Home value increase after separation

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Henry

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My wife of 25 years left the family home two years ago leaving me with two daughters one of whom was 15 at the time, who is still living here. The home is in both the ex and my names and has no mortgage owing.

Time has now gone by and seperation documents are being worked on, I am about to visit my lawyer to review mine. Two years ago my ex and I had seperate valuations on the property which both agreed its value.

My question is, next June, when said daughter will be 18, my ex expects her half of the value of the house at it's (possible) June 2013 value.

Am I right in thinking that she may be entitled to the half of its market value when she left in August 2010.

Thank you for any insights.
 
Henry said:
My wife of 25 years left the family home two years ago leaving me with two daughters one of whom was 15 at the time, who is still living here. The home is in both the ex and my names and has no mortgage owing.

Time has now gone by and seperation documents are being worked on, I am about to visit my lawyer to review mine. Two years ago my ex and I had seperate valuations on the property which both agreed its value.

My question is, next June, when said daughter will be 18, my ex expects her half of the value of the house at it's (possible) June 2013 value.

Am I right in thinking that she may be entitled to the half of its market value when she left in August 2010.

Thank you for any insights.
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You are correct. The house would be valued at the date of separation, which would be two years ago.
 
Unless she continued to contribute to the mortgage/maintenance, she is only entitled to the 1/2 the value as at the separation date.
 
The ex contributed to half the costs (bills, no maintainance) as if living here, for eight months after leaving.
 
Henry said:
The ex contributed to half the costs (bills) as if living here, for eight months after leaving. She also wanted to come back for Sunday family dinners...
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Then you should determine that date for the date at which her entitlement to future growth ceased.
 
The day that my ex left she gave up, according to legal advice, exclusive possession of the house. She paid her half of the bills (I presume) as my daughter was still here with me, maybe a type of child support. Just wondering what the concencus was before I see my lawer to review the sep statement.
 
You are correct. The house would be valued at the date of separation, which would be two years ago.
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This would be true, except for:

The home is in both the ex and my names
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She owns 50% of the property today, and therefore the present market value.

In calculating NFP it is a wash either way (today value vs today value or SD value vs SD value), although the separation date value is what matters. In terms of making the transaction, her investment in the house will likely turn her a profit over the years. Which, if you have not been providing her with consideration, is fair since her money has been tied up in the house for these years.
 
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Not sure what NFP and SD are. She may own half of the house as both of our names are on the deeds, but giving up that exclusive possession,I was advised that she needs now to ask my permission to enter the house (I can even change the locks if I care to) plus it continues to be the family home for our daughter, (which meant that she could not easily persuade a judge to force me to sell), does that not affect things bearing in mind my original question. Thanks.
 
Not sure what NFP and SD are.
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NFP = Net Family Property; it is used to calculate the value of an equalization payment, if any, from one party to the other upon the breakdown of a marriage.
SD = Separation Date

She may own half of the house as both of our names are on the deeds, but she walked away from it (giving up that exclusive possession)and I was advised that she needs now to ask my permission to enter the house (I can even change the locks if I care to) plus it continues to be the family home for our daughter, (which meant that she could not easily persuade a judge to force me to sell), does that not affect things bearing in mind my original question.
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Exclusive possession is the use of the property; it does not affect her ownership of it. She owns an interest in the property which will be valued at whatever that interest is worth.
 
OrleansLawyer said:
This would be true, except for:


She owns 50% of the property today, and therefore the present market value.

In calculating NFP it is a wash either way (today value vs today value or SD value vs SD value), although the separation date value is what matters. In terms of making the transaction, her investment in the house will likely turn her a profit over the years. Which, if you have not been providing her with consideration, is fair since her money has been tied up in the house for these years.
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Good point ... overlooked that part.
 
It's still half her house. Her name is on the title. Who has possession does not effect ownership.

The value should be the day you buy it from her, the same as any real estate transaction - you agree to a price, you agree to a timeline.

You have been living in (half) her house for free - you should also be compensating her for occupational rent. Other things may play against that such as support obligations etc.

I find the date of valuation to be something that has potential for fighting. But it shouldn't. As long as people are clear about the price and a timeline for when a buyout will happen, it should be a done deal.

Its really all about risk and the value of the equity - when does someone assume the risk that the house may go down in value and is someone unfairly enriched by holding on to the equity of the other.

It's easy to fight over an increase in value, but what would you be saying if the house value had dropped significantly since August 2010?
 
OrleansLawyer said:
This would be true, except for:


She owns 50% of the property today, and therefore the present market value.

In calculating NFP it is a wash either way (today value vs today value or SD value vs SD value), although the separation date value is what matters. In terms of making the transaction, her investment in the house will likely turn her a profit over the years. Which, if you have not been providing her with consideration, is fair since her money has been tied up in the house for these years.
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Totally agree, when I seperated from my ex my lawyers advice was to get rid of the property because no matter what you do to the property or however long you own it, your ex partner gets 50% of the profits from the SALE of the house. Unless you are buying her out at which point it is 50% of the valuation. My lawyers advice was to get rid of property that she could come back later and argue fairness. (ie she doesn't like the valuation next year)
 
Varied points all, thank you.

I intend to buy out my wife next June or before. Maybe its worth a mention (though legally probably not) that I have spruced up and maintained the house these past two years. Living here rent free? apparently when a parent leaves the family home leaving underage children behind, certain legal wheels start turning to protect them. I tried to hold onto a semblance of stability here for our daughters while their world turned upside down.
 
Henry said:
...apparently when a parent leaves the family home leaving underage children behind, certain legal wheels start turning to protect them. ...
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Hmmm sounds vague.

Best to keep things simple and business like when dealing with money matters.
 
...to clarify, in the words of my lawyer, my ex could 'not easily force' the sale of the house till (daughter) turns 18.
 
Henry said:
...to clarify, in the words of my lawyer, my ex could 'not easily force' the sale of the house till (daughter) turns 18.
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Do you mean force you to equalize and buy her out? I doubt that it is true you could stop that. I have never heard that equalization has to wait if it means selling the matrimonial home when there are children involved.

If you mean force the sale of the house even if you can and want to buy her out, I would agree that she could not do that - but she could force you to buy her out OR sell the house, which ever you chose. And not have to wait for the children to be adults.
 
I was in evacuation mode for my daughter and myself for over a year as my ex stated that she needed her half of the house out as she could not afford paying her rent without it. I spent an hour with a lawyer who told me that, as our daughter was underage my ex would 'not find it easy to persuade a judge to force the sale of the house'.
 
I think you misread what billm stated... it was said that she may not be able to force the SALE of the house but she CAN force equalization... if it so happens you can't afford to buy her out right now, the house will have to be put up for sale for you to pay the equalization... or borrow the money from somewhere.
 
Forced equalization has not been mentioned either by the lawyer who I spoke to last year, or my ex, but I see your point. I have seen her sep. statement and we are equal on paper, although there is the matter of her vanishing RRSP's which I posted about on this forum recently. In the end her family bailed her out, lending her a considerable sum of money to start over. We are cordial and not at each others throats, I have been the one now wanting a divorce. Had enough of years dealing with someone else's 'mid life crisis'.
 
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