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  • Calculating value of home

    I was in a lengthy common law relationship. We purchased a home together. My partner provided significantly more to the down payment. Since the home was purchased it has increased in value by approximately $60, 000. Much of this increase was due to the renovations that were done after purchase. I provided almost all of the labour involved in these renovations. She is buying me out and keeping the home. Legally, is there any calculation/consideration for sweat equity? I also purchased numerous supplies for the renovations. Should I be re-imbursed for these costs?

    Also we have had a border for more than a year paying $550 rent. Shouldn’t that money be divided equally between partners?

    If anyone can help answer these questions it would be much appreciated.

  • #2
    I would think that since the home is equally owned by both of your, Have the property appraised and divide the value. I would think that if you put the down payment you should get credit for that amount.

    Sweat equity will be very difficult to prove.

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    • #3
      Is the home in both names?
      Sounds like you and your partner are in agreement at least on her buying out the home; at this point, is she in agreement with you on the labor you put into it, and the amount you put into the down payment? If so, get some agreement in writing ASAP, because if things get ugly, people often seem to distort their recollections...

      I would think that without an express agreement, any rental income would be treated as joint income (split equally, assuming the house is in both names).. that's my guess ONLY; I really don't know for certain.

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      • #4
        I have a similar situation, the courts will consider the cost of materials involved in the upgrades/renovations. As for sweat labour, doesn't count. If a contractor had done the renovations, including labour, and provided an invoice you would have stood a better chance. Basically if you provided the labour its consider "free of charge".

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        • #5
          In a marriage the value of a home is determined as of the date of separation. Generally this is from an appraisal of the home. as mentioned sweat equity would be hard to include. But this is considered in the appreciation of the value since purchase. If you have done upgrades etc that will increase the value since purchase. they most common way in common law relationships to have a difference in entitlement is if one party had provided more to the house possibly in the way of a significant inheritance. in a conventional marriage that is less likely to be considered when it would come to a say a downpayment. In a marriage most other inheritances would most likely not be divided. But may be considered an asset of some value when considering ones net worth.
          Now you have mentioned that your relationship was commonlaw and for a lengthy period of time. Common law may not be looked at the same way if the relationship was short but in your case the longer it was the more it would be considered like a marriage. entitlements wise anyway.

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          • #6
            can I comment here?

            I have a situation which may be related.
            The ex contributed to living expenses by doing renovation work. Verbal agreement which as we all know isn't worth the paper it isn't written on.
            So 5 1/2 years later he is attempting to sue me for unjust enrichment although he refused to change his address and file as common law. My name only on the deed.
            He filed with CRA and EI as divorced and living in an area where there was low employment, thereby pocketing over $10,000 in entitlements with EI he was not entitled to.
            So how can he go in front of a judge and expect the law to accomodate him while he ignored the law all that time?
            Do you have receipts? You'll need them.
            I got some excellent advice by contacting my local legal information center, got 1/2 hour with a lawyer for $20.
            Unfortunately that was 2 years and several thousand dollars later, seems like the lawyers are the only winners here. You don't mention children. They seem to be the pawns and the ones who really lose in the end.
            Good luck. Document everything!!!!!!

            Comment

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