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We have two homes for sale one is the matrimonial the other a rental home...the rental is free of any debt and has just sold...does this money have to be used to pay off of the debt for the matrimonial home...my ex is living in the matrimonial home and and this would clearly benefit him as he is only paying the interest on the line of credits on the house...where would the incentive be to sell the home if he is living there pretty darn cheap?
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No no no no no.
From the date of marriage to the date of separation you look at the increase of your net asset for each of you and anything joint. You subtract debt, but you do not go below zero.
Split the net increase in asset during the marriage to get the amount each of you should walk away with.
Now look at what each of you have, one will be sitting on more. So that person makes an equalization payment. It can be any form that the two of you agree on, like letting him keep the house, you keep the cash, etc.
He is sitting in the matrimonial home, this means nothing. The home has an assessed value, minus the mortgage owing. So this net value is something in his possession at the moment. Let's just say the net value is 200k.
What is the total amount of other assets? Let's just say that the net value is 400k, because you sold a home that you had been renting out, plus a few other assets like RRSP and such.
The total asset is 600k (let's suppose). Half of that is 300k each. As said earlier, he's sitting in 200k worth of house, so he gets 100k cash to equalize, you get 300k cash. He can put his cash against the mortgage if he wants.
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