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  • Matrimonial Home

    Situation:

    -STBX asked for a separation on August 15/21
    -We bought the house for $378K in August 2018 and were married at the time
    -We currently owe $286k on the mortgage
    -Today a realtor came in for an inspection and value the house at $565k
    -STBX Mother is on title of the home and the agreement was that if we couldn't pay mortgage payments she would be liable

    Is the Property Value split 3 ways? Or because it's a Matrimonial home, is it split 50/50

    I cannot find anything on the internet breaking down the equalization with 3 owners on title.

    Any input is greatly appreciated.

  • #2
    How is title held?

    3 persons, joint tenancy? or tenants in common, percentage shares?

    does your MIL live in the home or does she hold title only as a trustee? did she provide any funds to close the purchase, and/or maintain the property?
    Start a discussion, not a fire. Post with kindness.

    Comment


    • #3
      Originally posted by mcdreamy View Post
      How is title held?

      3 persons, joint tenancy? or tenants in common, percentage shares?

      does your MIL live in the home or does she hold title only as a trustee? did she provide any funds to close the purchase, and/or maintain the property?
      When I had a Real Estate Agent come for a walk through of the house, she provided me with a booklet. The booklet has Mother In Law, My name and Wife's name under "Owners"

      MIL has not lived in the house. My wife was finalizing a settlement of 60K that wasn't finished at the our houses closing time. MIL lent the 60k and my wife reimbursed the money when she got her settlement.

      MIL never made a mortgage payment or purchased anything for the house that wasn't a "gift"

      MIL asked me to do a Marriage Contract which I agreed to do but she never followed through with it. There was something about her getting a lawyer to do the paper work and I would need my own lawyer for filing/signing.

      Like I say, she didn't follow through with the Marriage Contract even though I would followed all procedures if presented to me.

      Comment


      • #4
        Below is the actual email from a joint lawyer at the time of the Matrimonial Home's Purchase

        Good Afternoon Everyone,

        I just spoke with MIL's and suggested that a sending email to the three of you so that we are all on the same page in respect of the funding for your purchase.



        I understand that plan is for MIL to only go on title as a cosignor to the mortgage so that the two of you can qualify for the same. I understand that the intended is that STBX and MAKING SENSE OF IT ALL will be responsible for the entirety of the cost of maintenance of the property, all expenses related to it, and making sure all of the mortgage debts are paid. In exchange for doing that, MSOIA and STBX will have true beneficial ownership of the property, and MIL will only be on title for the purpose of qualifying for the mortgage.



        I can draft an agreement to this effect with all of your consent.


        As you may know, since I am acting for all of you in this transaction, there must be total transparency between the four of us in relation to anything governing the property, any agreements that we draw up, and the mortgage. Additionally, I will be acting for the mortgagee (the bank), and will need to disclose to them anything that could affect their security interest in the property.



        It may be the case that STBX equalization payment from her former spouse is not available to close the transaction, at which point MIL has agreed to supply the “bridge” financing required to complete the transaction. MIL may wish to discuss with MSOIA and MSTBX an amount of interest payable to you for the bridge financing, if she chooses to advance monies and collect interest. Please let me know the amount of interest you agree upon, if this is the case.



        One of the things that bank wants to be sure of is that there is no secondary financing secured against the property on closing. This would mean that MIL most secure option, securing the property by way of a mortgage, to ensure payment or recovery of her funds loaned if STBX's equalization payment is not received ahead of closing, is not an actual option since this would invalidate your ability to obtain a mortgage from the bank.

        What would happen instead is that if MIL provided MSOIA and STBX with the bridge funds to close the transaction, we would build the repayment into the Ownership Agreement, however MIL would be exposed to the priority debts of other creditors in the event that MSOIA and STBX did not make payments under mortgage, for example, and she was left to seek recovery against MSOIA and STBX. MIL would only have the ability to commence an action in court and try to obtain a judgement in her favour – she would not be entitled to liquidate the property as would someone under a mortgage.



        Once the ownership agreement is drawn up in draft it may be prudent for MIL to take it to a lawyer of her choosing to advise her of the implications of entering into the agreement.



        I can prepare a simple draft agreement for your review and approval, and this can then be modified to accommodate any changes that you require.



        If the three of you consent to me proceeding as I have outlined in this message, kindly respond to this email with your agreement in relation to the proposal outlined herein at your earliest opportunity so that I can take the appropriate steps to draft an agreement.

        Comment


        • #5
          A proper answer is going to go beyond the scope of this forum. You need a lawyer to assist you.

          There is no easy answer because the outcome depends on:
          • Who paid what
          • The availability of records of payment to prove the above
          • The passage of time
          • The will of parties to fight or not


          There will also be other non MH issues to address, that may impact the above.

          The MIL could be a 1/3 owner, or may only hold legal title but not a beneficial interest. The beneficial interest is where the value is.

          The fact that the lawyer sent that email, but that an agreement was never drafted/signed could work against you. Also something to run by your own lawyer.

          Comment


          • #6
            Thank you for your input. I have a meeting with a Lawyer coming up. I also found the draft which is:

            1. Title to the Property is held by all parties hereto as joint tenants.

            2. Me/STBX are the beneficial owners of the property.

            3. MIL has no interest in the Property and, except in her capacity as guarantor on
            the mortgage to the Scotia Mortgage Corporation, or any other mortgage, no obligation
            whatsoever with respect to costs associated with ownership such as taxes, insurance,
            mortgage payments, utilities, maintenance and repair.

            4. Me/STBX agree to indemnify and save MIL harmless of and from any
            obligations, costs, or claims she may legally assumed by having her name registered as
            co-owner of the Property.

            5. At the request of ME/STBX, MIL will release and quitclaim all right, title and
            interest she may have in the property to ME/STBX as they may direct.

            6. In the event that MIL lends money to cover the cost of closing the transaction,
            ME/STBX agree to pay the said amount to MIL, and to treat the loan as if it were
            a mortgage, meaning that if the property were sold, MIL would be entitled to
            receive the proceeds of sale, if any money is still owed to her from the loan, second to
            any lender secured on title, in priority to any proceeds of sale being provided to the ME/STBX

            7. ME/STBX further agree that if MIL has loaned them any funds to close the
            transaction that they shall disclose this fact to the lender, and that such loan, if it exists,
            will be paid out from STBX settlement proceeds received from her separation from
            her previous partner (the “settlement proceeds”). Further, if such a loan is required,
            STBX will execute an irrevocable direction to her solicitor and family lawyer directing that the loan be paid out from her settlement proceeds.

            8. By executing this Agreement the Parties acknowledge being advised that they ought to
            receive Independent Legal Advise prior to its execution, and confirm that they have had
            the opportunity to do so and have either obtained such Advise, or, by executing this
            Agreement are waiving their right to do so, having had the opportunity to obtain the
            same.

            9. The provisions of this agreement are binding on the parties hereto their heirs, successors
            and assigns.

            STBX settlement came after the closing of the MH Sale. We paid MIL back but no paperwork was completed to state that.

            Comment


            • #7
              I think you have another thread here on this issue.

              What I see is this…

              The intention was for you to sign an agreement that your ex would receive her 60k back if you didn’t stay together. MIL loaned it, and your ex paid her back. It wasn’t your money.

              MIL does not get 1/3 of the house sale profit. She loaned 60k the. Got it back.

              Sell the house. Give your ex her 60k, then split the rest of the profit.

              Seems simple to me. Unless of course your ex is trying to give 1/3 to her mother. Or if you are trying to get 1/2 of that 50k that was never yours.

              That’s all really just my opinion, based on my experience with someone in a similar situation.

              Comment


              • #8
                I think you have another thread here on this issue.

                What I see is this…

                The intention was for you to sign an agreement that your ex would receive her 60k back if you didn’t stay together. MIL loaned it, and your ex paid her back. It wasn’t your money.

                MIL does not get 1/3 of the house sale profit. She loaned 60k then got it back.

                Sell the house. Give your ex her 60k, then split the rest of the profit.

                Seems simple to me. Unless of course your ex is trying to give 1/3 to her mother. Or if you are trying to get 1/2 of that 60k that was never yours.

                That’s all really just my opinion, based on my experience with someone in a similar situation.

                Comment

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