took a real estate opinion to a judge you will be told to come back later with an appraisal. Translation -----> wasted time and expense in court.

You will pay less for the appraisal than you will waste in court.