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  • Matrimonial Home

    I am in Brandon,Manitoba. Seperated for 2 years from Ex,2 kids in 50% custody, i stay with my parents . Matirmonial Home is in joint name and I pay all utilities and mortgage payments.
    Ex has locked me out and refuses to sell home.
    She isnt working so wont qualify for mortgage and doesnt want to sell the home.Home is worth about 900 k .Mortgage is 300k .
    She claims she will get 500k equalization payment from me for other properties and refuses to sell the matrimonial home . As my lawyers calculation , she is entitled to 200k in equalization payments and I am open to paying her this . She says she she will sell the home only after everything is done and equalization payments done. My equity is trapped in the home .

    1) Who gets the home when both partners cannot decide.Can the courts order me to compulsorily transfer the my stake to her in lieu of equlaization payments. I really would like the matrimonial home as I built it from scratch .

  • #2
    The will need a bit less than 300k mortgage, as lawyers (at least in Ontario) do count 5% + HST cost of sell with an agent, so if house worth 900k, the agent fee would be around 50K, divided between parties. So whoever buys the house would need to present only 275K. If she per even your own lawyer statement is eligible to 200k, and she claims 500k, the 75K gap isn't that big, and remember she gets from you 7K a month now for kids - she could easily save 75K in just one year.

    I guess if both parties really have attachment to the house the only option is to put it on the market and whoever bids higher gets it. Ideally you would want to agree with her on this without trip to court, as it is just too long and expensive.

    Comment


    • #3
      Originally posted by AlexLitty View Post
      I am in Brandon,Manitoba. Seperated for 2 years from Ex,2 kids in 50% custody, i stay with my parents . Matirmonial Home is in joint name and I pay all utilities and mortgage payments.
      Ex has locked me out and refuses to sell home.
      She isnt working so wont qualify for mortgage and doesnt want to sell the home.Home is worth about 900 k .Mortgage is 300k .
      She claims she will get 500k equalization payment from me for other properties and refuses to sell the matrimonial home . As my lawyers calculation , she is entitled to 200k in equalization payments and I am open to paying her this . She says she she will sell the home only after everything is done and equalization payments done. My equity is trapped in the home .

      1) Who gets the home when both partners cannot decide.Can the courts order me to compulsorily transfer the my stake to her in lieu of equlaization payments. I really would like the matrimonial home as I built it from scratch .

      There’s a few threads on this. You could file for an order to sell the home. You will need to get on it though.

      Comment


      • #4
        Originally posted by respondent View Post
        The will need a bit less than 300k mortgage, as lawyers (at least in Ontario) do count 5% + HST cost of sell with an agent, so if house worth 900k, the agent fee would be around 50K, divided between parties. So whoever buys the house would need to present only 275K. If she per even your own lawyer statement is eligible to 200k, and she claims 500k, the 75K gap isn't that big, and remember she gets from you 7K a month now for kids - she could easily save 75K in just one year.

        I guess if both parties really have attachment to the house the only option is to put it on the market and whoever bids higher gets it. Ideally you would want to agree with her on this without trip to court, as it is just too long and expensive.
        Thank You , She argues that the courts are bound to order me to transfer my equity to her even if i dont agree . Is this BS ?

        Comment


        • #5
          Originally posted by rockscan View Post
          There�s a few threads on this. You could file for an order to sell the home. You will need to get on it though.
          Thank You , I asked my lawyer and was told that there is a risk that courts might give her interim exclusive possession pending resolution of the matter as she will claim that she has nowehre to go .
          Thoughts on this ?

          Comment


          • #6
            She probably will be given exclusive possession but it also gets the case moving and forces her to get her shit together. Plus it clearly lays out what she can and can’t do and what you have to pay for.

            Comment


            • #7
              Originally posted by rockscan View Post
              She probably will be given exclusive possession but it also gets the case moving and forces her to get her shit together. Plus it clearly lays out what she can and can�t do and what you have to pay for.
              Exactly my thoughts . My lawyer suggested that have an appraisal done and offer to buy her out with a offer through her lawyer with 5% premium above appraisal value . If she refuses to be bought out,then we can claim costs if the home is sold below my offer price on the market .Not sure if this strategy is correct ?

              Comment


              • #8
                The 5% premium is a nice offer but neither party is allowed to buy the other parent out unless it's agreed. I would save your money on appraisals unless your ex is actually willing to entertain the idea, but even still you'll most likely need another report at time of purchase/trial. Otherwise the house will be ordered sold and the equity split.

                Although ex basically has exclusive possession now, it's not easy to get ordered and it's only temporary until it's sold. Whether that's in 2 years after trial or sold now with funds held in trust until trial.

                Comment


                • #9
                  One of the dangers of forcing the sale of the matrimonial home is that the funds are not immediately divided up and given to each spouse. The funds are held in trust by a lawyer. If you and your spouse are still in disagreement after the sale then this leaves a huge amount of money in trust over which the lawyers are salivating. If your conflict goes on too long, neither one of you will get any of that money, only your lawyers will!!!!!

                  Comment


                  • #10
                    Originally posted by Stillbreathing View Post
                    One of the dangers of forcing the sale of the matrimonial home is that the funds are not immediately divided up and given to each spouse. The funds are held in trust by a lawyer. If you and your spouse are still in disagreement after the sale then this leaves a huge amount of money in trust over which the lawyers are salivating. If your conflict goes on too long, neither one of you will get any of that money, only your lawyers will!!!!!
                    unfortunately yes, it is true, especially because positions between parties are too different - OP says his lawyer calculated NFP payment at 200k, his ex claiming it is 500k, and if hypothetically they sold house for 900k on the open market with mortgage of 300k, likely lawyers would only release 300k, or 150k each. There is no strict rule, it is how much lawyers can agree on, but disputed money will be held in trust. Ideally, avoid this situation at all cost.

                    I do see more realistic scenario OP's ex would try to extend her free stay in a house for long period of time, and for free.

                    Comment


                    • #11
                      Originally posted by respondent View Post
                      unfortunately yes, it is true, especially because positions between parties are too different - OP says his lawyer calculated NFP payment at 200k, his ex claiming it is 500k, and if hypothetically they sold house for 900k on the open market with mortgage of 300k, likely lawyers would only release 300k, or 150k each. There is no strict rule, it is how much lawyers can agree on, but disputed money will be held in trust. Ideally, avoid this situation at all cost.

                      I do see more realistic scenario OP's ex would try to extend her free stay in a house for long period of time, and for free.
                      1) The difference is because these are corporate investments through my holdco . There is a tax component to it , its pre tax income saved in a corporation .It is 53% tax at highest bracket if I draw it out as income and transfer to her and 200k debt of the corp. They want to disregard debt of the corp which was used to purchase investments . There number is 500k .Ours is 200k as there is 100k debt deducted and taxes . Like she claims , taxes dont need to be paid as it will sit in corp for a long long time . Not sure how to sort this out.

                      Comment


                      • #12
                        Originally posted by AlexLitty View Post
                        1) The difference is because these are corporate investments through my holdco . There is a tax component to it , its pre tax income saved in a corporation .It is 53% tax at highest bracket if I draw it out as income and transfer to her and 200k debt of the corp. They want to disregard debt of the corp which was used to purchase investments . There number is 500k .Ours is 200k as there is 100k debt deducted and taxes . Like she claims , taxes dont need to be paid as it will sit in corp for a long long time . Not sure how to sort this out.
                        The main aspect of it is there are two different opinions - the moment it happens there is a chance proceeds from sale of matrimonial home (all or in part) will be frozen.
                        But from what I am getting chances are your ex would be delaying selling home as much as she can, as for her it is life rent free at the moment. Try achieving NFP before you sell home. You can leave pain points like support adjustment etc. for a separate discussion.

                        Comment

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