Can we just agree on a payout on the matrimonial home?

[opallemoon]

I am currently trying to buy my ex out for his half of the house. We have been separated for four years and fortunately it’s been very amicable between us. When we did our separation agreement we just downloaded a template online and filled it out, as neither one of us wanted to go through a lawyer.

We have shared custody it’s 50/50 and we feel we contribute equally to our kids. We make roughly the same amount of money. Our agreement states we will split child costs equally but we didn’t itemize because we wanted to keep things simple.

Originally I was to keep the house until our oldest graduated, but he has run into some financial difficulty and asked for his half of the house now and I’ve been trying to refinance to pay him. I needed a home equity loan as my normal income isn’t good enough for a bank.

We both agreed to make the payout half of what we would be left with if we sold. This included paying off mortgage paying penalty for early withdrawal and paying a realtor to sell the home. The amount came to 50 000 He is fine with that and I am fine with that.
However, in order to get the home equity loan I pulled in every favor I had to get the house fixed up so it’s value would increase and my equity would be higher. I used my money to do this. It worked and the house has been assessed much higher than the first appraisal, because of this I am able to get the money he wanted, provided we get our separation agreement signed off by lawyers and an amendment to it stating the payout. I’ve already talk to some lawyers and I can’t stand the adversarial approach they take. We have a very good arrangement that I feel is the best solution for my kids.

So my question if we both agree on the amount does it matter what the house is worth? Can he not choose the amount he wants his payoff to be or are we forced to use the current value, which would mean I wouldn’t qualify. My ex is completely on board with the original payout and doesn't want more.

[billiechic]

If you have been living in the home and paying all the bills then you should value the home as the date you separated. This is a fairly common practice. He is entitled to half of the equity in the home on the date of separation. It is not likely that a judge would give him more than that.

Congrats on being able to keep your separation amicable. I hope this works out for you as well.

[opallemoon]

Thank you for your response.

I had a meeting with lawyer this morning and am posting her answer in case anyone else is wondering the same thing.

As long as both parties agree you can have the payout at any amount, even 1$. The party that is "selling" their equity has to sign off on it, acknowledging that he has received counsel and knows what his/her rights.
are.

The only thing the courts will not accept is agreements regarding child support that don't meet the guidelines. Other than that if two parties can come to their own arrangements.

(Should be noted I'm from Alberta - might be different elsewhere)

[billiechic]

That's pretty standard. Each party does have to have independant counsel though, not just sign off on it. Make sure you each have your own lawyer look at it, or you could end up back in court later on.