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  • Matrimonial Home Buy Out

    We were married in 2004, bought our home in 2005, and separated Jan 1, 2012.

    My ex left the home on Jan 1, 2012 and I've always remained. I was awarded sole custody of the kids from Jan to July, and in August we switched to joint 50/50 custody with week each.

    I've always paid all the bills on the home, including after she left I've been paying 100% of the mortgage, bills, upkeep, etc.

    2 years ago, the insurance company spent $75k on Phase 1 of the home modifications to make it wheelchair accessible for me. Now they are about to start Phase 2 with $265k about to be spent but they want to confirm that I will remain in the home before they begin.

    My ex is now requesting that the home be sold, but I want/need to remain here. How can I buy her out of the home and get it in my name only?

    I'm guessing the home could be sold for around $300k, but we would have to pay all the realtor fees and closing costs. There is $240k left of the mortgage. After all the fees/costs, how do I figure out her share in the house and how much would I have to pay her?

    I've called around to get the home appraised, but they're asking $500 for that report. A realtor would do a quick report for $40.

    What do I have to do to prove the home's true value? Does it go by today's date, or Jan 1st when she moved out? Because she left and hasn't paid anything towards it, does that affect her share in the home?

    Thanks!

  • #2
    How can I buy her out of the home and get it in my name only?
    Make an offer and come to an agreement; it is like buying (half of) a home from anyone else.

    I've called around to get the home appraised, but they're asking $500 for that report. A realtor would do a quick report for $40.
    You get what you pay for. If you want an accurate appraisal, it costs.

    Does it go by today's date, or Jan 1st when she moved out?
    If she owns half of the home, then you will need to purchase her asset at the value on the day you purchase it.

    Because she left and hasn't paid anything towards it, does that affect her share in the home?
    That would be factored into negotiations, as would occupational rent.

    Comment


    • #3
      Originally posted by acpickering View Post
      I've called around to get the home appraised, but they're asking $500 for that report. A realtor would do a quick report for $40.
      A realtor may not be a certified appraisor. So what they say may or may not be accepted by the courts.

      Most here suggest getting 2 certified appraisals done, and then average out the valuations to find a middle ground.

      You then take the valuation - remaining mortgage /2 = the amount you offer to buy your ex out at, less her half of real estate fees.

      If she has not been contributing to the mortgage or maintenance of the house from the date she moved out, I would say she is entitled to 1/2 the value as at the date she moved out. Why should she get the benefit of increased growth or lower mortgage when she did not contribute.....but would likely be argument to be had and how much is the difference of then vs now and what it would likely cost you to fight for that amount.

      Comment


      • #4
        Thank you for replying.
        I'm having a tough time trying to pay for one appraisal at $500, let alone 2, but I guess it needs to be done somehow...

        Home Sale: 300000 - 240000 = 60k /2 = 30k each.
        However, realtor fees of 5% @ 300k = 15k + gst.
        Other costs,
        Legal fees = $1200 + gst.
        Mortgage Discharge = 3 mth's of mrtg pymt, plus $300 fee
        Unpaid Property Tax = $6k pass due
        Liens Against Property = $10k

        Therefore,
        60k(equity) - 15k(realtor) - 1200(legal) - 4500(mrtg) - 6k(taxes) - 10k(liens)
        ==
        approx $23k equity... / 2 = $11,500 each

        If after the appraisals, and the value is estimated at $300k... based on this, would I offer $11,500 to buy her out? Am I missing anything?
        Thanks!

        Comment


        • #5
          I am not 100% sure on this so someone please correct me if I am wrong, but I was under the impression that legal fees to have the name changed were the responsibility of the person keeping the house, the liens...what are they for? If they are for loans that were taken out during the marriage, that would be part of equalization, not the value of the house.

          Comment


          • #6
            Home is only one part of equalization. Do you have any RRSPs? Pensions? Savings? "toys" (ATV, boat, snowmobile, etc), cars.

            You take total marital assets - total marital debts = amount remaining. /2

            Typically you are responsible for debts owing that are ONLY in your name. (ie. credit cards). If it's joint (or if you say, are a secondary signer on the card), then it's marital.

            In the case of an asset (ie. vehicle) with a loan owing against it. The loan is either cleared during equalization OR the person keeping the asset, assumes responsibility for the payments.

            That's the general rule.

            Comment


            • #7
              We have no RRSPs, pensions, savings, toys...
              We had 2 cars, but we split them when we separated.
              She took all the jewellry, electronics, etc. when she left... I got the run down furniture...

              Debt is from loans, credit cards, etc. Some are in my name (30k), her name (70k), and both names (30k). Mostly all acquired during the marriage.

              The liens against the home... One is from a credit card company $15k (7.5k from her credit card, and 7.5k from joint loan). There are also 2 liens from her legal aid lawyers showing up on the report, but I don't know the full value of those. She wasn't paying for or living in the home, but I guess she was charging her lawyers against it to battle me in court... funny since I can't afford a lawyer and make just over the legal aid qualifications...

              Eventually, we will both most likely have to go bankrupt to clear the debt.

              I believe the only issue remaining is the Home....

              Therefore, is it just:
              300k - 240k - 15k realtor fees = $45k / 2 = $22.5k each?

              Do the unpaid Property Taxes get added in or are they apart of debt?

              My understanding is that we can't complete the sale of the home until the property taxes and liens are paid off or the equity earned in the sale is used to pay them off...

              Comment


              • #8
                I'm in the process of renewing the mortgage. Since it's still in both our names, my ex has agreed to sign the papers, however the mortgage company says that they will not renew until the property taxes are paid up. They have not been paid in 3 years and we owe $8k.

                If I pay this bill myself, would my ex benefit from it.

                I'm still waiting to get an appraisal done, but my plan is to buy out her share in the home. By paying off the property tax bill now, it will increase the equity in the home.
                My offer is based on the value and mortgage at the time of separation, when she moved out.

                How would this bill be factored into the calculation to determine her equity share in the home.

                Comment


                • #9
                  Originally posted by acpickering View Post
                  I believe the only issue remaining is the Home....

                  Therefore, is it just:
                  300k - 240k - 15k realtor fees = $45k / 2 = $22.5k each?
                  Originally posted by acpickering View Post
                  however the mortgage company says that they will not renew until the property taxes are paid up. They have not been paid in 3 years and we owe $8k.

                  If I pay this bill myself, would my ex benefit from it.

                  How would this bill be factored into the calculation to determine her equity share in the home.
                  Yes, you should share the debt equally. Using your numbers from above, $26.5k of the $45k should go to you and $18.5k to the ex.

                  Comment

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