Ottawa Divorce .com Forums


User CP

New posts

Advertising

  Ottawa Divorce .com Forums > Main Category > Financial Issues

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

Reply
 
Thread Tools
  #1  
Old 02-13-2021, 04:32 PM
helenj helenj is offline
Member
 
Join Date: Oct 2020
Posts: 36
helenj is on a distinguished road
Default Splitting matrimonial and investment property

Hi all,

My ex-wife and I jointly own two properties. My ex-wife currently has exclusive possession of the matrimonial home while I am living with a friend. However, I manage the investment property.


They're both valued at $1 Million each and they each carry a mortgage of $500k. Both our names are on both properties.



We were thinking of each keeping one property. So she would keep the matrimonial home and I would keep the investment property.


My question is if this makes financial sense from my perspective? Or am I giving up some financial gains? Her lawyer also wants to lock in the property values at $1 million until Trial (trial can take up to another 9 months). Would appreciate any perspective.


I am also barely breaking even on the investment property.
Reply With Quote
  #2  
Old 02-13-2021, 06:14 PM
Jeff's Avatar
Jeff Jeff is offline
Administrator
 
Join Date: Sep 2005
Location: Buried in paperwork
Posts: 633
Jeff has much to be proud ofJeff has much to be proud ofJeff has much to be proud ofJeff has much to be proud ofJeff has much to be proud ofJeff has much to be proud ofJeff has much to be proud ofJeff has much to be proud of
Default

Both properties likely have capital gains. However, the capital gains on a primary residence are not taxable and the capital gains on an investment property are. So that should be taken into account.
__________________
Ottawa Divorce
Reply With Quote
  #3  
Old 02-13-2021, 06:15 PM
Stillbreathing Stillbreathing is offline
Senior Member
 
Join Date: Dec 2014
Posts: 610
Stillbreathing will become famous soon enough
Default

I would never agree to lock in the value of the homes until trial. You are very naive if you think trial can take up to 9 months. Try 10 years and counting as in my case.
Reply With Quote
  #4  
Old 02-13-2021, 10:31 PM
Helpmyspouse Helpmyspouse is offline
Senior Member
 
Join Date: Feb 2018
Posts: 207
Helpmyspouse is on a distinguished road
Default

I second that. I'm at 7 years....
Reply With Quote
  #5  
Old 02-13-2021, 10:33 PM
helenj helenj is offline
Member
 
Join Date: Oct 2020
Posts: 36
helenj is on a distinguished road
Default

Thank you both for your response.


1. What's the problem with locking in the values to both homes? They have the same mortgage and selling value.



2. My ex's lawyer is trying to "settle" the property issue by getting us to lock in the value. What should I be asking for in the agreement?



I may want to move in to the investment property in about a year or so as I can't live with my friend for much longer.



Thank you in advance for your help.
Reply With Quote
  #6  
Old 02-14-2021, 06:51 PM
Kinso Kinso is offline
Senior Member
 
Join Date: Sep 2015
Posts: 343
Kinso is an unknown quantity at this point
Default

Quote:
My question is if this makes financial sense from my perspective? Or am I giving up some financial gains? Her lawyer also wants to lock in the property values at $1 million until Trial (trial can take up to another 9 months). Would appreciate any perspective.
I think someone with this amount of equity could be getting advice from a professional rather than the internet.

I would consider the primary residence tax implications (there may be a way to declare both as your primary residence once you've split). The locked in value seems dumb. Occupational rent.


1. One property might change in value to a greater degree than the other. Even if in similar areas, maybe one will have mold/a fire/some other issue.

2. Get a real estate appraisal or be confident in the number.
Reply With Quote
  #7  
Old 02-14-2021, 07:29 PM
rockscan rockscan is offline
Senior Member
 
Join Date: Mar 2014
Posts: 5,805
rockscan will become famous soon enoughrockscan will become famous soon enough
Default

Not to mention that the market is weird right now. Toronto sales are falling but smaller cities are booming. You could lock in a rate and it falls by the time you sell.


Sent from my iPhone using Tapatalk
Reply With Quote
  #8  
Old 02-14-2021, 11:44 PM
Helpmyspouse Helpmyspouse is offline
Senior Member
 
Join Date: Feb 2018
Posts: 207
Helpmyspouse is on a distinguished road
Default

Be prepared for your situation to drag on. The lawyers see all that equity so they know their fees are secured. When they say your financials they have already calculated how much they will drain from your family. I don't know how long you've been at this so far but lawyers will stall and drag so they can bill and line their own pockets. It's the cost of divorce and only the lawyers win. I hope your situation will be different but just be aware.
Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Needed advices for prenuptial agreement and matrimonial property. davidyuz Financial Issues 4 06-16-2006 12:13 PM
Couple of quick questions... Les Financial Issues 8 02-06-2006 01:50 AM


All times are GMT -4. The time now is 01:02 PM.