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Occupational Rent

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  • Occupational Rent

    Hi, I am trying to research Occupational Rent for upcoming court dates.

    My wife walked away from the matrimonial home, marriage, and took our daughter (3.5yrs) with her. In doing so she also walked away from all our jointly signed debt responsibilities...leaving me paying for them all. This is the mortgage, personal loan, two lines of credit, property taxes, home insurance, home maintenance costs, life insurance, gym membership fees, everything.

    At the first Case Conference (mid Jan/09) I agreed to put the matrimonial house for sale. Currently it still has not sold due to the current economic times. Also at the Case Conference I was ordered to pay minimal spousal support in addition to guideline child support.

    I have been paying guideline child support (748/m) and all bills since the separation (Aug/08). I have indicated I cannot pay spousal support until the house sells due to our joint debt obligations that I have been paying 100% of (I simply do not have the money for spousal support). My wife currently does not work and has indicated she can never work again in her life to the courts (which they currently are accepting...and is another issue).

    Her lawyer took me to court in Feb for not paying spousal support where the court ordered me to pay 1,500/m spousal support in addition to guideline Child Support. I was also ordered to pay her legal costs amounting to 1,800 within 45 days. The FRO is also now involved. Also my lawyer is no more and I am now self represented due to financial constraints. BTW the OCL is involved regarding custody per my request.

    The result was I was unable to pay the mortgage, loan, property taxes, and LOC's for several months (all legally jointly held debts) because I had to pay her lawyers costs. After the creditors started calling me (and her) for payment I received a letter from her lawyer indicating if I did not bring the accounts in good standing action would be taken against me. I had to borrow a large sum of money from a friend to bring all debts into good standing who I now owe. I also owe my former lawyer a great deal of $$$ (he got me nowhere but sCrewD!!!)

    I have been unable to pay the spousal support order due to the large amount joint debts we have (as the house is still for sale). My employment is conditional on maintaining my financial obligations...if I cannot its considered just cause for my termination (FOR REAL!!!).

    My understanding is the mortgage is considered occupational rent on the matrimonial home we both own, and are on title for. What about the rest of the debts i mentioned? Surely she is on the hook for half of them.

  • #2
    Did you have financial problems before she walked out? Is that why she walked out?

    She is responsible for half the debt.

    Last edited by FreeNow; 05-12-2009, 08:14 PM.


    • #3
      Hi, yes we had financial issues leading up to the separation (she liked to spend); I did make her aware in June that we would be out of money by August. This is one possible reason for her leaving but not the main ones.


      • #4
        why do people let themselves get so deep in debt in the first place? She maybe liked to spend but if they are joint debts then you allowed it also. She should be on the hook for half though so the longer it waits the longer you have to pay. I would have ignored her lawyers letter about how you better get the accounts in good standing. I am thinknig that he could not have done any thing anyways. I would either try and work out someting with the creditors, explain your situation to them and tell them that either they work with you and get what is owed or you will claim bankrupcy and they will get nothing.

        What does your personal debt problems have to do with employment?? Are you saying that if you do not handle your debts and keep your creditors happy, that your work can fire you?? Stangest thing I have heard in my life but I guess if you were in the financial field then it would be understanable. I would not trust someone who cannot handle his own money to handle mine.


        • #5
          Hi, the debt was manageable and was in the process of being turned around and yes it is both our responsibilities...what is making it now unmanageable now is the 1,500/m in spousal support I have been ordered to pay in addition to the child support (748/m) and all the rest of the joint debt. When the matrimonial home sells (consists of 90% of our debt) the remaining debt burden will be easily manageable...but until then I am exposed...yes bankruptcy will cost me my career and very likely my I do not work with other peoples money.

          Her lawyer has already indicated the mortgage is considered occupational rent...I need advice on that topic as it is unfamiliar to me...perhaps links to sites I can further read/research to prepare myself for the inevitable court motion to address these issues.

          Thanks in advance all.


          • #6
            Here is a clause I found describing occupational rent:

            The right to an occupation rent arises when one party is actually or constructively excluded from his or her property. The party excluded may seek occupation rent from the party remaining in the property. A relationship breakdown will often be regarded as a constructive exclusion. In the domestic context, the right to occupation rent will frequently be cancelled out by a claim against the excluded party for re-imbursement of mortgage interest payments.
            When dealing with the issue of mortgage repayments as a discrete issue, the court may take into account both the capital and interest element of the mortgage payments made but sometimes will only take the capital payments into account.

            Claims for improvements to property will, save in the most exceptional case, be for post-separation improvements and will be for either a due proportion of the cost of the works or the increase in value, whichever is the lower figure.


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