Division of House Proceeds when Joint Tenants

[MMMarie]

Hi. I will probably need to eventually hire a lawyer to draw up some sort of separation agreement, but at this point in time, I'm just trying to figure out what I might end up with (financially) when my husband and I separate. Any thoughts would be appreciated.

To make it easier to read, I'll put the info. in point form.....

I had a child with this person in 1987. We didn't move in together at that time... I rented a home, and he owned his own home.

In 1995, he sold his house, and together we purchased a home and all moved in together. He used the proceeds from selling his previous house ($150,000) as the down payment for the house we were buying. On the house title, we are listed as “Joint Tenants”.

In 1996, we got married.

In 2006, we plan to sell the property and go our separate ways.

What can I expect will happen with the proceeds of the sale? Is he entitled to $150,000 off the top (since he had made the down payment) and then the remaining proceeds split 50/50 between us?

Or,

Because we are “Joint Tenants” on title, do I automatically get 50% of the whole amount the house sells for?

Thanks for any advice you can offer.
Marie

[logicalvelocity]

Hi,

I suspect your entitled to 50% of the appraised value of the home along with 50% of the liabilities. It is fact that your are registered as joint tennants and also it is the matrimonial home which is subject to 50% division.

[MMMarie]

Thank you so much for replying.

Can I ask what your thoughts are on the following section from the Family Relations Act of B.C. Does it sound to you like I will get 50%? Our Title Certificate has us listed as "Joint Tenants"..... (I'll try and insert a smiley to highlight the 2 sentences I are wondering about) Also, what length of time might you consider reasonable with regards to how long someone is married to be entitled to equitable distribution, or should I say a fair share, in a judge's eyes..... 1 year? 5 years? 20 years? I know there's probably no 'set' time, but just a rough idea....

Part 5 — Matrimonial Property
Equality of entitlement to family assets on marriage breakup

56 (1) Subject to this Part and Part 6, each spouse is entitled to an interest in each family asset on or after March 31, 1979 when

(a) a separation agreement,

(b) a declaratory judgment under section 57,

(c) an order for dissolution of marriage or judicial separation, or

(d) an order declaring the marriage null and void

respecting the marriage is first made.

(2) The interest under subsection (1) is an undivided half interest in the family asset as a tenant in common.

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Judicial reapportionment on basis of fairness

65 (1) If the provisions for division of property between spouses under section 56, Part 6 or their marriage agreement, as the case may be, would be unfair having regard to

(a) the duration of the marriage,

(b) the duration of the period during which the spouses have lived separate and apart,

(c) the date when property was acquired or disposed of,

(d) the extent to which property was acquired by one spouse through inheritance or gift,

(e) the needs of each spouse to become or remain economically independent and self sufficient, or

(f) any other circumstances relating to the acquisition, preservation, maintenance, improvement or use of property or the capacity or liabilities of a spouse,

the Supreme Court, on application, may order that the property covered by section 56, Part 6 or the marriage agreement, as the case may be, be divided into shares fixed by the court.
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Thanks again.

[logicalvelocity]

It appears by default that property is divided equally. However there is clauses for inheritance or gifts to allow for an unequal division. I don't think that applies to your situation. I think its going to be a roll of the dice as it would be up to judicial discretion to allow for other reasons. It would be how well each party based their case and the facts of the relationship would decide the matter. The other thing that would be looked at if your seeking relief in another form such as spousal support etc. I would spend an hour or two with a BC lawyer to get a professional legal opinion just to be sure where you stand. There is a significant amount on the line.

[may]

I have a similar situation.... except in my case I am CL for 4 yrs. Partner put in $220,000 for down payment of new house and I put in $130,00 for other (trailer, truck, car, feno's on new house) All expences were split 50/50.

I am wondering if the fact that the homes were bought as JOINT TENANTS...... Does this in itself not give the party that did not partake in the downpayment an equal share? Does this not count as the other party GIFTING the other??