Property Division

[lovemy2kids]

Hi there,
Going through a divorce, we have two children. We individually prepared financials through our lawyer and listed all assests at date of separation. Am I understanding correctly that we list all assests that still exist at date of separation, not ones owned before marriage that no longer exist? My soon to be ex was given property as a gift before marriage to be used as the matrimonial home. The home was sold just after we were married and we used the proceeds to purchase our one and only matrimonial home as the gifted home was in dire need of repairs. I've helped upkeep, renovated, paid line of credits for renovations, etc. We've been married 11 years. His lawyer is allowing him to deduct the proceeds of the sold property in his financials - not even net proceeds as there was capital gains tax plus legal fees. My lawyer is arguing he gifted it to me as my name is on the deed of the matrimonial home too. Is he entitled to this deduction? The gifted property no longer exists at time of separation, but can be traced to the purhcase of our home. If so, them I'm out of the house without a penny once debts are cleared. He'll live in a huge 4 bedroom home while I'll barely able to pay for a rental with kids. I can't get my head around this and my lawyer now has to do research. I'm asking we just go to court and let the judge decide. Any comments/opinions?

[FreeNow]

As long as you were married and not CL the value of the matrimonial home will be split.
The only way this 'gift' ,that was given to your ex could be excluded from equalization is if he had taken the funds from the sale and kept them in an account in his name. In this case the funds became co-mingled in the matrimonial home.

FN

[Suchislife]

This is a sticky situation because your ex does have a right to list what he owned 'on the date of marriage' in HIS name.
i.e. vehicles, furniture, houses etc....

Having said that, you will split the assets and liabilities as per what they are worth on the valuation date or the date of separation.

Your lawyers argument that he gifted to you when he put your name on the matrimonial house deed, seems reasonable.

It may take a while to come before a Judge for a decision.

See what your lawyer comes up with in research before you worry too much.

Maybe you could sprinkle some fairy dust over the EX's head and then he would realize that it's a little unreasonable to set the mother of his two children back to square one financially after an eleven year marriage in which you both put your monies into the marriage pot.

[standing on the sidelines]

I am thinking that once he used money from the gift home to buy a joint home then the money from the gift home became joint property. I also noticed that the gift home was suppose to be used as the matramonial (sp) home so was it intended to be a wedding gift??

[dadtotheend]

Once inheritance funds are mingled in with marital assets and not maintained separate and distinct, they lose their special status and cannot be deducted from a spouse's net family property. (If you don't yet know that term, search it in this forum and Google, it's worth the research time).

Beyond that, it doesn't matter who owned the matrimonial home, it also is treated differently under family law, and is split equally, regardless of who paid what.

[reverend]

Freenow and Dadtotheend is right. I used $ out of my RRSP's prior to the marriage for the down payment on our house. My lawyer just gave me the "you-poor-dumb-schmuck" look and said once I did that they got thrown into the pot minus the first 5000. Oops. I also learned that my wedding rings considered by etiquette to be given back are considered a gift under the eyes of the law, unless their value is over I think she said 2500 in which case they'd be considered matrimonial property.