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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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  #1  
Old 03-24-2020, 03:53 AM
seekinganswers79 seekinganswers79 is offline
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Default Mortgage payments after moving out

Hi there,

I decided to move out of the matrimonial home early December 2019, and actually moved out on December 13, 2019. The plan was the put the house up for sale, and that I would continue to pay half the mortgage and property tax until it sold. I asked him one last time right before I signed back my lease agreement if he wanted to be the one to leave: he did not want to move, he wanted to stay in the house. I didn't want to leave either, but that's a story for another post

Largely due to his inaction and delays, the house is still not sold. It was finally due to be listed this Wednesday, but with the announcement of non essential services being closed as of tomorrow night, the real estate agent has suggested we may need to hold off on listing.

If I stop contributing to the mortgage and taxes, are there any financial repercussions? I had assumed we would have had the house listed in January, February at the latest. I planned and budgeted based on that assumption and while I'm capable of comfortably carrying my own living costs, contributing to two households for this long and for who knows how much longer was not part of my plan. I knew it would be a struggle, but figured I could handle the short term sacrifice if it meant getting the peace of mind moving out provided.

Some extra info: we share time with the kids 50/50. There is no child or spousal support either way. We have virtually equal salaries. I pay half the mortgage and property tax, half after school childcare expense, and half of our older boys cellphone bill. He pays utilities/cable for the house. We've equally split large house maintenance expenses like painting and redoing the floors in order to list.
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Old 03-24-2020, 03:54 AM
seekinganswers79 seekinganswers79 is offline
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Oof, that was a longer post than I'd intended. Sorry.
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Old 03-24-2020, 09:35 AM
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Janus Janus is offline
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Quote:
Originally Posted by seekinganswers79 View Post
If I stop contributing to the mortgage and taxes, are there any financial repercussions?
Normally I would say that you would have to pay it eventually. If you don't pay it now it would be trivial for your ex to order that your share of the payments be taken from the equity when the house finally does sell.

The question therefore would not be "to pay or not to pay". The question would rather be "pay now or pay later?"

If you pay later, the bank could easily slap on penalties. The bank could also potentially seize your house and auction it for a price well below the market value.

As an option, you could call the bank and ask to skip some payments. The only penalty there is a bit of extra interest, and it is far better to do that than to just unilaterally decide to stop paying your mortgage.

Now, in your case, sounds like your ex is living in the house while you moved out. In that case he likely should be paying for the full mortgage in lieu of occupation rent.

(Note to the peanut gallery, never move out until you have a signed and comprehensive separation agreement. We can never repeat this enough. Any "peace of mind" you get from leaving is generally not worth the trouble you obtain as a replacement).

However, the courts are not going to hear your case for a long time. They used to be backed up before the corona virus. The delays for non-custody matters are about to become epic. You need to negotiate with your ex.
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Old 03-24-2020, 09:38 AM
Abba435 Abba435 is offline
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CMHC has announced mortgage payment deferrals for all insured loans on March 22, 2020 effective now.
All banks are being told to follow suit for uninsured loans.
Just call your bank and tell them you need a deferral.
Deal with it after this pandemic is over and payments resume.
Noone is foreclosing. No penalties. No strict policy. Just call the bank.
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Old 03-24-2020, 11:14 AM
seekinganswers79 seekinganswers79 is offline
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Quote:
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Now, in your case, sounds like your ex is living in the house while you moved out. In that case he likely should be paying for the full mortgage in lieu of occupation rent.
Yes, he is living there. He pays the utilities, and half the mortgage and half property tax. I've paid the other half to secure my equity. I didn't want him saying I didn't pay and therefore wasn't entitled to the full half of the equity.

I'm not familiar with occupation rent. My lawyer never mentioned that. His advice was to get my husband to pay the bills, mortgage included, but never suggested their was anything like occupation rent. It was more of a "try to convince him" statement.
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Old 03-24-2020, 11:26 AM
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I'd rather avoid deferring, Abba435.
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Old 03-24-2020, 11:36 AM
Abba435 Abba435 is offline
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I'd rather avoid deferring, Abba435.
Defer only if it is absolutely necessary. It is an option only.
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Old 03-24-2020, 02:38 PM
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Quote:
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Defer only if it is absolutely necessary. It is an option only.
Agreed. We're both still working, hopefully we'll be able to ride this out.
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