My wife and I are negotiating on various options to come to terms on an equitable settlement on separation. We've been co-habitating for 11 years (married for 7)
Option One:
* Sell current home ($295,000) and split proceeds on sale 50/50 after joint debts paid (mortgage, LOC etc)
* Split furniture
* We would both rent separate apartments
* She would fight all the way and go the legal route for Spousal support range 1400-1700 monthly for 10 years (There is a 70/20 difference in my salary as compared to hers - I've already had a lawyer perform a what if calculation and based on my salary that's the range I could expect if it went to court). She has a very different employment then mine with no benefits package such as pension or medical benefits). On her salary, very unlikely she would qualify for her own mortgage at this time.
* There would be a pension equalization payout from me to her (value TBD but likely in the range $30-40,000)
* She would also apply for splitting of my Canada Pension Benefits
* Split my RRSPs with her (she has none)
Option Two:
* Sell current home and split proceeds on sale 50/50 after joint debts paid (mortgage, LOC etc)
* Split furniture
* We (joint mortgage) buy a "new" home that she would live in (approximate value 150,000 or <). After 5-7 years she applies for a 2nd mortgage to buy me out so that she gets clear title)
* I pay spousal support $1000 for 10 years
No pension payout or transfer of CPP benefits
I keep my RRSPs
I will rent (I intended to anyway) for the next couple of years, I may consider buying after that.
Has anyone dealt with a similar circumstance where to avoid costs on one side, (and court costs and legal fees to boot), one party agreed to enter into a joint mortgage with the other? What are the pitfalls in doing so?
Option One:
* Sell current home ($295,000) and split proceeds on sale 50/50 after joint debts paid (mortgage, LOC etc)
* Split furniture
* We would both rent separate apartments
* She would fight all the way and go the legal route for Spousal support range 1400-1700 monthly for 10 years (There is a 70/20 difference in my salary as compared to hers - I've already had a lawyer perform a what if calculation and based on my salary that's the range I could expect if it went to court). She has a very different employment then mine with no benefits package such as pension or medical benefits). On her salary, very unlikely she would qualify for her own mortgage at this time.
* There would be a pension equalization payout from me to her (value TBD but likely in the range $30-40,000)
* She would also apply for splitting of my Canada Pension Benefits
* Split my RRSPs with her (she has none)
Option Two:
* Sell current home and split proceeds on sale 50/50 after joint debts paid (mortgage, LOC etc)
* Split furniture
* We (joint mortgage) buy a "new" home that she would live in (approximate value 150,000 or <). After 5-7 years she applies for a 2nd mortgage to buy me out so that she gets clear title)
* I pay spousal support $1000 for 10 years
No pension payout or transfer of CPP benefits
I keep my RRSPs
I will rent (I intended to anyway) for the next couple of years, I may consider buying after that.
Has anyone dealt with a similar circumstance where to avoid costs on one side, (and court costs and legal fees to boot), one party agreed to enter into a joint mortgage with the other? What are the pitfalls in doing so?
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