Occupational Rent

[miragesailor]

I am in a situation where my ex spouse moved out of the matrimonial home voluntarily over two years ago and never paid a dime again towards any of the home expenses. They are now claiming occupational rent and everything I have read about the subject tells me they do not meet the required threshold to win an argument on this in court.

Is there anyone who has been through the same experience under my conditions that can shed some light on this? I need to know if this is an argument I should stand my ground on or if I should just give in to their demands?

[FightingForFamily]

Don't give in, in my case it was just a scare tactic put out by her lawyer to make you nervous about court.

You may want to make sure you have proof (in writing) regarding her decision to leave the home. For my case as soon as she left I sent a letter outlining a nesting arrangement to share the home with me moving to the basement until the house was sold. She didn't accept it and chose to stay away, but it completely shattered any hopes of occupation rent for her.

[billm]

It does not matter why they moved out.

Occupational rent is a valid concept. You are living in a home owned by both of you.

If you treat yourself as a renter, and the both of you as owners (you pay rent to both of you), until you do equalization (and transfer ownership or sell the house), that is a fair way to go.

Your contributions to the mortgage, property taxes, upkeep, etc, and what a reasonable rent would be should all go into the equation.

I think most think that it is a wash because of what you have been contributing, but it is reasonable for your ex to ask for it, as long as all the numbers are considered. Considering all the numbers is something that lawyers are intentionally poor at, so you have to understand them and do them yourself.

When are you going to do equalization? Are you buying the house?

[miragesailor]

An equalization amount has been arrived at in the CC recently. Problem is that I cannot get the financing at this point due to tax issues caused by a shared custody arrangement she will not knowledge to CRA and no set amount of child support in place yet, although I have been paying more than the set-off method since day one just in case. Now I'm in a situation where I cannot fulfill the judges order from the CC in the 30 days as required.

What options do I have now?

[Tayken]

Originally Posted by miragesailor

An equalization amount has been arrived at in the CC recently. Problem is that I cannot get the financing at this point due to tax issues caused by a shared custody arrangement she will not knowledge to CRA and no set amount of child support in place yet, although I have been paying more than the set-off method since day one just in case. Now I'm in a situation where I cannot fulfill the judges order from the CC in the 30 days as required.

What options do I have now?

1. Most people do not understand the agreements they sign with their lender (mortgage holder). 99% of them require both parties on a mortgage to REMAIN in the home for the mortgage to be valid.

2. Notify the lender and get a copy of your mortgage agreement. Royal, Sotia and CIBC all have the same agreement basically. If both your names are on the mortgage both have to pay.

3. Once you have validated the clauses you are required per your agreement to notify the lender that the other party to the mortgage vacated the property and give them the date and evidence to their new residence.

4. Find a comperable residence in the area that you can rent. Sign a lease, notify the other party that you are leaving and give them a move date.

5. Notify the insurance company and lender that you are vacating the property and it will be vacant.

6. After you have moved notify the lender to collect half the mortgage and the utilities provider to do the same from the other party.

7. Notify the other party that you want to list the property for immediate sale the next day after your move date. Recommend 3 real estate agents and 3 real estate solicitors for them to choose from to complete the transaction.

8. Leave as soon as possible and give them nothing to hold as leverage over you.

Note: Your mortgage may get immediately called by the lender as they are legally allowed to do when the other person on the agreement left. Second, the lender may call the mortgage when you leave too.

Good Luck!
Tayken

[miragesailor]

Thanks Tayken. I'm sure your information helps a lot of people and I'm glad you took the time to post it. However, in my case I have no plans to leave the house. If my financial situation was straightened out with CRA and I was paying the right "set-off method" CS support I would qualify for the mortage...this I've been told by the bank. The other side has the ability to solve these problems for me but theye are not doing it so I guess I am going to court to fight for what is fairly mine in this case.