I am in a common law relationship in ontario and we purchased a home one year ago. The house is only in my name because he had credit problems. I put down 60% of downpayment and he put 40%. we pay mortgage & bills equally. We've decided to go our separate ways and sell the house. He wants 50% of the proceeds. I told him we should each get back what we put in 60/40 and split anything else 50/50. What am i legally required to do?
Division of home
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This should explain things :
http://www.lians.ca/documents/2011_11_24_Epstein-Kerr_v_Vanasse_(00004681).PDF
You'll be entitled to to what you put into it, and splitting the difference whether loss or not. Remember you'll have realty fees, lawyers fees, and interest penalty charges for discharging mortgage early.
If he goes for 50/50 he'll have to do so under a constructive trust with a claim for unjust enrichment. It'll cost him more in legal fees than he's looking for I would suspect.
http://www.lians.ca/documents/2011_11_24_Epstein-Kerr_v_Vanasse_(00004681).PDF
You'll be entitled to to what you put into it, and splitting the difference whether loss or not. Remember you'll have realty fees, lawyers fees, and interest penalty charges for discharging mortgage early.
If he goes for 50/50 he'll have to do so under a constructive trust with a claim for unjust enrichment. It'll cost him more in legal fees than he's looking for I would suspect.
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billm
New member
Your idea is fair.
His is not.
Just based on what you said - meaning that it seems that way to me if that is all there is to the story.
Actually you should get more than 50% after the down payment is repaid to the two of you 60/40.
You put down 50% more down payment that he did, so you tied up more money in the house and so you should get more even after you get your down payment back - but it wouldn't amount to much. I would just use your idea.
His is not.
Just based on what you said - meaning that it seems that way to me if that is all there is to the story.
Actually you should get more than 50% after the down payment is repaid to the two of you 60/40.
You put down 50% more down payment that he did, so you tied up more money in the house and so you should get more even after you get your down payment back - but it wouldn't amount to much. I would just use your idea.
It is useful to translate disputed amounts into 'lawyer hours'.
I'm guessing there will be NO proceeds (after legal/realtor fees) after only one year of ownership. So the issue is how to split the downpayment: 50-50 or 40-60. if your DP was $100,000, then this is about $5000 ... which is equivalent to 16 lawyer-hours (at $300/hour). Typical retainer is over $2500 (i.e. up-front cash to lawyer to go 'on account').
In your case you hold the bag because only you are on title, so it is up to him to take action if he is not happy with getting just his 40% back.
I'm guessing there will be NO proceeds (after legal/realtor fees) after only one year of ownership. So the issue is how to split the downpayment: 50-50 or 40-60. if your DP was $100,000, then this is about $5000 ... which is equivalent to 16 lawyer-hours (at $300/hour). Typical retainer is over $2500 (i.e. up-front cash to lawyer to go 'on account').
In your case you hold the bag because only you are on title, so it is up to him to take action if he is not happy with getting just his 40% back.
OrleansLawyer
Active member
With the house entirely in your name you really do hold the cards.
He could make a claim for unjust enrichment to regain the money he put in, retrieving, at best, a share of proceeds in proportion to his deposit. But there are people in your position who would offer him a quarter of the proceeds since, without name on title, he'd have to really dig to get a chunk out of you.
He could make a claim for unjust enrichment to regain the money he put in, retrieving, at best, a share of proceeds in proportion to his deposit. But there are people in your position who would offer him a quarter of the proceeds since, without name on title, he'd have to really dig to get a chunk out of you.
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