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Divorce & Family Law This forum is for discussing any of the legal issues involved in your divorce.

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Old 03-26-2014, 05:48 PM
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Quote:
Originally Posted by Tawanda View Post
Thank you so much everyone for your replies! Things are getting a lot clearer for me.

What I am confused most about is this,

He makes more than twice as much as I do for his salary. (I have taken a little bit a career hit as I chose to be a stay at home mother for a few years). If we were to split our joint accounts right now, and our paychecks started going into our own account, I do not have enough money to cover the mortgage for this house and all of the bills, groceries, gas, etc. I would need him to start making support payments in order to afford everything.

But I do not know exactly how much support I would receive, because we do not have our separation agreement in place yet. I have a rough idea based on the divorcemate table amounts, yet as everyone has mentioned, these cannot be trusted, as there is a low and high range of amounts, and I do not know how much/if any spousal support I will receive.

So before the separation agreement is in place, how do I determine how much support he would pay me? Would I just work that out with my husband?

Thanks again!
As a rule I would suggest that you try to work wit the low end of the Divorcemate tables. To try and go in front of a judge and get more than the low end, you would have to prove why you need it. And going to court will cost you thousands if not tens of thousands and the process may take years. My ex was highly combative, but she was wise enough not to push this one.

If you cannot afford the house unless he contributes to the mortagage and pays you child support and spousal support, you can't afford the house.
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Old 03-26-2014, 05:59 PM
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You have received some good advice. I am just going to add the following...

CS is easy to figure out. You take your salary, apply the CS tables that is what you owe him for CS, then you take his salary, apply the CS tables and that is what he owes you. You do not need a separation agreement or court order for that part. That is really easy.

As for Occupational Rent...you need to look into this. Basically what it means is you would be charged far market rent for that property. Lets say fair market value would be $1500 per month, that means you would owe him $750. Only $750 because he is 50% owner, as are you, so you only pay him half of the market rent.

So if your mortgage a month is say $1600, you both must pay $800, but remember, you owe him $750 for rent, so he would only owe you $50 a month for the mortgage.

If you use HammerDads numbers, in this case he would only owe you $550... this does not take into consideration any SS and you should not consider SS in this calculation. Really you should not even count on CS to make your budget, but that isn't always easy.

You can't expect him to pay for his own place, plus continue paying for the mat home, when he has no access to it and it is not your residence. Essentially you are now his tenant for a lack of a better term.

You should know if you can afford the house or not, again DON'T use CS or potential SS to do this calculation. If you cannot afford the house on your own salary, or to buy him out, I wouldn't waste any time putting the house up for sale. You don't need a separation agreement to do that if you both agree.

Remember... you are paying lawyers a lot of money. The more you two can agree one without lawyers, the more you will have financially in the end.
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Old 03-26-2014, 06:35 PM
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In order for me to buy him out of the home, I would have to offset it with his RRSPs that he owes me. He has a considerable amount of investments, that I am entitled to half of. Enough that I could likely offset his portion of the mortgage with RRSPs. My lawyer also had mentioned that I could use some of the RRSPs toward my monthly mortgage payment. This idea, however, scares me a bit. As I am not sure it is the wisest to use my portion of RRSPs to go toward my house. For one thing, then I wouldn't have as much RRSPs of my own for retirement. On the other hand, if I used the RRSPs towards the house, the value is still there, only in a different form.

Does anyone have an opinion whether it would do me any harm to offset the mortgage buyout using RRSPs?
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Old 03-26-2014, 06:48 PM
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how much is owed still on the house and how much is it worth in todays market? I would talk to a bank first to see if you can even get a mortgage. Don't forget there are other costs like repairs etc that you will have to be able to afford to do.

Sometimes its just better to sell then start fresh.
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Old 03-26-2014, 08:56 PM
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Some of the advice you've received is correct; most of it is wrong.

Frankly, I'd make an appointment with your banker and let them know there is a separation in the works; and you will not be making any mortgage payments for the next few months. They won't power of sale for at least 4 - 6 months so you've got time to deal with the discussion/sale of mat home if necessary.

Stop paying taxes as well, if you pay them directly, cancel your pre-auth. Municipalities take forever to catch up to owners. Both of those big ticket monthly items will be divided at equalization/date of settlement, and you won't get any credit for paying them out of your own pocket - i.e, if he is not paying half of those expenses, you don't either. Save your money for your new place.

Do pay your utilities.

Insist on the payment of cs as of the day he left. You should be able to calculate that cs payment based on your respective salaries. Insist now on the payment of ss. Hasn't your lawyer passed this on to his? How long has the ex been out of the house? Send a letter now.

And for gods sake, no, don't draw from RRSP's to make monthly mortgage payments before settlement- that is a double hit to you personally.

PM me if you have questions.
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Old 03-26-2014, 11:24 PM
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Quote:
Originally Posted by mcdreamy View Post
Some of the advice you've received is correct; most of it is wrong.

Frankly, I'd make an appointment with your banker and let them know there is a separation in the works; and you will not be making any mortgage payments for the next few months. They won't power of sale for at least 4 - 6 months so you've got time to deal with the discussion/sale of mat home if necessary.
That is excellent advice. Most banks will work with you to arrange a "mortgage holiday" of a couple of months, if they are aware that a separation (or other expensive life event) is in progress. They don't want to foreclose on you any more than you want to be foreclosed on.

If you would have to use RRSPs to either buy your ex out or to make monthly mortgage payments, you probably can't afford the house. Perhaps you should start thinking about selling it.
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Old 03-26-2014, 11:50 PM
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I'll throw my 2 cents in...

Do you have a lawyer? Might be a good idea to get some good solid legal advice as you can see there are many different opinions on what you should and shouldn't do. Many people on here offer advice based on their own personal experiences.

I would 'walk before you learn how to run.' Check with your employment benefit package and see if you have any free legal advice. Many people don't look closely at their plans to see if they have any coverage.

I would recommend that you carefully prepare a monthly budget outlining ALL of your expenses. Your soon to be ex will be advised by his lawyer to do the same thing. It is a starting point.

Take it one step at a time. You will need to prepare a concise financial summary of your situation for a lawyer and/or a banker.

There is plenty of good advice on what to do and what not to do on this forum. You have to weigh the information as it relates to your own personal situation.
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Old 03-27-2014, 09:52 AM
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Thanks everyone. I like the idea of taking a short break off mortgage payments, if my mortgage broker will allow us to do that.

I do have a lawyer but she has not made it very clear what I should be doing now, before we have our separation agreement in place. I am going to try to get some more legal advice on this matter.
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Old 03-27-2014, 11:10 AM
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Quote:
Originally Posted by Tawanda View Post
Thanks everyone. I like the idea of taking a short break off mortgage payments, if my mortgage broker will allow us to do that.

I do have a lawyer but she has not made it very clear what I should be doing now, before we have our separation agreement in place. I am going to try to get some more legal advice on this matter.
Just be aware that you will continue to accumulate interest during the time you are not making payments.

My ex had all these plans to buy me out of our house and I went along with it. Turns out the bank wouldn't approve her. We spent months working on something that wasn't even possible.

Unfortunately for my ex her pension was worth 3x mine. This meant in order to buy me out of the house she owed me almost $79,000.00

If I bought her out of the house she owed me $2100.00 again all because of her massive pension.

If you have not done a pension assessment start that process now it takes a long time and can have a drastic affect on equalization.

Again as others have said the first thing you need to do if you want to keep the house is get pre-approved on your own. Most banks won't even allow you to use child support as income. You would have to qualify on your own. It's a very easy process. You can contact any broker and ask to be pre-approved. You either will or you won't. There is no point planning on doing something that is not even a possibility.
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Old 03-27-2014, 11:32 AM
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Thanks FB. I have been doing a lot of thinking about this and I am guessing it is most feasible for me to sell the house. I am speaking to a budget planner next week to see if it's even a remote possibility that I could keep the house. I do like your idea of going to a bank to see if I would be pre-approved for a mortgage based on my salary. My guess is that my salary alone would not be enough to get approved for. I had emailed my mortgage broker a while back to get an idea of whether I could afford to keep the house, and he told me that he couldn't do anything until we had our separation agreement in place to show him.

I do have to get started on the pension assessment, I will start that right away as I heard it is a lot of work.

I just emailed my lawyer a whole bunch of questions regarding how much support I should be receiving from my H now

Right now what I am concerned about most is being able to afford the current matrimonial home expenses, (mortgage, utilities, living expenses). As, by default I am left in this house and I need to figure out a way to make it work!! I almost wish I had been the one to move out, even though he left me. Just simply due to the fact that right now he is paying the lower rent!
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