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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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Old 07-27-2016, 10:05 AM
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Default Cottage equity buyout

We are separated and still legally own a summer home which we've had for 10 years. We were married 17 years. However I have been banned by my ex from using it since he won't allow me access to it because he wants it. I have then stopped paying into the mortgage since the separation last year since I can't access it. He wants to buy me out less the payments I have not made. Can he do this even though we jointly own it? My name has always been on it.

I'd like to know if I can keep my name on it but not further contribute to payments and still be entitled to half the equity when I am prepared to finalize our separation agreement which is not yet completed.
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Old 07-27-2016, 11:36 AM
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So you want your half of the equity and he wants to give it to you in the form of a buyout. What is the issue?

Your name stays on it until equalization when you transfer it to him alone, whether you are paying or not. You would be entitled to half the equity up until you stopped paying - you wouldn't be entitled to anything past that date as it is his contribution alone.

What he is offering you is exactly what you have stated above is what you both want, so not sure what the issue is.
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Old 07-27-2016, 01:10 PM
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Quote:
Originally Posted by blinkandimgone View Post
So you want your half of the equity and he wants to give it to you in the form of a buyout. What is the issue?

Your name stays on it until equalization when you transfer it to him alone, whether you are paying or not. You would be entitled to half the equity up until you stopped paying - you wouldn't be entitled to anything past that date as it is his contribution alone.

What he is offering you is exactly what you have stated above is what you both want, so not sure what the issue is.
What it sounds like is that they own the cottage together. He's decided it's his cottage and she isn't allowed to use it. So, she decided to stop making a contribution towards the mortgage on said property.

While he wants to buy it out from her, what she would like is for him to continue to pay 100% and when it is sold (to someone other than himself), she'd like 50% of the proceeds. That's how to increase your net worth. Own 50% of something you pay nothing towards and when it's close to paid, cash in that investment.

Nothing like wanting your cake and eating it too.

You can't reasonably expect to receive 50% from the sale of a cottage that, since separation, you have refused to pay your 50% share of. Does your separation agreement specify that you were to maintain your share of this property?

Personally, I believe his proposal to be 100% correct and equitable. 50% equity less the amounts you should have paid, yet didn't.
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Old 07-27-2016, 01:21 PM
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I agree, seems like that's what she's looking for. Neither fair nor reasonable to expect.
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Old 07-27-2016, 01:28 PM
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To me it sounds more like he wants to buy her out now, but she wants to wait until a future date when other financial issues have been resolved - in other words, the cottage buyout and transfer is the "carrot" to get those issues resolved. Given that her share of the equity in the cottage is frozen as of the data she stopped contributing to the mortgage, it probably doesn't make a big financial difference whether he pays out now or later.

I don't think he can force her to take a buyout now - I believe she can continue to refuse unless he gets an order for the sale of the property. But her equity is tied up until she does agree to the buyout.
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Old 07-27-2016, 01:48 PM
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Thanks for your input. The issue is I CANNOT use it? I'm not interested in being bought out currently, I wish to continue using it and when I want to be bought out later, I want my portion of the equity, not now. I'm only going to pay for something I can use, which I still wish to do. Do you not think that that is fair ? By not allowing me to use it, she is trying to force a buyout immediately.
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Old 07-27-2016, 01:54 PM
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Colour me confused, your original post implied your ex was male, and now you imply your ex is female. What's the real story there?

Your ex (he/she) is paying for it and could very well get an order for exclusive possession of the property because of it. Which is very fair.

Your desire to sit on your equity for an unknown and potentially very long period of time, dragging out the entire equalization process for both you and the ex is unreasonable. You are both agreeable to him keeping the property and you keeping your equity, which is fair. Your expectation that this should happen "some day" is unreasonable and will hold up the entire equalization and divorce process.

Your options are basically accept his buyout or buy him out. So take the buyout and use it to get another place somewhere else that doesn't force the two of you to be very awkwardly linked to each other for an indefinite amount of time.

What you're currently looking for is basically the equivalent of stopping paying rent on an apartment, but expecting the landlord should still allow you to be there until you "feel like" moving out even though you aren't paying because you had paid at one point in time.
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Old 07-27-2016, 01:58 PM
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So you're willing to resume making payments on the cottage in exchange for resuming access to the cottage? Why not put that to your ex as a proposal? The position you're in right now - you aren't contributing to the costs but you want to use it - is not a strong one.
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Old 07-27-2016, 02:02 PM
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Quote:
Originally Posted by Splitsville15 View Post
Thanks for your input. The issue is I CANNOT use it? I'm not interested in being bought out currently, I wish to continue using it and when I want to be bought out later, I want my portion of the equity, not now. I'm only going to pay for something I can use, which I still wish to do. Do you not think that that is fair ? By not allowing me to use it, she is trying to force a buyout immediately.
Was the use of this property not addressed in the separation agreement?

Unfortunately, you can't force your ex to hold property in their name because you aren't ready to sell it.

And while I agree that only paying for something you use is fair, this isn't a rental or a lease, it's owned.

You can't expect to get 50% of his 100% mortgage payments from then until sale. In fact, use of the cottage aside, him paying the 100% of the mortgage and taxes is actually protecting your equity interest in the property for the future.
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Old 07-27-2016, 02:29 PM
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"She" was a typo and we do not have a separation agreement yet.
Yes I want to contribute to the payment. All I want is to continue to be able to use it until we establish a formal separation agreement.
I'm obviously I will likely have to settle for the equity up until the day I stopped paying and continue to be banned from my own property!
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