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  • Common Law Home Equity

    I have a question on how to handle home equity in a common law relationship.

    Say I owned a home and begin a common law relationship, I understand that unless the name of that person is on the deed they would have no financial interest in the home upon separation... but if that person pays rent for some number of years, they still could make a claim, even more if we get married at some point, unless a cohabitation agreement states otherwise...

    I'm trying to find a way to protect my investment in the home while still allowing my common law spouse to contribute to the investment instead of just paying rent to me, which seems fair.

    Has anything like this ever been done before? I've read about the moore-marsden calculation where a proportional amount of the equity is calculated based on the initial investment of the original owner spouse and the contirbution by the new spouse.

    If a specific method of calculating the distribution of equity is part of a co-habitation agreement, would this stand up? would it survive a marriage?

  • #2
    My agreement

    I have a cohab agreement with my CL. My home is in my name only, in the agreement it states if we separate and have not married that we will share the equity in the home from the day he moved in with me. I had the home appraised one week before he moved in. So, the home was worth $300k when he moved in, I owed $150k leaving me with $150k in equity.Any equity made after he moved in will be split 50-50 as he pays half of the bills.

    If you get married she will be entitled to 50% of everything. DON'T GET MARRIED! Just kidding I still believe in love and marriage...somewhat..lol.

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    • #3
      backed into the wall

      If you where to put your partner on as 50-50 owner how do you know that they live up to the finnancial obligation to pay 50 per cent and not just live off of you? do you have something in wriiting that he has to pay so much? In my situation he says he does not want that pressure to have to pay. What do you think he is pressuring me and says the agreement has to be done!

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      • #4
        I often wonder where love went.
        I hear people like you asking about co-habitation or pre-nup agreements, don't get me wrong they are a great thing in certain circumstances, and serves to protect some assets.

        But when I hear this kind of thing, I ask myself, how much love is there in this relationship if one or both partners are worried about the other taking something from them. Is there no trust? Shouldn’t trust be right up there with love? What kind of a relationship can a person have if there is no trust and they are always thinking of what they have to loose upon break up?

        Sure I have been burned and thought an agreement would have helped, I walked away with my life from my first marriage, and left the house, the three vehicles (Including a vintage camero) snow machines, boat, and four wheelers etc. Would I make an agreement with a person I want to marry? No. Would I make an agreement with someone I only ever wanted to live with maybe? But I'd have to ask myself, is this someone I see myself living a good portion if not the rest of my life with. If the answer is no, I'd go with the written agreement but I'd also be as up front with the other person so they too know what they are getting into so they too can make an informed decision. Who knows, the other person may see you as their sole mate and not feel the way you do and the idea that you do not trust them may make them rethink things. To answer your question about paying into the home and benefiting from the equity both go hand in hand. If the person moves in and is contributing, even to the basics while you maintain or increase the value, this person, I believe, but I’m no lawyer, has the right to make a claim against you upon the dissolve of the relationship. As they facilitated your ability to allocate income to increasing the equity while they maintained the basics or some of the basics.

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        • #5
          I still love

          I still believe in love, but I felt the need to protect myself and my children. I have worked very hard for what I have and after my first marriage I had to fight him for what I have now. I owe it to my kids to make sure they have money for post secondary school and to have the same life style they had in the past. I work two jobs (75 hours a week) and I don't want anyone to take away what I work for.

          So, the co-hab agreement I have with my partner outlines all the details of who pays what in the household. So far all is working out well.

          Comment


          • #6
            Denisem
            I did not mean to offend you, or imply anything to anyone in particular, I left my husband with the cloths on my back, and I too have worked my butt off for what I have today, and would like to believe I am doing all that is necessary to ensure I never loose it all again.

            If this agreement works for you, then it's what is best for you.
            You have included a Claus that I think would benefit both upon the dissolve of the relationship if you had not married prior to same.

            BestDad may also need to have an agreement like this to feel comfortable in the relationship.

            Comment


            • #7
              Something to add....

              It's sad but true people today entering relationships are scared, the majority men I find. When you get together with someone who has lost in the past they tend to be more realistic on reality and the reality is things change and people can change and nothing is carved in stone. Relationships can go sour quickly and emotions run high. Words are not enough for peope who have lost a lot in the past during a split so something in writing is the way to go for some especially if there are kids involved they need to be protected in all aspects. I think you'll see more and more couples entering into agreements prior to living together as some have way too much to lose if things go sour and in today's world things can go sour lickidy split people just want protection and frankly I don't blame them one bit!

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              • #8
                Well i agree with you both

                I agree with what your are saying and my birhgt lawyer once said that fighting in realtionships always leads to money but i do agree with our senior member where has the love gone and even at this point I have to believe that somewhere there is happiness for all fo us.

                When we split if we lived by a utopian law we would take the time for our kids, there would be no affairns and hooray no lawyers isnt the case.

                I have in the last 8 weeks saw the fangs of a "silver-spooned" woman who literally booted myself and my child out of a home in 20 days with a threat she would stay abroad with my babe if she didnt get her way, not even an ounce of compassion. So I moved my entire life and left a property that had $230,000 in equity in it since we moved in together, yes thats right, lets say the hosuing market went nuts. It had 0 equity when we moved in. I have pumped my blood, swaet and tears into our home and in reality said I would take 50,000 and walk away I was offered 16, 1/18 the value.

                Like i said I agree with both of you and there has to be some protection to ourselves and the futures with our children. i look at my apartment as this is what Im subjected to now as my ex drives a new BMW that she just bought, living in our home, with everything even jointly that we bought and think to myself how the hell are people so selfish in life.

                Anyways guys well written on both of your ends and I dont think anyone was insultive but if there wasnt people out there that have screwed others there would be no horror stories and as a society we wouldnt have to yet want to protect ourselves.

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                • #9
                  You deserve...

                  Great comments on this thread. Lawyers also add the the feeding frenzy as my ex CL went to see a duty counsel at the family court house and now she is using the terms of 'I deserve....', 'I can get a portion of that assest...'
                  My mistake...should have had a co-hab agreement made up before moving in. Now I pay for that error.....life goes on.

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                  • #10
                    It ain't love - it's just good business

                    Personally I think cohab and prenup agreements are an expression of love
                    At the end trying to settle who get's what/who's entitled to what with two people who don't like each other - in some cases who HATE each other is difficult, and emotionally taxing on both parties. I think we all know how slow and draining the process can be.

                    Agreeing on how to settle it (should it, unfortunately end in dissolution) when you both like and care for each other ensures less fighting, less drama, less emotional stress on your partner and you in the end.


                    My partner and I sold our houses and bought one together. I had more $ to put into the new one.
                    Our agreement states that the equity will be split based on the contribution by each party at time of disolution.

                    Comment

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