House Buy-out

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JBM

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Hello everyone,

My wife and I have come to an agreement and I am going to buy out her portion of the house. Can someone please steer me in the right direction as what to do next? I assume I have to talk to a lawyer but would like to know more about the process before I do. As well, if anyone could give me a rough idea of how much the fees might be for buying/transferring the house to my name that would be appreciated.

Thanks very much,
 
JBM,

You need a separation agreement in place that details the buyout as it is the matrimonial home. Without an agreement in place that details the instrument and transaction, a net equalization payment could come back and haunt you.
Best to do it now, while all parties are on good terms.

At the same time you could deal with other issues and perhaps get everything finalized.
 
Legal Fees

Legal Fees

Thanks. We have figured out the money issues for the house and have an separation agreement drafted, but it's at this point I'm not sure what to do or what to expect in terms of legal fees. Any information would be great.

Thanks very much.
 
Do you mean legal fees involved in the transfer of the house or legal fees to have the separation agreement done?
 
Legal Fees for house transfer

Legal Fees for house transfer

I was wondering what the legal fees for transferring the house might be?

Thanks
 
Equaulaizatoin payments

Equaulaizatoin payments

I've heard this term several times ... what does it mean?

Hubby
 
It's how you divide up the assets. One party may owe the other party an equalization payment. Say one spouse keeps the house valued at $200,000. Then the other spouse is owed $100,000. as an equalization payment.
 
The equalization payment in Ontario is as follows:
You and your spouse makes a list all of your net assets amd liabilities (mortgage loan, etc) you had before marriage date and at the separation date. Matrimonial home is divided 50-50, but assets (Mutual Found, term deposit etc.) are not.


bank deposit
 
sml said:
The equalization payment in Ontario is as follows:
You and your spouse makes a list all of your net assets amd liabilities (mortgage loan, etc) you had before marriage date and at the separation date. Matrimonial home is divided 50-50, but assets (Mutual Found, term deposit etc.) are not.
WIFE HUSBAND

bank deposit $ 5 000 $ 50 000
car $15 000 $ 20 000
Loan - $ 3 000 - $ 5 000

Net assets
before marraige: $ 17 000 $ 65 000

house $100 000 $100 000
Mortgage - $ 50 000 - $ 50 000
Bank accounts $ 10 000 $ 20 000

Net assets at
separation date: $ 60 000 $ 70 000

Net assets: 60 000-17 000= $43 000 70 000-65000 = $5 000

Wife has more assets than the husband so she pays half of the difference to the husband : 43 000 - 5 000= 38 000 so she pays $ 19 000 This is the equqlization payment.

If husband wants to buy the wife's interest the calculation has to be modified.
Click to expand...
 
sml wrote: "Matrimonial home is divided 50-50, but assets (Mutual Found, term deposit etc.) are not."


I thought that Mutual Funds, Term Deposits acquired during the marriage were a 50-50 split. Logicalvelocity, Jeff???
 
All assets -other than the matrimonial home - that one had before marriage date can be deducted from the total net assets. If you had a house before marriage and it became the matrimonial home it'll be spilt 50-50 regardless who bought it or whose name it is on. You are right: everything that were acquired during marriage - between the marriage date and separation (valuation) date- is 50-50 except heritage or gift.
 
I'm also trying to understand this equalization thing as well. If my husband keeps the matrimonial home what determines if he has to pay me equalization? And how does our other debts factor into this?
 
You have to calculate your net assets (deduct any loans andr mortgage) at the date of marriage and at the date of separation, everything bank account, GIC investments, mutual founds etc. The matrimonial home is 50-50. You would come up with two columns one for husband one for the wife. Anything you had before marriage (excluding the value of the matrimonial home, if you had it before marriage) can be deducted from the net assets you had at separation date.
Finally you'll have two numbers. Let's say you have $100 K and your spouse $50 K net assets. Now, you have to pay half of the difference: that is $25 K to your spouse, this is the equalization payment. If the net value of the matrimonial home is $200 K (deducted the mortgage etc.) and you want to buy out the other you have to pay $100K + $25 K= $125 K.
If the other party wants to buy you out she/he has to pay $100-$25 = $75 K.
 
Anyone know how matrimonial property division differs in Alberta. What if there was a 3 year cohabitation period before marriage(does the valuation date of assets change to common-law relationship start or stay with the date of marriage)Seperation date won't change of course. S.C.C. Walsh vs Bona Dec 2002 pretty much says property division under the matrimonial property act deals with a married spouse only and not common-law exceppt in trust claims for unjust enrichment.

Still I am being asked by my lawyer to dig up copious amounts of documents 3 years before marriage started due to earlier courtship and co-habitation period before matrimony.

This seems wrong to me and burden of proof of claim (onus)shouldn't be on me but on the other side to make a claim for for resulting /constructive trust or whatever. Why am I having to prove exemption of assets held before marriage----What am I missing???......anyone??????:confused:
 
Hi Grace
Thanks for the reply
I bought the house with my own money approx 1 year prior to marriage. The lawyer at the time advised joint tenancy to bypass probate in the event of death. This becomes conversion from me personally to Matrimonial home/property and is then divisible between the both of us equally and shared at settlement. As I understand that part of the law and although seems unfair it is acceptable to me(matrimonial home value is equally shared regardless who funded it).
 
I believe in Alberta you must live together 3 years to be common law. Your ex is most likely going to want this taken into consideration. I don't know much about this area of the law. But I can only conclude that you will be arguing over valuation dates.

Hopefully someone with more knowledge will be able to answer your post.
 
Separations of assets.

Separations of assets.

Hello everyone!

I understand the equal split in assets. My home has been paid for several years now. My wifes parents have recently divided some assets and now only is my wifes name been added to the property since she collects the income from this property. How do we then proceed, according to her I have no claim to that property or any of many others.

Extremely in need of advise. :confused:
 
Fees for property splits

Fees for property splits

Depending on the circunstances, there are some fees involved with changing the mortgage, and changing the deed. You might want to talk to a mortgage specialist and real estate lawyer. Many divorce lawyers can change the title for you as well and may just include those fees in your divorce.

Emery
 
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