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  • Assets and change of financial situation after separation

    Hi Everyone,

    So it has been 6 years since I separated from my wife. We were together for 3 years. Common law for 2 years and married for 1. When I first left in 2011 I made significantly less money than her. I was making 30k and she was making 50k a year. She made it impossible to live in the house when we were separated so I moved back to my parents house. Essentially I couldn't live in the house because her boyfriend kept coming over and things were getting tense. I just left and she refused to sign any separation agreements. Essentially she ended up with all the bills, mortgage and debts because she refused to split any of the assets and I couldn't afford to pay her utility bills and my own. 6 years later after years of schooling, I got a contract job for 1 year and I now make 130k a year.

    Now that I can finally afford a lawyer, should I file for divorce now or wait until I am laid off from my contract job? Do they base spousal support on current income or income before the separation? If i wait until I am laid off, my income will be 0. I also don't want to get any assets until I'm divorced just in case she's entitled to them.

    I essentially want to split all of the debts, sell our house, sell the car we financed together and split any owed money after.

    Right now I do make more money but I have also acquired more debts of my own. I financed my own vehicle so I could get to my job and I owe student loans and a line of credit. Will the judge take my debts into consideration. I am seeing a lawyer ASAP but I figured I would ask here as well.

  • #2
    Originally posted by Bruce44 View Post
    So it has been 6 years since I separated from my wife.
    ^^^ That is your answer. It has been 6 years since you have resided together and the other party hasn't sought any kind of support. They can't, 6 years later, come and seek SS. The maximum most judges will entertain is 3 years late and that has to be with good reason. As well, the advancement in your career had nothing to do with the other party's contribution to you. You did this over the past 6 years.

    Furthermore, you were in a relationship for 3 years. The only thing that needs to be determined frankly is the equalization of the matrimonial property.

    Your debts are your own to bear and hers are hers. Any debt either of you acquired after the date of separation are your problem.

    You should hire a lawyer.

    Good Luck!
    Tayken

    Comment


    • #3
      Bear in mind that if your ex has been making all the mortgage and bill payments for the last six years, she would be entitled to a greater share of the equity in the house than you. (Ditto if she was making all the payments on the car after you left) How much greater that share should be is something that will take lawyers and accountants to figure out. One possibility is that you could split the equity in the house evenly, but then you take on a greater share of the debt. Others may chime in with ideas about how to equalize property after 6 years.

      Comment


      • #4
        Originally posted by stripes View Post
        Bear in mind that if your ex has been making all the mortgage and bill payments for the last six years, she would be entitled to a greater share of the equity in the house than you. (Ditto if she was making all the payments on the car after you left) How much greater that share should be is something that will take lawyers and accountants to figure out. One possibility is that you could split the equity in the house evenly, but then you take on a greater share of the debt. Others may chime in with ideas about how to equalize property after 6 years.
        Honestly I dont even want any equity. But what she wants is to live in the house but have me pay half of the mortgage. She wants to keep the car but have me pay half of the financing. She wants all the assets but have me pay half the debts. Her lawyer inflated her head. Im not paying half of anything i cant use. Im ok with paying a little more of the debt because shes been making more payments. But Im not going to pay off the mortgage and then have her stay in the house with her new boyfriend who she has kids with

        Comment


        • #5
          The only argument she could possibly have for getting SS from you is if she did something to contribute to your education and current job. You mentioned schooling. Did you do any of that while you were with her, or was it all after you left? Even if there was an entitlement to SS, it would not be a very long duration, with a one-year marriage.

          It may be tricky to disentangle the equalization six years after the fact. Do you have any idea what the house was worth six years ago? What was the mortgage then? How much money would you be arguing about anyway?

          Comment


          • #6
            No I got my education 2 years after moving out. She didnt help with any of it. The house was worth 147k, car was 35k. The car is down to 10k owing and Im not sure about how much is on the mortgage. Based on the previous mortgage payments I made, it should only be 60k left on it. Then we racked up her line of credit to 20k but she has all the things we bought with it.

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            • #7
              No I got my education 2 years after moving out. She didnt help with any of it.

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              • #8
                Keep in mind that because you have been deprived of enjoying your matrimonial home for the last six years and she has had exclusive possession, she may very well owe you occupation rent for those six years.

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                • #9
                  Originally posted by stripes View Post
                  Bear in mind that if your ex has been making all the mortgage and bill payments for the last six years, she would be entitled to a greater share of the equity in the house than you.
                  Usually not true. The person living in the house owes occupational rent to the other spouse. Judges usually decide that the occupational rent is roughly exactly the same amount as half of the mortgage payment.

                  In other words, equity would still be shared equally. She paid more for the mortgage, but she also got to use the house.

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                  • #10
                    So she didn't ask anything from you in those 6 years, and now that you got a good income, she wants something from you?

                    As per the home, I think it's a tricky arena as you didn't contribute to the mortgage for the last 6 years. The house has obviously gone up in value but how much of that value increase in the last 6 years did you contribute to?

                    The house could be sold I suppose, and the price increase in 6 years and how much you paid initially all be factored in, etc. With a really good lawyer, you may be entitled to something from the house but all the mortgage payments she solely made will more than likely be factored in how much you get. It may even be irrelevant as it was/is still technically your home.

                    Unless the chances of you profiting from this litigation is greater than 90 %, would just give her everything (excluding SS) and move on. If she wants you to pay half the mortgage or anything while banging her new boyfriend that's just wrong. She paid it for the last 6 years without needing help from you she's been self sufficient she doesn't need any SS from you. That's a big win on it's own - do you have any idea how hard I want to party every time I recall that I wasn't ordered to pay any spousal support ?
                    Last edited by trinton; 03-16-2017, 11:18 AM.

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                    • #11
                      Originally posted by Janus View Post
                      Usually not true. The person living in the house owes occupational rent to the other spouse. Judges usually decide that the occupational rent is roughly exactly the same amount as half of the mortgage payment.

                      In other words, equity would still be shared equally. She paid more for the mortgage, but she also got to use the house.
                      This has been going on for six years, though. If she made any improvements to the house (or if she let it fall apart), it could get complicated. I agree that the simplest thing to do would be to say "okay, use of the house offsets the additional mortgage payments", but typically that's after only a few months or a year. If the house has gone way up or way down in value, more complication.

                      I think the OP needs a lawyer to help ensure that things work out as fairly as possible. Six years is a long time.

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                      • #12
                        Im not sure if the price of the house has gone up or down. The bad oil economy impacted alberta housing but she did make alterations to the house like adding a deck.

                        Btw shes ran a business out of our home for the last 6 years, am I entitled to any profits? Im not going to try and get it but I want some demands of my own just in case she starts asking for unrealistic numbers from me.

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                        • #13
                          Originally posted by Bruce44 View Post
                          Honestly I dont even want any equity. But what she wants is to live in the house but have me pay half of the mortgage. She wants to keep the car but have me pay half of the financing. She wants all the assets but have me pay half the debts. Her lawyer inflated her head. Im not paying half of anything i cant use. Im ok with paying a little more of the debt because shes been making more payments. But Im not going to pay off the mortgage and then have her stay in the house with her new boyfriend who she has kids with
                          She's been paying for the house and car for 6 years. You haven't contributed? What other debts are there and who's been paying for them?

                          If you really don't want any equity tell her to keep it all in exchange for getting your name off the mortgage and car loan and any other debts.

                          Your other posts lead me to believe you do want something after 6 years... profits from her home business. Not yours.

                          If there is real equity in the home that wouldn't get burned up in your lawyer costs, then go for it.

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                          • #14
                            Originally posted by paris View Post
                            She's been paying for the house and car for 6 years. You haven't contributed? What other debts are there and who's been paying for them?

                            If you really don't want any equity tell her to keep it all in exchange for getting your name off the mortgage and car loan and any other debts.

                            Your other posts lead me to believe you do want something after 6 years... profits from her home business. Not yours.

                            If there is real equity in the home that wouldn't get burned up in your lawyer costs, then go for it.
                            1. Ive tried to tell her to get my name off the house and car loans but she doesnt want to refinance. She wants to force me to pay half the mortgage and car loan even though I cant use it. Ive told her I don't want anything. I just want my name off the bills.
                            2. Even if she wanted to refinance, she cant because she has bad credit.
                            3. If she feels entitled to my money now that Im more successful than her, shouldnt the logic be the same during the times when she made more money than me?
                            4. Why would I contribute to a mortgage for a house i cant live in and a car I cant use? If I had been contributing the whole time, she would have to buy me out during the divorce anyways. For the last 6 years Ive tried to convince her to sell all our assets and split the debts but she wants all the assets while having me pay half the debts.

                            5. I dont want profits from her home business. I just want to know if Im entitled to profits from her business that I helped her start. This way if she says that i owe her money for this and that, I can fire back and say well you owe me for this and that. I want to use it as a deterrent.

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                            • #15
                              It's the matrimonial home, isn't it. So you both get half no matter who paid into it. (I'm assuming that this is at the date of separation, but who knows.) So if there is equity in the home you should get half. If it's debt, I guess you would get half as well.

                              How much equity was in the home when you separated?

                              Comment

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