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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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  #1  
Old 02-25-2016, 08:33 AM
dad1414 dad1414 is offline
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Default Division of property - HBP RRSP’s

My Ex-wife is finally ready to divide up the matrimonial property...
When we bought our first house we used some of our Pre Marital RRSP’s as a down payment thru the Home Buyers Plan. She withdrew roughly $15,000.00 and I used $5,000.00. We have paid back the HBP loans while we together out of our joint accounts. She is now asking for the full $15,000.00 in the division settlement. Wouldn’t she be entitled to 50% of the $15,000.00 (so $7,500.00)? Seeing as we paid it back from our joint account?
Thanks in advance..
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Old 02-25-2016, 04:16 PM
stripes stripes is offline
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So you and she "borrowed" $5K from your RRSP and $15K for her RRSP to buy the house for both of you, and then you repaid the RRSPs together? It sounds like the value of money you withdrew from your RRSPs has gone into the marital home, which is the asset you should be sharing. If the RRSPs were in your individual names (these weren't joint or spousal), and all the money that was borrowed has been replaced, it looks to me like you both walk away with your RRSPs and you split the equity in the house between the two of you. Or am I missing something?
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Old 02-25-2016, 04:38 PM
standing on the sidelines standing on the sidelines is offline
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Originally Posted by stripes View Post
So you and she "borrowed" $5K from your RRSP and $15K for her RRSP to buy the house for both of you, and then you repaid the RRSPs together? It sounds like the value of money you withdrew from your RRSPs has gone into the marital home, which is the asset you should be sharing. If the RRSPs were in your individual names (these weren't joint or spousal), and all the money that was borrowed has been replaced, it looks to me like you both walk away with your RRSPs and you split the equity in the house between the two of you. Or am I missing something?
that's what I am thinking also. Yes the money was borrowed but it was also paid back. so it should count as a pre-marital asset.

I am thinking that point may be that the money was paid back after the marriage and someone is trying to equalize that as it was after marriage.
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Old 02-26-2016, 05:06 PM
dad1414 dad1414 is offline
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Thanks for your response...the money was paid back during the marriage out of joint account. The original RRSP as the down payment was in our own names. I could be wrong but I was looking at it as we borrowed $15,000 from here RRSP...We both paid it back lets assume equally since we had a joint account so I would have paid $7500.00 and she would have paid $7500.00. There for she would be entitled to 50% of the $15000.00...?
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Old 02-26-2016, 05:31 PM
standing on the sidelines standing on the sidelines is offline
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Thanks for your response...the money was paid back during the marriage out of joint account. The original RRSP as the down payment was in our own names. I could be wrong but I was looking at it as we borrowed $15,000 from here RRSP...We both paid it back lets assume equally since we had a joint account so I would have paid $7500.00 and she would have paid $7500.00. There for she would be entitled to 50% of the $15000.00...?
what about the money that you took out of your RRSP?
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Old 02-26-2016, 06:33 PM
dad1414 dad1414 is offline
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Yes...that makes sense. Thanks.
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Old 02-26-2016, 11:29 PM
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Rioe Rioe is offline
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Pretend it wasn't a HBP loan from your RRSP. Pretend it was borrowing from the next door neighbour.

You borrowed $50 and she borrowed $200. Later, you paid the neighbour back and everything is back to normal.

Now you are getting divorced. It no longer matters who borrowed what from the neighbour as you have paid it back already.
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