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-   -   Interest on equalization payment (https://www.ottawadivorce.com/forum/showthread.php?t=23530)

trueblue22 03-15-2021 06:00 PM

Interest on equalization payment
 
Hi everyone,

As some of you know I've been refusing to leave the matrimonial home until I get a good agreement with my ex unless he forces it to court He has an idea of what he thinks I'm owed re: equalization and I have a different idea.

I read about receiving interest on equalization payments. Would I be able to request for that? My ex says that any equalization he owes me will be given to me from the sale of the house but based on his financial disclosure he has more than enough to pay me if he sold off his investments.

Tayken 03-15-2021 06:09 PM

Quote:

Originally Posted by trueblue22 (Post 245659)
Hi everyone,

As some of you know I've been refusing to leave the matrimonial home until I get a good agreement with my ex unless he forces it to court He has an idea of what he thinks I'm owed re: equalization and I have a different idea.

I read about receiving interest on equalization payments. Would I be able to request for that? My ex says that any equalization he owes me will be given to me from the sale of the house but based on his financial disclosure he has more than enough to pay me if he sold off his investments.

Interest usually only occurs after an order is issued for equalization. The person who has the balance of the equalization may be hit with interest if the equalization payment is not made in accordance with the court order.

As neither of you know what the actual equalization how can interest be accumulating on something that is unknown?

rockscan 03-15-2021 07:03 PM

You also arent entitled to interest on back equalization that you claim he owes as it was never agreed to or ordered.

With respect to the investments, he would incur the taxes/penalties from selling his investments and its unreasonable for you to expect him to incur those costs when selling the home comes with less costs. If you hold out on an agreement because you think he should sell investments in stead of the house, you demonstrate you are unreasonable.


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trueblue22 03-15-2021 11:02 PM

Quote:

Originally Posted by Tayken (Post 245662)
Interest usually only occurs after an order is issued for equalization. The person who has the balance of the equalization may be hit with interest if the equalization payment is not made in accordance with the court order.

As neither of you know what the actual equalization how can interest be accumulating on something that is unknown?

We have never been to court and there has been no court order for equalization. I thought that once we figure out an agreeable equalization amount I would be able to request interest on that amount for the last 5 years that I have not received it.

rockscan 03-16-2021 09:00 AM

No you cant request historical interest on an order that is given now. The date on the order would be now and interest is not owed.

As many of us previously told you, you agreed to the status quo the last five years. You got the house and he paid all your bills. You agreed to that by accepting it. You cant come back now and say oh hey I want interest because you should have been paying me more.


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Stillbreathing 03-16-2021 10:06 AM

I have been embroiled in litigation for ten years now. If by some miracle he were to accept one of my multiple offers to settle then he would not have to pay costs or interest unless I factored either of those into the offer. However, if we go to arbitration/ trial then he would have to pay interest AND costs. We are asking for interest and do expect to get it at arbitration. He has had the use of my money and the children’s money for ten years and profited from same while the children and I have suffered due to his unwillingness to settle. Courts do take this into consideration, especially when there is a protracted history of bad faith behaviour by the losing party.

rockscan 03-16-2021 10:08 AM

Quote:

Originally Posted by Stillbreathing (Post 245681)
I have been embroiled in litigation for ten years now. If by some miracle he were to accept one of my multiple offers to settle then he would not have to pay costs or interest unless I factored either of those into the offer. However, if we go to arbitration/ trial then he would have to pay interest AND costs. We are asking for interest and do expect to get it at arbitration. He has had the use of my money and the childrens money for ten years and profited from same while the children and I have suffered due to his unwillingness to settle. Courts do take this into consideration, especially when there is a protracted history of bad faith behaviour by the losing party.


Yes but your case involves interest from the start of litigation/temporary orders. OP wants to agree to a set amount of spousal support going forward from now and then say he should have been paying that since she locked him out of the house and claim he owes her interest on that. There was no original court action, it was an agreement between the parties that was supposed to be short term.


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Janus 03-16-2021 10:40 AM

From what I have seen, post-judgement interest is often applied. However, pre-judgement interest is rarely applied.

The only time I seem to see pre-judgement interest ordered is when the payer knew that the money would be owed, but tried to stall.

trueblue22 03-16-2021 01:09 PM

Quote:

Originally Posted by Janus (Post 245684)
From what I have seen, post-judgement interest is often applied. However, pre-judgement interest is rarely applied.

The only time I seem to see pre-judgement interest ordered is when the payer knew that the money would be owed, but tried to stall.

What would be considered attempts to stall? I am living in the matrimonial home but he knows he can force me to sell but he hasn't taken any action by taking me to court to force the sale of the home. He knows I want to be paid out first before I agree to sell the house but he won't pay me unless it's using funds from the sale of the house. I don't care if he doesn't want to pay taxes on his investments by taking out the money from those accounts. Does he have a right to decide which assets he needs to sell to give me my money or is it unreasonable for him to insist he only wants to use MH funds?

trueblue22 03-16-2021 01:11 PM

Quote:

Originally Posted by Stillbreathing (Post 245681)
I have been embroiled in litigation for ten years now. If by some miracle he were to accept one of my multiple offers to settle then he would not have to pay costs or interest unless I factored either of those into the offer. However, if we go to arbitration/ trial then he would have to pay interest AND costs. We are asking for interest and do expect to get it at arbitration. He has had the use of my money and the children’s money for ten years and profited from same while the children and I have suffered due to his unwillingness to settle. Courts do take this into consideration, especially when there is a protracted history of bad faith behaviour by the losing party.

I haven't been to court yet but that is my biggest fear. I don't want to end up in a situation where I have no assets, everything is tied up in trust meanwhile my ex is still making 500k+ a year and my business revenue has dried up. He would bankrupt me into giving up.


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