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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 09-12-2010, 10:06 AM
Technodaddy Technodaddy is offline
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Question Division of Property 2 years after separation/valuation date

Heres my situation;

Separated Nov 2008.
Valuation date for all assets ( rrsps, bank acc etc...) Nov 2008.

2 properties assesed April 2009.

In the settlement stage now and ex wife is expecting to get more equity from matrimonial home which I want to keep. She had it appraised again and of course a year later it went up. The other property went up as well but not as much. She wants to keep it.

Anyone know what the rules are in this area? I can't find anything.

I am saying we should use the valuation date to divide all assests including the properties, she doesn't think so.

???
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Old 09-12-2010, 11:42 AM
KeepSmiling KeepSmiling is offline
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The valuation date is the date of separation and that is the date that determines the amount of the equalization payment. It does not change just because the settlement process drags on.
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Old 09-12-2010, 11:43 AM
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I believe it's the value at seperation. Has she been paying into the home for mortgage, bills, maintenance or upkeep?
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Old 09-12-2010, 11:52 AM
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NOPE not a cent.

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I believe it's the value at seperation. Has she been paying into the home for mortgage, bills, maintenance or upkeep?
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Old 09-12-2010, 11:53 AM
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My thoughts exactly, so she seems to think the longer she drags this out the more she can get. So silly. Divorces ususally are though aren't they.

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The valuation date is the date of separation and that is the date that determines the amount of the equalization payment. It does not change just because the settlement process drags on.
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Old 09-12-2010, 02:07 PM
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Valuation date would apply to property that is clearly one person's, or the other's. If it is joint property then it has to valued on the date sold.

If it was joint investment account, and you value on separation date, and the value has risen then who would get the extra money? Obviously you should give it to me, since you each are only receiving the amount from v-date.

If it is a house or other real estate the same applies. If title is clearly in one person's name, then v-date applies. If it is joint, which is default for the matrimonial home, then you have to go by date of sale. If one party is exclusively paying the mortgage and other costs, then those should be included in the equalization, but it shouldn't entitle them to the entire increase in value. The other party is still joint owner of the property.
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Old 09-12-2010, 03:00 PM
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ahhh - much more complicated ...

So... you split the equity in the home on the date of settlement - then the person who has been maintaining the home deducts the portion of the increase in the equity from separation date to settlement date ... how do you figure that out?
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Old 09-12-2010, 04:57 PM
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Let's say the separation drags on for 3 years, Fred is living in the mat home and paying all costs, Wilma is living with her mother. In that length of time the house value has increased from 350k to 450k. (About 10% per year, possible in a hot market.) The additional 100k is significant and it shouldn't just go to Fred, the property is jointly owned.

Arguable that Fred should be paying rent to Wilma for her half of the house he is occupying. However he is absorbing costs, maintainence, repairs, mortgage, taxes and insurance. Most/all of those costs are easy to produce receipts for. If he can't produce receipts, he shouldn't get reimbursed. They could save time and accounting and legal costs and just agree to split the amount of the final sale, or they could insist on an accounting to the penny.
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Old 09-12-2010, 08:00 PM
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makes sense, so I guess financials need to be updated if there's a long period from separation to settlement.

and ... I'm moving to Bedrock ... housing market rocks!
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Old 09-12-2010, 10:05 PM
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I have paid all the bills for the mat home.

Mortgage, taxes, utilities, maintenance...

My suggestion will be that since I paid down the mortgage and taxes from the time she left I would get credit for that.

Seem reasonable?

Quote:
Originally Posted by Mess View Post
Valuation date would apply to property that is clearly one person's, or the other's. If it is joint property then it has to valued on the date sold.

If it was joint investment account, and you value on separation date, and the value has risen then who would get the extra money? Obviously you should give it to me, since you each are only receiving the amount from v-date.

If it is a house or other real estate the same applies. If title is clearly in one person's name, then v-date applies. If it is joint, which is default for the matrimonial home, then you have to go by date of sale. If one party is exclusively paying the mortgage and other costs, then those should be included in the equalization, but it shouldn't entitle them to the entire increase in value. The other party is still joint owner of the property.
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