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Common Law Issues The law regarding common law relationships is different than in cases of divorce. Discuss the issues that affect unmarried couples here.

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Old 10-26-2010, 11:39 AM
single_mom single_mom is offline
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Question help? common-law house assets division

Hello

Ive been in a common-law relationship for 3 years, we lived together for close to 1.5years and we share a 2.5year old daughter together.

He has bad credit, so when we purchased our brand new home it went soley under my name.

His father put down 40,000 as a down payment and my mother gave us 15,000 for closing fees and furniture.

we seperated about 6 months ago, he moved out 5 months ago... he hasnt paid 4 morgage payments so far, no bill payment, car payments, insurance...grocery money, nothing. My daughter went to pre-school in september, and i just found full-time work. i put the house for sale right when he left cause i couldnt afford to pay morgage...The house just sold, will be closing end of November.

My mother helped me out with morgage and bills for the time he hasnt been paying.


For the time we were living together, he never worked, where the money was coming from was questionable, although i knew, i didnt ask.

i went to see a lawyer, she informed me that my child support from him will be close to nothing, and spousal support probebly less.


His father just bought him a brand new BMW and a condo, so financially he is more than ok.


my question is, since he technically abandoned us, and the house and everything is in my name....do i have to give him any money at all for when the house sells....

he keeps talking about that if i dont give him half, then he will get a lawyer and prove where the 40,000 came from.

i know im being unfair by wanting to take everything, but he is leaving me pretty much with nothing. I hardly make 28,000/year at work, child support will be close to nothing, and i have to find a basement apartment to rent for me and my daughter cause thats all i can afford.


my lawyer said it is unlikely i have to repay him the 40,000 since there was no contract signed...


oh and i should also mention that we have about 30,000 in debts



please thank you for all your answers.
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Old 10-26-2010, 12:51 PM
KanataKathy KanataKathy is offline
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IF he chooses to litigate, AND he (or his father) kept good records vis-a-vis the $40k used as a downpayment, arguably, he *could* have a case.

However, depending on who accrued the $30k in debt, then some of that debt may offset the $40k in capital used as a downpayment. Who is responsible for the debt? Are you using the proceeds from the sale of the house to pay out the debt?

I would have suggested taking a 'wait-and-see' approach to see if he commences litigation, but you appear to have CS & SS issues that also need to be sorted out.
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Old 10-26-2010, 01:40 PM
single_mom single_mom is offline
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Default help? common-law house assets division

to answer your quetion, the debt is all under my name (line of credit, visa, etc..) but we both equally contributed to it. As far as i know, this debt will be minused from the cheque hended to me by the lawyer upon closing.

right now he does have a lawyer, but supposubly this lawyer is acting on the child custody case. He keeps asking for 50/50 split of the house assests, which i keep telling him i will give it to him. but in the mean time i keep stalling any further talk.

he is pressuring me to go see the lawyer for the closing of the house together, even though i signed for the sale of the house myself, he was not present, nor he needed to be present since the house is under my name.

The 40,000 i remember was a cheque from his father's account written to him, which he later deposited into his account and wrote a cheque to the builder.


Is it possible for when i receive the assets from the house to just drain out my bank account and say the money "dissappeared"?
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Old 10-26-2010, 01:47 PM
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Originally Posted by single_mom View Post
Is it possible for when i receive the assets from the house to just drain out my bank account and say the money "dissappeared"?
That will get a lot of credit in the court's eyes. What are you going to say, that you blew it all in Vegas on gambling, hookers and blow?


Seriously how much cash are going to walk away from closing with? Why don't you make him a fair offer which a/c's for both of your down payments and the debt to get him to walk away?
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Old 10-26-2010, 01:52 PM
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cause after real etate agent fees, tax property, early morgage cencellation, debt...if 50/50 we would be walking out with 20,000 each.

which is not that much at all for me, cause eventually when i get setteled with work and everything, id like to get my own place for me and my daughter
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Old 10-26-2010, 02:08 PM
KanataKathy KanataKathy is offline
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Dear, I can understand you'd like to be able to get a place for you and your daughter. However, it still remains that the two of you acquired the debt, and the two of you both came up with money to purchase the home. It's unclear to me who paid the bills whilst you were together.

He made a contribution towards the purchase of the house and should be reimbursed for some portion of it. He also appears to be responsible for some portion of the debt, so his portion of the debt is a consideration...
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Old 10-26-2010, 03:10 PM
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I would think that unless his dad gifted the both of you the $40k for the down payment on the house, it would be considered debt and he would be entitled to it back. If Dad is not reimbursed, he may be able to sue the two of you. But with you having sold the house and kept the money, Dad's best arguments would be against you.

If dad gifted it to Ex and Ex used it towards the downpayment, then he would be entitled to his portion of the downpayment, together with any increase in value of the house, minus his portion of any family debts accrued during the marriage. After the payment of the debts, the remaining money would be split accordingly.

You are not entitled to 100% of the equity of the house. Both your ex and his father have an interest in the house (depending on the nature of how Dad gave your ex the money).

And this part here caught me a bit

Quote:
40,000 as a down payment and my mother gave us 15,000 for closing fees and furniture.

we seperated about 6 months ago, he moved out 5 months ago... he hasnt paid 4 morgage payments so far
I don't think 4 months of mortgage payments comes anywhere near the $40k that was put down as a deposit. He could very easily argue unjust enrichment if not other less pleasant things should you keep the entire amount.
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Old 10-26-2010, 04:10 PM
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which is not that much at all for me, cause eventually when i get setteled with work and everything, id like to get my own place for me and my daughter
Totally wrong answer. You owe him and you need to come to terms with that. I can't believe you had the nerve to give that as a reason.

Or you can both piss it all away in no times to the lawyers.

Separation and divorce is painful. Everyone loses except the lawyers.

Why don't you buy him out and save yourself the realty fees and the mortgage penalties? Then you have the added bonus of maintaining some stability for your daughter by keeping her in the only home she has ever known.
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Old 10-26-2010, 07:30 PM
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She put thehouse up for sale already because she couldn't afford the mortgage payments, doubt she could afford the payments and buying him out. Sounds like selling it is the best bet, especially if there is that much debt involved.

Sell the house, pay off the debt and split the remaining money between the two of you. Maybe even consider splitting it proportionate to each of your contributions to make it most fair.

The debt could be an issue if it's all in your name since you are common law. You could very well get stuck with all of it if you can't prove it was accumulated by both of you.

Last edited by blinkandimgone; 10-26-2010 at 07:31 PM. Reason: the voices told me to...
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Old 11-02-2010, 07:57 PM
Max22258 Max22258 is offline
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The debt is your problem, I just went thru that and was stuck with the debt. Yes we brought it up to the judge with no luck. We recently signed an agreement but she used a fake address on the agreement and never returned furniture she stole from the house and ordered returned by the judge.
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