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  • Interest on equalization payment

    Hi everyone,

    As some of you know I've been refusing to leave the matrimonial home until I get a good agreement with my ex unless he forces it to court He has an idea of what he thinks I'm owed re: equalization and I have a different idea.

    I read about receiving interest on equalization payments. Would I be able to request for that? My ex says that any equalization he owes me will be given to me from the sale of the house but based on his financial disclosure he has more than enough to pay me if he sold off his investments.

  • #2
    Originally posted by trueblue22 View Post
    Hi everyone,

    As some of you know I've been refusing to leave the matrimonial home until I get a good agreement with my ex unless he forces it to court He has an idea of what he thinks I'm owed re: equalization and I have a different idea.

    I read about receiving interest on equalization payments. Would I be able to request for that? My ex says that any equalization he owes me will be given to me from the sale of the house but based on his financial disclosure he has more than enough to pay me if he sold off his investments.
    Interest usually only occurs after an order is issued for equalization. The person who has the balance of the equalization may be hit with interest if the equalization payment is not made in accordance with the court order.

    As neither of you know what the actual equalization how can interest be accumulating on something that is unknown?

    Comment


    • #3
      You also arenít entitled to interest on back equalization that you claim he owes as it was never agreed to or ordered.

      With respect to the investments, he would incur the taxes/penalties from selling his investments and itís unreasonable for you to expect him to incur those costs when selling the home comes with less costs. If you hold out on an agreement because you think he should sell investments in stead of the house, you demonstrate you are unreasonable.


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      • #4
        Originally posted by Tayken View Post
        Interest usually only occurs after an order is issued for equalization. The person who has the balance of the equalization may be hit with interest if the equalization payment is not made in accordance with the court order.

        As neither of you know what the actual equalization how can interest be accumulating on something that is unknown?
        We have never been to court and there has been no court order for equalization. I thought that once we figure out an agreeable equalization amount I would be able to request interest on that amount for the last 5 years that I have not received it.

        Comment


        • #5
          No you canít request historical interest on an order that is given now. The date on the order would be now and interest is not owed.

          As many of us previously told you, you agreed to the status quo the last five years. You got the house and he paid all your bills. You agreed to that by accepting it. You canít come back now and say ďoh hey I want interest because you should have been paying me moreĒ.


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          • #6
            I have been embroiled in litigation for ten years now. If by some miracle he were to accept one of my multiple offers to settle then he would not have to pay costs or interest unless I factored either of those into the offer. However, if we go to arbitration/ trial then he would have to pay interest AND costs. We are asking for interest and do expect to get it at arbitration. He has had the use of my money and the children’s money for ten years and profited from same while the children and I have suffered due to his unwillingness to settle. Courts do take this into consideration, especially when there is a protracted history of bad faith behaviour by the losing party.

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            • #7
              Originally posted by Stillbreathing View Post
              I have been embroiled in litigation for ten years now. If by some miracle he were to accept one of my multiple offers to settle then he would not have to pay costs or interest unless I factored either of those into the offer. However, if we go to arbitration/ trial then he would have to pay interest AND costs. We are asking for interest and do expect to get it at arbitration. He has had the use of my money and the childrenís money for ten years and profited from same while the children and I have suffered due to his unwillingness to settle. Courts do take this into consideration, especially when there is a protracted history of bad faith behaviour by the losing party.

              Yes but your case involves interest from the start of litigation/temporary orders. OP wants to agree to a set amount of spousal support going forward from now and then say he should have been paying that since she locked him out of the house and claim he owes her interest on that. There was no original court action, it was an agreement between the parties that was supposed to be short term.


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              • #8
                From what I have seen, post-judgement interest is often applied. However, pre-judgement interest is rarely applied.

                The only time I seem to see pre-judgement interest ordered is when the payer knew that the money would be owed, but tried to stall.

                Comment


                • #9
                  Originally posted by Janus View Post
                  From what I have seen, post-judgement interest is often applied. However, pre-judgement interest is rarely applied.

                  The only time I seem to see pre-judgement interest ordered is when the payer knew that the money would be owed, but tried to stall.
                  What would be considered attempts to stall? I am living in the matrimonial home but he knows he can force me to sell but he hasn't taken any action by taking me to court to force the sale of the home. He knows I want to be paid out first before I agree to sell the house but he won't pay me unless it's using funds from the sale of the house. I don't care if he doesn't want to pay taxes on his investments by taking out the money from those accounts. Does he have a right to decide which assets he needs to sell to give me my money or is it unreasonable for him to insist he only wants to use MH funds?

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                  • #10
                    Originally posted by Stillbreathing View Post
                    I have been embroiled in litigation for ten years now. If by some miracle he were to accept one of my multiple offers to settle then he would not have to pay costs or interest unless I factored either of those into the offer. However, if we go to arbitration/ trial then he would have to pay interest AND costs. We are asking for interest and do expect to get it at arbitration. He has had the use of my money and the children’s money for ten years and profited from same while the children and I have suffered due to his unwillingness to settle. Courts do take this into consideration, especially when there is a protracted history of bad faith behaviour by the losing party.
                    I haven't been to court yet but that is my biggest fear. I don't want to end up in a situation where I have no assets, everything is tied up in trust meanwhile my ex is still making 500k+ a year and my business revenue has dried up. He would bankrupt me into giving up.

                    Comment


                    • #11
                      Originally posted by trueblue22 View Post
                      What would be considered attempts to stall? I am living in the matrimonial home but he knows he can force me to sell but he hasn't taken any action by taking me to court to force the sale of the home. He knows I want to be paid out first before I agree to sell the house but he won't pay me unless it's using funds from the sale of the house. I don't care if he doesn't want to pay taxes on his investments by taking out the money from those accounts. Does he have a right to decide which assets he needs to sell to give me my money or is it unreasonable for him to insist he only wants to use MH funds?

                      Not working on a reasonable settlement or refusing to agree to sell the house. You canít afford to buy him out but you want him to sell his investments at a cost to buy you out. He can force the sale of the home and he may simply be trying to work through the process before filing a court action. He is not stalling, you are. You have drawn a line in the sand saying I wonít agree to sell and you owe me money. He is more than likely discussing his options with his lawyer and getting his ducks in a row. Meanwhile you are saying no to everything.

                      When there is matrimonial property in play then yes he can choose to say he wonít pay you out with anything but the house because he owns it. Not to mention that you may not be entitled to this windfall you think is yours. What will you do when he does file with the court and heís calculated that you owe him money? And what happens when you end up with nothing but a big legal bill because you were being unreasonable?

                      Stop bitching about his income and investments. You CHOSE to quit your job and open a business that is losing money and hire your new partner with a salary to him. That was your stupid financial decision that your ex is not responsible for. You also have chosen to be unreasonable about moving on and selling the house. Thats not on him. He wants it sold and the longer you battle over an asset you canít afford, the more money you pay out in the end.


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                      • #12
                        Originally posted by rockscan View Post
                        ... he may simply be trying to work through the process before filing a court action. He is not stalling, you are.
                        It's in OP's best interest to file, not ex. He may simply be waiting a few more months for the equalization limitation period to expire. They're both stalling, but it'll benefit ex in the end.

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                        • #13
                          Originally posted by StillPaying View Post
                          It's in OP's best interest to file, not ex. He may simply be waiting a few more months for the equalization limitation period to expire. They're both stalling, but it'll benefit ex in the end.
                          Bingo. There is an equalization limitation. OP should really be making a move on something. Either filing or something. The other party in the matter probably has good legal counsel. So good they don't need to come here to try and get answers.

                          https://www.ontario.ca/page/dividing...20to%20do%20so.

                          If you need to go to court for a decision on the amount of an equalization payment, you have six years from the day you separated, or two years from the day your divorce is final (whichever comes first) to do so.

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                          • #14
                            Originally posted by Tayken View Post
                            Bingo. There is an equalization limitation. OP should really be making a move on something. Either filing or something. The other party in the matter probably has good legal counsel. So good they don't need to come here to try and get answers.

                            https://www.ontario.ca/page/dividing...20to%20do%20so.
                            I did speak to my lawyer about this. They said they could just get an extension.

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                            • #15
                              Originally posted by trueblue22 View Post
                              I did speak to my lawyer about this. They said they could just get an extension.

                              Remember your lawyer gets paid no matter what the outcome is. If they fight fir an extension and they lose, you lose money on the fees and the clock keeps ticking.


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