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Divorce & Family Law This forum is for discussing any of the legal issues involved in your divorce.

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Old 03-27-2017, 12:18 PM
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Default Matrimonial Home splitting questions

Asking for a friend:

1 - A house is purchased after getting married and one party puts in 50k (money they had prior to marriage). The house is sold 3 years later at a profit of 100k. At the end of the day does party A actually get back their 50k because it wasn't part of a matrimonial home at the TIME of marriage but instead was part of their NFP? (i.e: they evade the - "you got screwed by the 50/50 split of mat home")

2 - If the parties decide to sell the home and are living apart but still have an on and off relationship as part of a divorce such that it could be argued the sale of the matrimonial home happened before the valuation date would that exclude the home as "matrimonial home" since it was sold before the separation was done.

I'm not entirely sure, so I figured collective wisdom would be better here.
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Old 03-28-2017, 12:49 AM
Travis Lee Travis Lee is offline
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My xwife bought a home 2 years before we hitched up and got married. She put 10,000 down.
We lived there 13 years. I did all the renovations. Roof, floors windows, etc. We sold it. Made a profit from what she had paid for it. Purchased a new home. Lived in the new home 7 years. Divorced. She wanted her downpayment back from the first house plus the profit. She needed to prove what the house was worth at the time of purchase....and what profit she was entitled to in the two years before we hitched and got married.
She coudnt come up with what the value of the house was worth for the two years before I moved in. If she could...she would have gotten it. We settled on the orginal 10,000 and 2000 profit for the 2 years before I moved in. She wanted much much more than that.
Hope this helps.
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Old 04-01-2017, 11:57 PM
Links17 Links17 is offline
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Quote:
Originally Posted by Janus View Post
Asking for a friend:

1 - A house is purchased after getting married and one party puts in 50k (money they had prior to marriage). The house is sold 3 years later at a profit of 100k. At the end of the day does party A actually get back their 50k because it wasn't part of a matrimonial home at the TIME of marriage but instead was part of their NFP? (i.e: they evade the - "you got screwed by the 50/50 split of mat home")

2 - If the parties decide to sell the home and are living apart but still have an on and off relationship as part of a divorce such that it could be argued the sale of the matrimonial home happened before the valuation date would that exclude the home as "matrimonial home" since it was sold before the separation was done.

I'm not entirely sure, so I figured collective wisdom would be better here.
I believe the answer to 1 in ontario is that the NFP has -50k as it is treated seperately from the matrimonial home.

However any NFP that is negative goes to zero

Then the house is split 50/50

2 - I think the valuation date trumps everything. If there is no matrimonial home at the time of the "valuation date" then there is no matrimonial home and nothing to split 50/50.
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Old 04-03-2017, 12:42 PM
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My understanding is that if the matrimonial home exists on the valuation date (separation date), then nobody can include the house as an asset on the marriage date.

Quote:
2 - I think the valuation date trumps everything. If there is no matrimonial home at the time of the "valuation date" then there is no matrimonial home and nothing to split 50/50.
Agreed... but...

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living apart but still have an on and off relationship as part of a divorce such that it could be argued the sale of the matrimonial home happened before the valuation date
A couple can decide to separate on April 3rd, then have sex for the next 17 days, and then fully split on April 20th. I think the valuation date at that point is April 3rd. If they are living apart, and then never start living together again, then they separated when they lived apart.

More importantly, from a judge's perspective, ruling that a matrimonial home is effectively not a matrimonial home will generally hurt the party with less money. If they can easily choose between the options and justify it either way, they will select the option that takes money from the rich.

At least that's what I think
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Old 04-03-2017, 11:44 PM
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More importantly, from a judge's perspective, ruling that a matrimonial home is effectively not a matrimonial home will generally hurt the party with less money. If they can easily choose between the options and justify it either way, they will select the option that takes money from the rich.
I definitely agree
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Old 04-04-2017, 11:06 AM
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Quote:
1 - A house is purchased after getting married and one party puts in 50k (money they had prior to marriage). The house is sold 3 years later at a profit of 100k. At the end of the day does party A actually get back their 50k because it wasn't part of a matrimonial home at the TIME of marriage but instead was part of their NFP? (i.e: they evade the - "you got screwed by the 50/50 split of mat home")
Suppose the house has 300k equity at separation.

Assets at marriage:
Party A: $50k cash
Party B: 0

Assets on valuation date:
Party A: $150k (being 50% of home equity)
Party B: $150k (being 50% of home equity)

Party A NFP: 100k
Party B NFP: 150k
Equalization: Party B pays Party A 25k

If no other assets, Party A will have $175k from home equity and Party B will have $125k from home equity, after the 25k transfer.

Quote:
2 - If the parties decide to sell the home and are living apart but still have an on and off relationship as part of a divorce such that it could be argued the sale of the matrimonial home happened before the valuation date would that exclude the home as "matrimonial home" since it was sold before the separation was done.
Issue: What is the valuation date?
This issue needs to be determined. It is a factual finding.

If the property was sold before the separation date then it did not exist at that time and therefore was not the matrimonial home.

Quote:
My understanding is that if the matrimonial home exists on the valuation date (separation date), then nobody can include the house as an asset on the marriage date.
This is correct.
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