Announcement

Collapse
No announcement yet.

Notional Costs

Collapse
This topic is closed.
X
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Notional Costs

    Working on separation agreement - common law relationship for 15+ years. Own house together.

    Ex is buying out my portion of house - I'm good with this. However, he is now asking for Notional Costs of 5% from the value of the house, which equals over $15,000!

    This has really caught me off guard, do I have a legal obligation to pay this?

    I do have a lawyer, but I try to do as much of my own research as possible to ensure I am properly educated.

  • #2
    do I have a legal obligation to pay this?
    You are selling an asset. You have no legal obligations other than what you would normally have in selling your asset (that being, one half of a property).

    Negotiate to your best interests and he will do the same. If you cannot agree, the asset may be sold and the proceeds of sale divided.

    He is claiming a future liability on the property, for the cost to him of selling the property on the market. Whether you accept his offer is your decision.

    Comment


    • #3
      And note that 5% is the standard "premium" real estate agent's fees, many discount that fee, and he could sell through one of those methods. And he could also wait till the value of the property has appreciated etc.

      My ex and I sold our house before the Separation agreement was finalized. We agreed on an agent, commission rate and so on. Seems you don't get the chance to do that if he is not selling, so you shouldn't be asked to pay the high end of what that would be. Besides, if the RE commission was 5%, wouldn't it be fair to split that between the two of you, not have one party pay the whole thing?

      Comment


      • #4
        If you arebuying him out of the house, it should be fairly simple. All it is is a transfer of property with consideration (the mortgage amount). Buying him out might be offset with who's keeping what of the household contents, and their value. If there is equity left in the home:

        Value of home - mortgage - legal costs = equity left / 2

        If he is trying for notational costs then he is going for future equity. He's being greedy. He's basically threatening a forced sale of the home (. I'd have your lawyer write up an offer to settle, and see what his lawyer does with it.

        An interesting case cited by my Ex's lawyer.. lol:

        Family Law Lectures-The premium resource for the latest Case Law judgments.

        Comment


        • #5
          Thanks for the replies - certainly helps to know that I can negotiate this, or consider fighting it altogether - I know he has absolutely no intention of selling the house anytime in the near future.

          You just never know how things will go. We hashed out this separation agreement together, VERY fair. Shared custody, minimal child support, I wasn't going to claim spousal support and as per his request, I was not going to claim anything against his work pension. Then after a couple visits with a lawyer, his throws this at me. Nice.

          Comment


          • #6
            Originally posted by wilma View Post
            Thanks for the replies - certainly helps to know that I can negotiate this, or consider fighting it altogether - I know he has absolutely no intention of selling the house anytime in the near future.

            You just never know how things will go. We hashed out this separation agreement together, VERY fair. Shared custody, minimal child support, I wasn't going to claim spousal support and as per his request, I was not going to claim anything against his work pension. Then after a couple visits with a lawyer, his throws this at me. Nice.
            this is right from the main pages of this site. Look down to notional cost. I think we used 4% when I bought out my ex out of the house.

            Ontario Divorce and Family Law

            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