Equalization issues

[backinthesaddle]

So ex went ahead and drafted up his own separation agreement but paid a lawyer to do it legally with his info. We both want to do this swiftly and without cost to both of us but he is high conflict so I am just going along to see what the end result was going to be. We left out issues such as pension (he would owe me), debts incurred like credit cards and value of vehicles and toys (boat, seadoo etc) and the fact he kept all the furniture. It's just furniture and stuff as far as I am concerned. So, he got the agreement back from his lawyer and with the numbers crunched with just properties he owes me 80K. Ex then footnotes " I can't pay you any money. I would have to sell my house and other personal items" " If you make me pay I will go after you for paying me while I lived in the matrimonial home for 2 years and get your for spousal support and child support". Current agreement has none of this. We had a signed agreement back then he would live in that home and I would live in mine and each not liable to the other so he is just being a bully. He wants me to take over a rental home that I do not want any part of anymore. I have managed it for years and just want to sell it. He has refused and made it part of "my asset". There is almost 50k of capital gains to be paid. The gain becomes part of my annual income for that year. ie 150k capital gain plus 75k of employment income give me an annual income of 225k that would affect a lot of things...child tax benefit and my children's OSAP etc. How does one get around this? I would agree to be paid out cash at a later date in order for ex to keep his house for the kids etc. Is there such thing as a lien put on the home that if there is the sale of a the home or another person moves in then I am paid what I am owed?

 

[tilt]

Lol at the “we want to do this without cost to both of us”. Actually, he is trying to avoid any cost and making you shoulder the thousands (hundreds of thousands?) of dollars in cost all by yourself. Penny-wise and pound foolish.

Being a doormat with a high conflict person actually makes things more difficult for you. Basically, it is a big flashing neon sign that tells the person you will do anything to avoid conflict, and like a predator they will hunt you down mercilessly.

Do a proper comparison of net family property, hire a lawyer for ALL legal communication (and limit your communication with the ex to co-parenting logistics), divide strictly 50/50 as per the family law act, and you will find your life much easier.

How he finances the equalization payment is his problem and if he complains to you immediately re-direct him to your lawyer. Doing things properly will also most likely help with the capital gains issue you are concerned about. This sounds like a case where a session with a certified divorce financial advisor would save you money. Since he is high conflict you should also meet with a separation coach (just you, not joint) to build up your self-advocacy skills (I can give you a personal recommendation but there are several good ones out there)

 

[EAHusband]

I may be incorrect but I believe if you received sole ownership of the rental property and actually lived there for 7 months. You could sell the rental as your primary residence and pay no capital gains.


I have a friend who flips houses and he "splits' with his wife every couple of years to beat the taxes on the houses he flips.


Now I don't know where this rental is so I may not be close to your children so it may not be practicable. But if it is, it maybe worth talking to an accountant about it.


I know if its presently rented and you're going to move into it the renters have to vacate after proper notice - 60 days or something.

 

[EAHusband]

Additionally, you could write into the agreement that if and when you sell you would pay out his share as of the value of the home on the day to signed the agreement or when you actually took it as your primary residence.


If its not close by, you could also do the same but rent a property close to your children and just claim the rental as your primary. Just be sure to change your driver's licence and have the utility bills put in your name to prove residency


Just a thought