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mqhfx 06-01-2021 06:50 PM

Messy Property Issue
 
I am new hear but have been reading this topic to try and get a feel for how this works. Hope some light could be shed here

I bought house in 2009 with my then wife. In 2013 marriage broke down and she lived in the matrimonial home until July 2015 while I paid the mortgage and other bills. As part of a Consent Order I paid her an equalization payment of $12,000 which came from remortgaging the house with my then girlfriend in Oct 2015

She was then put on the title as joint tenants and we both were responsible for the mortgage. This relationship broke down in Aug of 2020 when we seperated from our common-law relationship. We cohabitate for several months with the majority of the time I stayed at friends often.

We had discussed me buying her out of the property in the range of $15-$25k but it never finalized.

On Jan 19th 2021 the home was totally destroyed by fire and was a total loss. We are both policy holders on the insurance and she is wanting to take the ACV payment and wants 50% of that and 50% of the land she insists I sell and 50% of the content settlement even though I had years worth of my things in the home hen she moved in. I do not want to sell but buy her out of the home I owned for 8 yrs before she became part owner but her demands seem unfair and unreasonable and I feel it would be "unjust benefit" to her.

My wife of 23 yrs only received an equalization payment of $12,000.

My ex common law partner shouldn't be entitled to the entire value of the property from the day I owned it. Is it not correct that she should be entitled to her equity share from 2015 to 2020? In other words 50% of the equity built during our time living and owning the home?

She had zero out of pocket expenses at time of refinancing and was not even considered a sale since the mortgage was also due for renewal at that time. Her credit and income did help get approval for refinance but that was it, no down payment etc.

Is she entitled to 50% of what the insurance company is offering after mortgage paid off? They then say we retain the land as they do not cover the land but just the building.

Problem is now she has seen these rebuild costs and cash payouts and has some rather large numbers in her head and alot of that has to do with the exploding costs of building materials and real estate been soled for far more then listing prices.

I just want to do this fairly and take back possession of my property and choose if I want to be paid out by insurance or let them rebuild.

How to fairly calculate an offer to present to her that if she refuses will hold up in court as fair and just.

Do i try to get her to be happy with 50% of the cash payout and have her let me keep the land? I will then be mortgage free but still without a home that with todays prices my share of the buyout would not afford to rebuild but if rebuild then she will be entitled to more then as the appraisal will be alot more with a brand new home.

Court takes forever and I am so conflicted as to what to do. Do I not agree to any of it, let insurance rebuild and in the meantime file an unjust benefit etc with the courts.

rockscan 06-01-2021 07:11 PM

Messy Property Issue
 
Im not a lawyer but I believe she would be entitled to a share of the increase in value if the house was still standing. Because it burned down she IS entitled to reimbursement for her belongings and some living expenses she would have should her accommodations be lost.

I would suggest making her an offer for the amount of equity increase as well as her belongings and a share of her living expenses.

If she disagrees tell her to take you to court. If she hasnt spoken to a lawyer she will learn quickly. If she did speak to a lawyer then they are fleecing her.

Either way I suggest you speak to a lawyer. Even if the lawyer sends a letter it might have more weight.

mqhfx 06-01-2021 07:36 PM

Insurance has provided both of us with living expenses for the first six months and if required another 6 months. They have also provided us both with emergency funds in the beginning to replace much needed belongings. I got a call from insurance saying that they provided her with the costs etc to rebuild the home and what the actual cash value payout would be and she said ok I agree to the cash buyout, I informed the insurance that we havent even discussed it so no decision is made yet.
She seen these numbers and is in the mindset that she should get 50% of the cash payout and 50% of the land value and 50% of the total contents payout once finalized.

Here are the numbers approx
I bought home in 2009 for $227k
Balance paid to my mortgage company was $209,779.11 from the new mortgage that was refinanced with girlfriend in 2015 for $232k

Insurance has stated that cost to rebuild which they will do is $682,033.09 or Actual Cash Value they would pay out would be $436,369.36 minus the land cause they do not cover the land. These numbers are certainly inflated due to the market and cost to build these days.

Mortgage of $224k plus over $5k penalty would be paid to bank first with remainder been split between us but we would still own the land. She then says I have to sell the land because she feels I don't deserve it even though I owned it yrs before she was involved.

At refinace the bank appraised the property at $278k

Do I tell insurance I don't know what to decide yet, try get her to agree to something reasonable and let insurance cover expenses for a bit longer.

All she did was use her better credit then mine and sign, now this mess.

So with what she wants it would be $100k her share of the payout, plus 50% of the contents and said she wants $50k for the land then she will sign it over to me. I am not in the position to refinance to pay her plus there is no house there right now so the bank wont.

If I rebuild and still have a mortgage for $224k, the appraised value of the new home will have some significant increase in equity that I assume she would get to share in. ugghhh so frustrating, thanks for your input

mqhfx 06-01-2021 07:48 PM

Does anyone have an example of the wording and layout of a legitimate looking offer? $300 plus an hour for lawyer is not in my financial means

rockscan 06-01-2021 07:59 PM

You should talk to a lawyer. First 30 minutes is free so that should help.

Trying to do it yourself will cause grief.


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