Net family property and the equalization payment

dadtotheend

dadtotheend

New member
In another thread I offered a spreadsheet that will hopefully give folks some insight as to the mechanics of the calculations that are involved in the equalization payment for property division purposes.

So, here it is!

Please be warned that the spreadsheet is not dressed up and you will get more out of it by studying the methodology and if you know Excel, but it does give a pretty good example of how one can calculate:

-Net Family Property
-the Equalization Payment, and
-the adjustments used to arrive at the final payment made to settle property division...

...for a married person with a matrimonial home. Bonus points if you make the necessary adjustments to account for common law, or other, situations!

I'm fearful that it will provoke more questions than it answers, but hopefully it helps some folks figure out the calculation.

Please feel free to post questions/comments - I think :):)
 

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mortgage principal

mortgage principal

I see on this form house expenses being split. I have lived in the matrimonial house since she moved out in Feb/07. I have paid all household expenses since then.Should I be claiming half of all payments ?
I would owe her rent for her half but expenses would be much higher than the rent.Any suggestions
 
I want to make it clear that I am not a lawyer and am not qualified to give legal advice. I just have a good understanding of the mechanics of the equalization calculation.

An attempt to answer this question was made in your thread called "Matrimonial home".

That said, I think...

If today's value of the house is used and the person who stayed in the house paid the expenses after the other spouse moved out, then the person who paid the expenses can claim half of the mortgage principal, property taxes, insurance and improvements (but not other expenses) that the other spouse is responsible for but didn't pay between move out date and settlement date.

If the separation date value of the house is used, then this adjustment isn't made.

Of course, this just creates an opportunity for argument as each spouse can seek to rely on the valuation date that will be most advantageous to him/her. It would be interesting to hear from anyone who had that happen to them.
 
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as you can see I am no lawyer either...I find so much info online but it is ahard to make sense of it all. It is simple math but as soon as emotions and egos get involved ....It gets complicated. My ex is on her third lawyer and I do not know why? I have a feeling the lawyer's have told her her chances of a judge agreeing with her and she fired them for that reason.
Does a lawyer have a duty to tell a client the odds of the outcome if it was to go to court?
 
vstar33 said:
My ex is on her third lawyer and I do not know why? I have a feeling the lawyer's have told her her chances of a judge agreeing with her and she fired them for that reason.
Does a lawyer have a duty to tell a client the odds of the outcome if it was to go to court?
Click to expand...

Please start another thread for that question.
 
OK so I bought the house the year before I got married. Nine months after the wedding my wife moved out and I have been living in the house. We have not yet gone to court. Is she entitled to half the value of the house because she has never made a payment or contribution towards it at any time. If that is the case I will move out and let the bank take it over.
 
She is entitled to half the equity in the house, regardless of how much equity was there when she moved in. If you were common-law then you would deduct the equity you had when she moved in from the equity when she moved out and that difference would be split. Effectively, the day you married her, you gave her half the equity.

You could try for a claim for unequal division of family property based on it being such a short marriage and her non-contribution, but my understanding is that it a difficult claim to make and you would have quite a burden. For her non-contribution to be compelling, it can't just be that she didn't make a payment, it has to also be along the lines of her doing absolutely nothing and sitting on her hump while you busted your a** - difficult to prove.

It sounds like there can't be much equity in the house if are willing to walk away from it just so she can't get at it. You're leaving your half of the equity on the table and ruining your credit rating in the process by defaulting on the mortgage.
 
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There is what she can get via the law, and then there is what she might agree to. If overall there is equity in the house from the time before she moved in, and given the extremely short marriage, she may agree that morally she is not entitled to that equity and allow you to keep it. If it seems fair to most people, there is no reason not to present that to her without feeling like you are trying to get away with something. I am all for 50/50 split in most cases, but in this case it from what I know it seems unfair and it would be dishonourable for her to ask for half of what you brought into your short marriage.
 
billm said:
There is what she can get via the law, and then there is what she might agree to. If overall there is equity in the house from the time before she moved in, and given the extremely short marriage, she may agree that morally she is not entitled to that equity and allow you to keep it.
Click to expand...

That's a great point.

It does presume a degree of amicability (is that a word?). I detect hard feelings here, so that outcome may have to be sought with great sensitivity.
 
ok so she is only entiktled ot the equiry in the home not half the appraised value? Cause there is very little equity
 
what if there is no mortgage when she moved in, and it was a short term marriage (she lived in the house for less then one year) what is she entitled to then>
 
JMY said:
what if there is no mortgage when she moved in, and it was a short term marriage (she lived in the house for less then one year) what is she entitled to then>
Click to expand...

Again, half of the equity unless she agrees otherwise or you successfully argue a a claim for unequal division.
 
If today's value of the house is used and the person who stayed in the house paid the expenses after the other spouse moved out, then the person who paid the expenses can claim half of the mortgage principal, property taxes, insurance and improvements (but not other expenses) that the other spouse is responsible for but didn't pay between move out date and settlement date.
Click to expand...

Remind also about half of occupancy rent she might be able to claim...
 
my ex has offered to settle- to buy me out.. what if i want another 32000 dollars ? what do i have to do if i dont want too settle on the agfreed money that he is offering me?
 
I have only been married two years, we own a house together and have no children. My spouse is a waitress, and I am not sure how someone would incorporate tips into her net income? I only make slightly more than my spouse. Combined gross income is less than $100k. Typically how long would spousal support be paid out if we were only married for two years, and considering that my spouse is self sufficient, making a bit less than I, would a judge even bother awarding spousal support? I know that this is all vague speculation.
 
Determining value of home

Determining value of home

We purchased a new home - moved into it and my ex (then wife) moved out in less than 30 days. Move in June 1st, move out June 30 2010

It is 14 months later - the house just sold. Lawyers are holding money in trust until we come to an agreement, my lawyer doesn't seem to know what she's doing - and it's too late to change now.

So based on previous posts - my ex is entitled to half the equity at the time she moved out - how do you determine the value of the house - at the time she moved out - compare to what it's worth now.?

I made all the mortgage payments, taxes, utilities etc.

thanks - any advice would be greatly appreciated.
 
If you were married when you purchased the house, it's value at separation will be divided half and half no matter who paid down or mortgage.....however, if the marriage is short (less than 4 years), you can claim "unequal division". An appraiser should be able to appraise a house for any time in past, but he/she usually wants to see inside the house. What is left after deducting the mortgage from the value at separation is the amount you split with your ex. This is usually done when Family Net Property is calculated.
 
Since the ownership of the house and the separation was less than 30 days apart ... Is it reasonable to assume that the purchase price of the house would also be the value - since it wasn't even 30 days between the two?? Or would the bank appraisal for our mortgage purposes be the value of the house (it also fell within 30 days of separation.)
 
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