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-   -   proceeds of house, where do they go? (http://www.ottawadivorce.com/forum/f5/proceeds-house-where-do-they-go-21205/)

denbigh 07-19-2017 02:49 AM

proceeds of house, where do they go?
 
If you have both agreed to sell the marital home but have not settled the financial settlement, and the house sells, what happens to the money, is it held in trust at a lawyers until equalization is settled, or do you each take half and then someone has to pay the other person for equalization later when it is all settled?

Berner_Faith 07-19-2017 06:04 AM

Quote:

Originally Posted by denbigh (Post 222295)
If you have both agreed to sell the marital home but have not settled the financial settlement, and the house sells, what happens to the money, is it held in trust at a lawyers until equalization is settled, or do you each take half and then someone has to pay the other person for equalization later when it is all settled?



It sits in trust. I'm sure you both could agree to receive X amount but the lawyers won't split the proceeds without everything being settled. At least that's how I have known it to work


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Stillbreathing 07-19-2017 09:48 PM

In trust with the real estate lawyer who only holds them so long then gets fed up because there is no settlement or even trial on the horizon for the coming years. He then transfers the money to the law society of upper Canada at which point you can kiss your money goodbye even if it's seven figures. Once it's in the hands of the jaw society it magically disappears, never to be seen again even if ordered to reappear.

Karma2016 07-27-2017 12:54 AM

I just went through this.

I was the title owner of our matrimonial home so when it sold, the proceeds would be paid to me; however, my ex still need to Consent to the sale as it was our matrimonial home.

It was a big house, and we were in agreement to sell it. I told him I would need my share of the proceeds to pay for the townhouse I would be purchasing. He even congratulated me via email and seemed genuinely happy for me.

Two weeks before the deal was to close, we received a copy of letter from his lawyer to my real estate lawyer instructing him that ALL the proceeds were to remain in trust until he and I reached a financial settlement, and he would not be consenting to the sale otherwise.

We offered to only release half of the proceeds to me so I could carry out my legal contract to buy the townhouse, and his half of the proceeds would remain in trust.

He said no.

So we had to make application to the court to force him to consent to the sale. Once he was served, he agreed to exactly what we asked for. He just wanted to make me spend money on my lawyer.

So this is how it's gonna be for us.....a long, drawn-out Shitshow.

Berner_Faith 07-27-2017 10:27 AM

Quote:

Originally Posted by Karma2016 (Post 222435)
I just went through this.

I was the title owner of our matrimonial home so when it sold, the proceeds would be paid to me; however, my ex still need to Consent to the sale as it was our matrimonial home.

It was a big house, and we were in agreement to sell it. I told him I would need my share of the proceeds to pay for the townhouse I would be purchasing. He even congratulated me via email and seemed genuinely happy for me.

Two weeks before the deal was to close, we received a copy of letter from his lawyer to my real estate lawyer instructing him that ALL the proceeds were to remain in trust until he and I reached a financial settlement, and he would not be consenting to the sale otherwise.

We offered to only release half of the proceeds to me so I could carry out my legal contract to buy the townhouse, and his half of the proceeds would remain in trust.

He said no.

So we had to make application to the court to force him to consent to the sale. Once he was served, he agreed to exactly what we asked for. He just wanted to make me spend money on my lawyer.

So this is how it's gonna be for us.....a long, drawn-out Shitshow.



This is confusing... so you offered him to hold his share in trust but wanted him to release your share? No wonder he disagreed... essentially you were getting money and he wasn't. What would have happened if you owed him more in equalization?


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Karma2016 07-27-2017 10:31 AM

Quote:

Originally Posted by Berner_Faith (Post 222447)
This is confusing... so you offered him to hold his share in trust but wanted him to release your share? No wonder he disagreed... essentially you were getting money and he wasn't. What would have happened if you owed him more in equalization?


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Ummm....no. That's not gonna happen. He is a lawyer and has been practising 30 years. He owns his building, has a corporation, has hundreds of thousands of dollars in RRSPs and is driving a car worth over $100,000. He will have to pay me the other half and more when there is an equalization payment. Plus months earlier he was in agreement to this. He wanted me to sell our house. Where would I have lived without being able to buy another?

arabian 07-27-2017 10:40 AM

Karma2016 is correct. There is much case law relevant to this situation. If there exists a large disparity in income/assets sometimes the high-income/net worth individual has to put additional money in trust so that lower-income/lower net-worth individual can draw on it for some things including (but not limited to) legal fees.

Berner_Faith 07-27-2017 11:33 AM

Quote:

Originally Posted by Karma2016 (Post 222449)
Ummm....no. That's not gonna happen. He is a lawyer and has been practising 30 years. He owns his building, has a corporation, has hundreds of thousands of dollars in RRSPs and is driving a car worth over $100,000. He will have to pay me the other half and more when there is an equalization payment. Plus months earlier he was in agreement to this. He wanted me to sell our house. Where would I have lived without being able to buy another?



You never stated that in your post and many people rent after divorce until everything is settled. Either way it seems you got what you wanted


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