Net family property and the equalization payment

[jsmith]

Help! I can't open the ZIP file, I tried Winzip and it gives error!
Thanks

[Kinso]

3. Do I need legal document from lawyer?

You need advise and documents from a lawyer. Your situation has layers of complexity.

[audrewh]

about separation agreement

Here is the case:
1. We have a matrimonial home with heloc and mortgage on it.
2. I have another condo and semi-detached house.
3. Ex has other investment

The only asset we should split is matrimonial home. Since I have sole custody of child, I will take over matrimonial home to help my child stay the same house. To be able to buy him out, I need to sell my condo and let him take over the semi-detached house at the estimated market value in Nov. 2019. The agreed settlement date is August 2020.

Due to COVID situation and I am not able to sell condo before August 2020, we agreed to postpone the settlement date to Jun 2021. Here are two questions:
1. Can I request the settlement date to be postponed again with the COVID getting worse?
2. Should those property numbers to be recalculated based on current market value and remaining mortgages?
3. Do I need legal document from lawyer?

[EspoirN]

Could you explain lines 85, 86, and 87?

So my question is, why does the spouse owe you for the mortgage principal payments, property tax payments and house insurance payments since separation? I thought that it was up until the separation date. Please explain.

[toby]

Interesting spreadsheet. Thanks. Has this calculation passed review by a lawyer? That is, can people place faith that it will pass muster in their legal negotiations?

[DeadBeatDouchebagDad]

Equalization | CLEO (Community Legal Education Ontario / Éducation juridique communautaire Ontario)

Special rule for matrimonial homes:
When calculating a spouse's NetFamilyProperty, the value of his or her property on the date of marriage does not include any home that is a matrimonial home on the date of separation. This means if the same spouse still owns the home on the date of separation, his or her NFP will include the home's entire value, not just its change in value during the marriage. This can have a big effect on how much the equalization payment will be, or who must pay it.

--------------

Regarding the above, does this mean that when calculating equalization, the matrimonial home is not factored into the assets/liabilities for either spouse on the date of marriage? The total value of the home is imputed for whomever owns the home on the date of separation (if a valuation was done soon after separation)?

Here's my struggle: common law couple X and Y live in a home for 10 years. 1990-2000. Home is in X's name, both X and Y make monthly payments towards mortgage. In 2000 they get married and X puts 60k to pay down mortgage; the value of home is 300k and mortgage left is 100k. Seems to me that equity should be $200k on X's side on date of marriage.

Fast forward 5 years, the title of the home is transfered from X to Y. Fast forward another 5 years, X and Y divorce/separate, the value of the home is $600k.

So according to the above link, none of the figures I mentioned on the date of marriage are relevant to the assets/liabilities calculation on the date of marriage, and in this case Y will get imputed $600k into their assets side of the equalization calculation.

Is this accurate?

[looloo]

hi - my Ex and I seperated Summer 2010. Divorce was finalized Early 2012. I had been paying all the expenses since the date of separation. The house was appraised one month prior to the date of separation. Am I to use that number to determine the equalization payment?

Can someone argue the date of separation now that the divorce has been finalized?

[metro]

I can't understand why the Ontario law would be setup so that someone could be entitled to half the house equity that was made before marriage! That law seems like it would cause a lot of people to marry under false pretenses in hope of taking someones hard earned money. Thank god I live in Alberta where they use the value at marriage to determine the baseline to split. If it goes up from that then you split half. If it goes down then you both split the decrease.

I totally agree with you.

[metro]

Can anyone with knowledge of this matter respond and confirm this? Does the spouse that continues to pay the mortgage + property taxes and house insurance benefit from the reduced principal and tax and insurance payments from the time of seperation to the time of sale of the matrimonial home?
Makes perfect sense. Answer please.

I believe that equalization only deals with the equity of the house at the separation...unless parties agree to share sales profit and deduct all the cost paid after separation. Or, if a spouse stays home but the only the other spouse keeps paying all the bills for the house, interest, hydro,gas, and tax...that can be claimed as "occupancy rent", but you need to have this on your application.

[SugarMommaNOT]

Unfortunately even if you live in Alberta sometimes the matrimonial property that you brought into a marriage still isn't safe.
I bought a house prior to our marriage but my STBXhusband has had a wacko interpretation from a lawyer that says he is entitled to half of it anyway. We were trying to negotiate our separation agreement without lawyers as there are few assets and no kids, but he is being unreasonable and refuses to acknowledge the law so we are going to have to go through collaborative law (I hope) to come to a compromise.

Really, even though the law says it is exempt property people will still try to take it off you!!

[locoroco]

I can't understand why the Ontario law would be setup so that someone could be entitled to half the house equity that was made before marriage! That law seems like it would cause a lot of people to marry under false pretenses in hope of taking someones hard earned money. Thank god I live in Alberta where they use the value at marriage to determine the baseline to split. If it goes up from that then you split half. If it goes down then you both split the decrease.

[thethanksiget]

This makes sense - is it correct? Anyone?

So - is this how it should work??? I'm using round numbers for simplicity

2010 I paid $250,000 for the house - had a mortgage of $100,000., therefore equity of $150,000 - split 50/50 my equity $75,000, ex's equity at time of separation $75,000

2011 sold house for $252,000 - mortgage $98,000., total equity of $154,000 - ex's portion $75,000 (as it was at date of separation), mine $79,000. (this is where I recoup my principal paid), property taxes paid should be added on separately thru adjustments?

the 50% calculation will be based on the value of the house at time of separation - not what I sold it for ...the extra profit (the way the law reads) is mine.........any monies put into the house during the marriage - is 50/50 - regardless of who put what in.

thanks in advance for your help

Can anyone with knowledge of this matter respond and confirm this? Does the spouse that continues to pay the mortgage + property taxes and house insurance benefit from the reduced principal and tax and insurance payments from the time of seperation to the time of sale of the matrimonial home?
Makes perfect sense. Answer please.

[dadtotheend]

Yes, I took on the whole mortgage 3 1/2 years ago when I bought her out.

[paxton]

Just looking at your excel spreadsheet - wondering since you're buying her out on the matrimonial home, does that mean you take on the entire mortgage (your half and hers?) I see the net equity adjusted for home in equalization but just not sure if that means you take on the whole mortgage - hope this makes sense...

[cory]

So - is this how it should work??? I'm using round numbers for simplicity

2010 I paid $250,000 for the house - had a mortgage of $100,000., therefore equity of $150,000 - split 50/50 my equity $75,000, ex's equity at time of separation $75,000

2011 sold house for $252,000 - mortgage $98,000., total equity of $154,000 - ex's portion $75,000 (as it was at date of separation), mine $79,000. (this is where I recoup my principal paid), property taxes paid should be added on separately thru adjustments?

the 50% calculation will be based on the value of the house at time of separation - not what I sold it for ...the extra profit (the way the law reads) is mine.........any monies put into the house during the marriage - is 50/50 - regardless of who put what in.

thanks in advance for your help