Announcement

Collapse
No announcement yet.

Equity Split for Home in Common Law Relationship

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Equity Split for Home in Common Law Relationship

    Hello
    I have found out that I am in quite the situation.

    I do hope that this post is in the correct forum; however, I am looking for a quick answer and may have overlooked a more appropriate forum.

    I lived common law with my ex for almost 6 years. We split 5 years ago yet I remained in the home (with my children {neither of which are his bio-children}) that has both our names on title and have continued to pay the mortgage that was also in both our names.

    I've attempted to get the morgage in my own name but since both our names are on the title I need to have him on the mortgate (which won't happen). It is for this reason I conculted with a lawyer.

    He has advised me that my ex is eligible to partake in the equity that has built over the last 5 years even though he's never contributed to the mortgage payments or upkeep of the house. Is that correct?

    From the research obtained on the internet I was under the assumption that my ex would only be entitled to the equity in the house until our separation date...

    I'd hate to second guess my lawyer but even with my limited legal expertise this doesn't sound fair...

    Any advise that can be offered would be most appreciated. I reside in Ontario

  • #2
    Division of Property - Ministry of the Attorney General

    If it was a marriage, the equity should be evaluated on the day of the separation 5 years ago and you would need to share that money of the matrimonial property. (but you would need to pay a "rent" for these years while you stayed in the house)

    As it was a common law relationship, no equity sharing in Ontario. (but if he put money into the house when you bought it, you would need to give that back to avoid "unjust enrichment" claims.

    Comment


    • #3
      Originally posted by BitHunter View Post
      Division of Property - Ministry of the Attorney General

      If it was a marriage, the equity should be evaluated on the day of the separation 5 years ago and you would need to share that money of the matrimonial property. (but you would need to pay a "rent" for these years while you stayed in the house)

      As it was a common law relationship, no equity sharing in Ontario. (but if he put money into the house when you bought it, you would need to give that back to avoid "unjust enrichment" claims.
      mortgage and title were in both names, doesn't that make a difference?

      Comment


      • #4
        mortgage and title were in both names, doesn't that make a difference?
        Absolutely.

        The fact that people are/were in a relationship does not change title.

        Facts:
        - two people jointly own a property
        - therefore they are both entitled to 50% of the equity.

        The fact that one person paid more of the mortgage, or lived in the house, or anything else is irrelevant. If his name is on the mortgage, you have been paying down his debt; if his name is on title, he has been letting his asset appreciate for the past 5 years.

        There may be an unjust enrichment claim, by OP, to say that the other side is not entitled to the full increase in value, however before making that claim OP should seek legal advice.

        If OP wants to own the house, she will need to purchase her ex's interest. Since they would otherwise need to sell the property for fair market value, there is no great incentive for the ex to sell it for less than current fair market value.

        Comment


        • #5
          Get an current appraisal, and offer him half the equity in the house, less half the mortgage and tax payments you have made in the time since separation. If he's wise, he'll take that instead of getting into a court battle. Make sure not to actually give him the payment until you have his name off the title and mortgage though.

          The stuff about an ex being entitled to half the equity as of date of separation is far more relevant when you are talking about doing equalization right away. You guys have ignored proper equalization for five years now, so you have a much different situation. Any extra money you may owe him is the price you must pay for not properly separating your finances at the time of the relationship break down.

          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