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  • sale of shared home

    I was common law with my ex for 10 years. In Nov, 2007 we sold our home (we were both on the title) and moved to Ottawa. From the proceeds of the home we paid off a substantial amount of debt (most of it was in my name only as he was self employed and had poor credit, however, it was joint debt - some of which was used to improve the home). We put aside an amount in a savings account to use for a downpayment on a new home.

    In Feb of 2009 we separated. We had already signed the papers on a new home that closed in May. The home was in my name only, because, as mentioned previously, he had poor credit and I was able to secure the mortgage without his income. The money we had put aside was used as the downpayment.

    I have been trying to get a separation agreement completed and have offered him more than his half of the money we had put aside for a new home. He is now coming after me for half of the origianl proceeds from the sale of the home which is significantly more money. He knows very well that money went to pay off debt and I provided all of my/our bank statements to prove it.

    Does anyone know if he has an legal right for more? We were living together for over a year after the sale of the house - should it even matter at that point??

  • #2
    Tell me if I am wrong - and SOMEONE will...

    All property is common regardless of whose name is on title.
    My debts, your debts, my house, your house are irrelevant.

    On the date you separated your family had a net worth.
    You are each entitled to 1/2 of it.
    Less the amounts brought into the arrangement originally by each of you.

    The downpayment on the house was a family asset. It adds into the total assets.

    Basically you guys had a certain worth on the separation date, split it in half. If the two of you were only worth the amount of the deposit, you should give your STBX 1/2 of the deposit.

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    • #3
      You were not married, so there is no 50-50 split of assets, and no special treatment of marital home (sorry lotusland).

      You paid off the debt while you were together, therefore THERE IS NO DEBT. It's the same as if you had just paid the expenses from your pocket, then he paid you back for half. The fact that you put it on credit for a while is irrelevent. He is now asking you for that money back: Tell him sorry buddy, you spent that money already. You BOTH spent all that money already.

      So the only thing left over to split is what you put aside for the new house.

      BUT ... if part of that debt was incurred for some assets that were for your own sole use, and/or you will be taking that asset with you, then he could fairly argue for some adjustment so that he is not paying for that asset.
      Last edited by dinkyface; 10-20-2011, 09:23 PM.

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      • #4
        Originally posted by LotusLand47 View Post
        Tell me if I am wrong - and SOMEONE will...

        All property is common regardless of whose name is on title.
        My debts, your debts, my house, your house are irrelevant.

        On the date you separated your family had a net worth.
        You are each entitled to 1/2 of it.
        Less the amounts brought into the arrangement originally by each of you.

        The downpayment on the house was a family asset. It adds into the total assets.

        Basically you guys had a certain worth on the separation date, split it in half. If the two of you were only worth the amount of the deposit, you should give your STBX 1/2 of the deposit.
        In Ontario common law couples are not bound by the same rules as married couples. There is no equalization of assets. What's yours is yours. End of story.

        CS is always applicable and SS is applicable under some conditions.

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        • #5
          Originally posted by dinkyface View Post
          You were not married, so there is no 50-50 split of assets, and no special treatment of marital home (sorry lotusland).

          You paid off the debt while you were together, therefore THERE IS NO DEBT. It's the same as if you had just paid the expenses from your pocket, then he paid you back for half. The fact that you put it on credit for a while is irrelevent. He is now asking you for that money back: Tell him sorry buddy, you spent that money already. You BOTH spent all that money already.

          So the only thing left over to split is what you put aside for the new house.

          BUT ... if part of that debt was incurred for some assets that were for your own sole use, and/or you will be taking that asset with you, then he could fairly argue for some adjustment so that he is not paying for that asset.
          That's how I see it as well and it seems to make sense - however I'm not sure how the law will see it.

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          • #6
            You can tell by my name where I am from - the law is different in BC....
            Thanks for clarifying.
            The message - dont live togther long term in Ontario.

            Comment


            • #7
              Originally posted by LotusLand47 View Post
              The message - dont live togther long term in Ontario.
              LOL.

              I disagree. I think people should have the right to choose the type of commitment they want to have. People should have the right to live together in common-law relationships without being bound to all the rules of marriage. Otherwise - they can get married. The problem arises because people are not aware of their rights and don't bother to investigate them because the are blinded by love and stupid enough to think their partner would 'never do that to them'.

              Comment

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