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Net family property and the equalization payment

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  • #16
    my ex has offered to settle- to buy me out.. what if i want another 32000 dollars ? what do i have to do if i dont want too settle on the agfreed money that he is offering me?

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    • #17
      I have only been married two years, we own a house together and have no children. My spouse is a waitress, and I am not sure how someone would incorporate tips into her net income? I only make slightly more than my spouse. Combined gross income is less than $100k. Typically how long would spousal support be paid out if we were only married for two years, and considering that my spouse is self sufficient, making a bit less than I, would a judge even bother awarding spousal support? I know that this is all vague speculation.

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      • #18
        Determining value of home

        We purchased a new home - moved into it and my ex (then wife) moved out in less than 30 days. Move in June 1st, move out June 30 2010

        It is 14 months later - the house just sold. Lawyers are holding money in trust until we come to an agreement, my lawyer doesn't seem to know what she's doing - and it's too late to change now.

        So based on previous posts - my ex is entitled to half the equity at the time she moved out - how do you determine the value of the house - at the time she moved out - compare to what it's worth now.?

        I made all the mortgage payments, taxes, utilities etc.

        thanks - any advice would be greatly appreciated.

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        • #19
          If you were married when you purchased the house, it's value at separation will be divided half and half no matter who paid down or mortgage.....however, if the marriage is short (less than 4 years), you can claim "unequal division". An appraiser should be able to appraise a house for any time in past, but he/she usually wants to see inside the house. What is left after deducting the mortgage from the value at separation is the amount you split with your ex. This is usually done when Family Net Property is calculated.

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          • #20
            Since the ownership of the house and the separation was less than 30 days apart ... Is it reasonable to assume that the purchase price of the house would also be the value - since it wasn't even 30 days between the two?? Or would the bank appraisal for our mortgage purposes be the value of the house (it also fell within 30 days of separation.)

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            • #21
              The house value at your separation should be almost equal to the purchase price since separation is only 30 days after unless you renovated and added some value to the house in this 30 days. If you did, you could add renovation cost to purchase price. Appraising cost about $400-$700.

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              • #22
                So - is this how it should work??? I'm using round numbers for simplicity

                2010 I paid $250,000 for the house - had a mortgage of $100,000., therefore equity of $150,000 - split 50/50 my equity $75,000, ex's equity at time of separation $75,000

                2011 sold house for $252,000 - mortgage $98,000., total equity of $154,000 - ex's portion $75,000 (as it was at date of separation), mine $79,000. (this is where I recoup my principal paid), property taxes paid should be added on separately thru adjustments?

                the 50% calculation will be based on the value of the house at time of separation - not what I sold it for ...the extra profit (the way the law reads) is mine.........any monies put into the house during the marriage - is 50/50 - regardless of who put what in.

                thanks in advance for your help

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                • #23
                  Just looking at your excel spreadsheet - wondering since you're buying her out on the matrimonial home, does that mean you take on the entire mortgage (your half and hers?) I see the net equity adjusted for home in equalization but just not sure if that means you take on the whole mortgage - hope this makes sense...

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                  • #24
                    Yes, I took on the whole mortgage 3 1/2 years ago when I bought her out.

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                    • #25
                      This makes sense - is it correct? Anyone?

                      Originally posted by cory View Post
                      So - is this how it should work??? I'm using round numbers for simplicity

                      2010 I paid $250,000 for the house - had a mortgage of $100,000., therefore equity of $150,000 - split 50/50 my equity $75,000, ex's equity at time of separation $75,000

                      2011 sold house for $252,000 - mortgage $98,000., total equity of $154,000 - ex's portion $75,000 (as it was at date of separation), mine $79,000. (this is where I recoup my principal paid), property taxes paid should be added on separately thru adjustments?

                      the 50% calculation will be based on the value of the house at time of separation - not what I sold it for ...the extra profit (the way the law reads) is mine.........any monies put into the house during the marriage - is 50/50 - regardless of who put what in.

                      thanks in advance for your help

                      Can anyone with knowledge of this matter respond and confirm this? Does the spouse that continues to pay the mortgage + property taxes and house insurance benefit from the reduced principal and tax and insurance payments from the time of seperation to the time of sale of the matrimonial home?
                      Makes perfect sense. Answer please.

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                      • #26
                        I can't understand why the Ontario law would be setup so that someone could be entitled to half the house equity that was made before marriage! That law seems like it would cause a lot of people to marry under false pretenses in hope of taking someones hard earned money. Thank god I live in Alberta where they use the value at marriage to determine the baseline to split. If it goes up from that then you split half. If it goes down then you both split the decrease.

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                        • #27
                          Unfortunately even if you live in Alberta sometimes the matrimonial property that you brought into a marriage still isn't safe.
                          I bought a house prior to our marriage but my STBXhusband has had a wacko interpretation from a lawyer that says he is entitled to half of it anyway. We were trying to negotiate our separation agreement without lawyers as there are few assets and no kids, but he is being unreasonable and refuses to acknowledge the law so we are going to have to go through collaborative law (I hope) to come to a compromise.

                          Really, even though the law says it is exempt property people will still try to take it off you!!

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                          • #28
                            Originally posted by thethanksiget View Post
                            Can anyone with knowledge of this matter respond and confirm this? Does the spouse that continues to pay the mortgage + property taxes and house insurance benefit from the reduced principal and tax and insurance payments from the time of seperation to the time of sale of the matrimonial home?
                            Makes perfect sense. Answer please.
                            I believe that equalization only deals with the equity of the house at the separation...unless parties agree to share sales profit and deduct all the cost paid after separation. Or, if a spouse stays home but the only the other spouse keeps paying all the bills for the house, interest, hydro,gas, and tax...that can be claimed as "occupancy rent", but you need to have this on your application.

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                            • #29
                              Originally posted by locoroco View Post
                              I can't understand why the Ontario law would be setup so that someone could be entitled to half the house equity that was made before marriage! That law seems like it would cause a lot of people to marry under false pretenses in hope of taking someones hard earned money. Thank god I live in Alberta where they use the value at marriage to determine the baseline to split. If it goes up from that then you split half. If it goes down then you both split the decrease.
                              I totally agree with you.

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                              • #30
                                hi - my Ex and I seperated Summer 2010. Divorce was finalized Early 2012. I had been paying all the expenses since the date of separation. The house was appraised one month prior to the date of separation. Am I to use that number to determine the equalization payment?

                                Can someone argue the date of separation now that the divorce has been finalized?

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