Utility Bills

[Unsure81]

Hi everyone,

I have searched high and low and can't seem to find the answer to my question...

My (now) ex and I purchased a house together almost 8 years ago, both are on the mortgage. We are separating and I am moving out. He will be residing in the house until it sells. I realize I will likely have to pay half the mortgage until it sells, but who is responsible for paying the utility bills for the house (oil/hydro, etc)? He thinks I need to pay half of all bills because I am leaving, though I don't see how I should have to if I am not living there....

Any help would be greatly appreciated

[zenna70]

I moved out too...I had my lawyer draft letter stating he was responsible and if he failed to pay and jeopardize my credit rating that he would be responsible and would have to indemnify me. where you can and may be allowed (enbridge, rogers for example) have the company remove your name from the file. I know rogers did for sure.

[NBDad]

If you want claim to the increased value until the home sells, you need to pay your portion of the mortgage + whatever else is required to maintain the mortgage. (Typically home owner's insurance).

The utils are HIS issue as long as 1. They are not in arrears and 2. he's staying at the place.

He doesn't HAVE to stay. If he moved out as well those bills would not be needed at the level they are if someone lives there.

Get those utils placed in ONLY his name and require confirmation of same. (any balance owing on the current accounts will typically need to be paid in full before he can open a new account.) Pay for 1/2 of any arrears to be fair.

[Rioe]

My (now) ex and I purchased a house together almost 8 years ago, both are on the mortgage. We are separating and I am moving out. He will be residing in the house until it sells. I realize I will likely have to pay half the mortgage until it sells, but who is responsible for paying the utility bills for the house (oil/hydro, etc)? He thinks I need to pay half of all bills because I am leaving, though I don't see how I should have to if I am not living there

If you are officially separated and are moving out, you are no longer responsible for any expenses for that home. Change all the utilities into his name, and if they won't let you, just cancel your account and let him start up one in his own name. I would even try to include the mortgage. Your share of the home is calculated as of date of separation, so if you pay the mortgage after that, you aren't accumulating any asset. The problem with this, however, is that if your ex is a jerk, he may not pay the mortgage in full, and this could seriously impact your credit rating. If you feel you have to pay the mortgage to avoid this, definitely charge him occupational rent as part of your separation agreement to recoup those mortgage payments you make after you move out.

[Unsure81]

Do we have to complete a separation agreement to be 'officially separated'? Or is me moving out enough?

[zenna70]

No it's not enough....a simple letter outlining letters of indemitis...credit ratings...ect... drafted by a lawyer will benefit you. If you want I can email you the "wording" used in mine...let me know

So you move out and he bounces a mortgage payment or two...your name is on mtg. Same with bills...it is your credit that is affected.

You must remain on the home insurance until you sell or are removed from title.
Remove yourself from his and him off yours for vehicle policies.

[zenna70]

FYI...I hand't removed my ex from my vehicle policy (forgot) numbnut put a huge claim through for his car and it affected my rating!!!! I had to fight with my insurance company to get my 6 star rating back. little things like that can cost you $

[Unsure81]

Thanks zenna70 that would be greatly appreciated

If he suddenly changes his mind about staying in the house and decides to move out as well, I would assume that in that scenario we would be forced to split the utility bills until the house sells?

[blinkandimgone]

If he decides to move out, why wouldn't you decide to stay?

[Unsure81]

I can't afford it on my own or I definitely would....the separation was my choice and he is the type of person you may just 'show up' or drive by and I'd rather not deal with that.

[dinkyface]

You continue to pay your share as if you were still living there ... AND ... he also pays you to compensate for your loss of use of the place (which should cover your shelter expenses somewhere else).

This is called 'occupational rent'.

That's the 'theoretical' way it works.

Then you could just agree that these 2 items cancel each other out. I'm not sure if this 'canceling out' has any impact on your eventual share of the home equity (e.g. your participation in house value increase/decrease after separation date).

In any case, as long as your name is on the mtg, your credit rating is at his mercy. Possibly you can arrange that you pay all of the mtg and he pays all utilities/insurance/property tax, plus your occupational rent?