Announcement

Collapse
No announcement yet.

Matrimonial Home Buy Out

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Matrimonial Home Buy Out

    I am looking at paying out my ex for the matrimonial home. When I do the calculation for the payout would I take into consideration realtor and lawyer fees that would incur or do I just pay out the amount? For example if the increase in value of the home is $80K would I just pay her $40K or would I deduct realtor and lawyer fees from the $80 and they pay her out? I am not looking to sell the house but will continue to live in there.

  • #2
    1) Everything is subject to negotiation

    2) Pursuant to Sengmeuller v. Sengmueller (which is still good law in Ontario), notional dispositional costs (including realtor fees) are only deducted if the quantum is known, and if it is known when they will be incurred.

    Since you don't know when, or even if, you'll realize these costs, you don't have the right to deduct them. You also don't have the right to buy her out in the first place, so as I said in point 1, everything can be negotiated.

    Comment


    • #3
      I think there is an idea that there is a "correct" way of doing it.

      As Kinso said, anything is fine, as long as your ex agrees. If she agrees to deduct realtor and lawyer fees, then you can deduct them. If she disagrees, then you cannot deduct them.

      At the end of the day, she can force you to sell the house on the open market, and then you would have to bid like any other interested purchaser.

      So... be nice.

      Comment


      • #4
        In my case my ex was extremely unreasonable and wanted me to come up with 100% of the value of the matrimonial home not 50% ( which I could easily do). So we ended up selling the home. I was unable to bid on it when it was listed as he would not agree to allowing me any portion of my equity as a down payment. I did manage to secure 100% financing through a mortgage broker at an astronomical interest rate for 6 months but I turned it down. Good thing I did. I would have lost the house as years later our matter is still ongoing. Never mind six months.

        Comment


        • #5
          You hire a proper assessor and the other party hires an assessor. Generally they are in about a 3% range.

          https://www.separation.ca/videos/div...rimonial-home/

          Comment


          • #6
            Originally posted by Tayken View Post
            You hire a proper assessor and the other party hires an assessor. Generally they are in about a 3% range.
            I don't think they disagree about the value of the house. They disagree as to whether notional disposal charges should be deducted from the price.

            Eg: Both agree house is worth $500,000, but one of them wants to deduct 5% real estate commission from the price, making it $475,000.

            (Also, the idea that real estate fees are percentages of the house price is such a racket).

            Comment


            • #7
              Originally posted by Janus View Post
              (Also, the idea that real estate fees are percentages of the house price is such a racket).
              Total racket. In 1950 it made sense when houses were 18,000-22,000.

              Comment

              Our Divorce Forums
              Forums dedicated to helping people all across Canada get through the separation and divorce process, with discussions about legal issues, parenting issues, financial issues and more.
              Working...
              X