Sale of half renovated marital home - what do I do?

[plainNamedDad44]

Hi Community,

my situation is as follows:

1. STBX abandoned marital home over a year ago.
2. Home was under heavy renovation.
3. Renovation work had stopped at the date of separation.
4. An appraisal as of the date of separation of the marital home was done.
4. I am going to seek a court order for the sale of the home.
5. Assuming the order is granted, sale of the home requires completion of the renovations realistically.

My question is :

1. If I complete the home renovations out of my own pocket and the home sells for more than the appraised (@ DOS) value, is STBX entitled to be equalized ?


As always, thanks.

 

[Rioe]

If I complete the home renovations out of my own pocket and the home sells for more than the appraised (@ DOS) value, is STBX entitled to be equalized?

I'm pretty sure she's only entitled to her share of the value at date of separation, provided she hasn't paid any of the expenses since then.

Think of it like how you kept paying the mortgage all by yourself and increased the equity as a result. She would not get a share of that.

If she has been contributing towards the expenses, or continuing to pay half the mortgage, then it would be different. You describe her as abandoning it, so I'm guessing that is not the case.

 

[plainNamedDad44]

I'm pretty sure she's only entitled to her share of the value at date of separation, provided she hasn't paid any of the expenses since then.

Think of it like how you kept paying the mortgage all by yourself and increased the equity as a result. She would not get a share of that.

If she has been contributing towards the expenses, or continuing to pay half the mortgage, then it would be different. You describe her as abandoning it, so I'm guessing that is not the case.

R - thanks for the reply.

 

[seekinghelp]

If you can afford it (or maybe get a loan) and you are willing to take the extra risk, you may want to consider paying her share out so that the home is completely in your name. I'd try to roll it into the separation agreement if you are still working towards that. It could be a nice investment opportunity, to complete the reno and sell it at an higher price.

 

[FB_]

Is her name on title?

If it is it has nothing to do with your marriage and is now a property issue. Therefore half the house is hers no matter what therefore half the value. You would have to options.

Get her to agree that you get any money you put in back first before the 50/50 split
sell it as it is and split it 50/50

 

[standing on the sidelines]

just keep all receipts and dcoument the hell out of it. Better to have too much then not enough to prove time and money spent on it.

 

[plainNamedDad44]

Is her name on title?

If it is it has nothing to do with your marriage and is now a property issue. Therefore half the house is hers no matter what therefore half the value. You would have to options.

Get her to agree that you get any money you put in back first before the 50/50 split
sell it as it is and split it 50/50

That hardly seems fair. I pay property tax, mortgage and upkeep. I can understand half the value at the date of separation but not afterwards.

Can anyone please clarify ?

 

[movingON1975]

I had to split the value of the home on sale date. The house had gone up in value about 25% from separation date.

I had gotten an appraisal on separation date. And I had done some significant work since septation date. I was told I could have a "refund" against my direct material purchases, but that's it. The appreciation would have to be shared.

She left town, and moved 4 hours away, on her own. BUT because I helped her pack her sh1t into the u-haul, it became me 'kicking her out'. Next time id leave (burn?) her stuff on the front lawn....


my advice would be to buy her share out now, at the current value. then fix it up and sell it for your return. OR just sell it as is (even if its fair market value to a trusted family member).

If you increase the value before the house is transferred there will be a fight over the increase in value... suddenly she will argue that she had to leave because she didn't feel safe, etc... if there is "free" money involved people get greedy ...... however individual experiences in greed may vary...


**edit - I too had paid all taxes, mortgage, up keep on the house during separation. Oh she tried to claim occupational rent too......

 

[plainNamedDad44]

I had to split the value of the home on sale date. The house had gone up in value about 25% from separation date.

I had gotten an appraisal on separation date. And I had done some significant work since septation date. I was told I could have a "refund" against my direct material purchases, but that's it. The appreciation would have to be shared.

She left town, and moved 4 hours away, on her own. BUT because I helped her pack her sh1t into the u-haul, it became me 'kicking her out'. Next time id leave (burn?) her stuff on the front lawn....


my advice would be to buy her share out now, at the current value. then fix it up and sell it for your return. OR just sell it as is (even if its fair market value to a trusted family member).

If you increase the value before the house is transferred there will be a fight over the increase in value... suddenly she will argue that she had to leave because she didn't feel safe, etc... if there is "free" money involved people get greedy ...... however individual experiences in greed may vary...


**edit - I too had paid all taxes, mortgage, up keep on the house during separation. Oh she tried to claim occupational rent too......

Most excellent posting. Thank you movingON !!!!

Moderator, this is definintly stick material for others.

 

[movingON1975]

Most excellent posting. Thank you movingON !!!!

I'm glad you could learn from my follies.

 

[Janibel]

Most excellent posting. Thank you movingON !!!!

Moderator, this is definintly stick material for others.

Yes I agree, this is the best way to handle it. I'm stuck in a similar situation. Separated almost 3 years and am waiting for division of assets to buy out the ex. Until that time I will not put a dime into the family residence aside from normal maintenance, though I have been itching to do some renovations. I know for a fact that whatever time, money and energy I invest into the home I will never see the light of day.

Ex wants to patiently wait for his 50% while I pay the bill for prepping the house, taking care of the realtor and paperwork plus the up-keep until the home is sold?... right. It could take a while for the house to sell in this slow market. Why should I invest my money to help the EX build equity? This is why it's critical to have the home evaluated ASAP after date of separation.

 

[DowntroddenDad]

Yes I agree, this is the best way to handle it. I'm stuck in a similar situation. Separated almost 3 years and am waiting for division of assets to buy out the ex. Until that time I will not put a dime into the family residence aside from normal maintenance, though I have been itching to do some renovations. I know for a fact that whatever time, money and energy I invest into the home I will never see the light of day.

Ex wants to patiently wait for his 50% while I pay the bill for prepping the house, taking care of the realtor and paperwork plus the up-keep until the home is sold?... right. It could take a while for the house to sell in this slow market. Why should I invest my money to help the EX build equity? This is why it's critical to have the home evaluated ASAP after date of separation.

It goes both ways. Despite the financial incentive for her to maintain the house ( I was paying all the bills as she didn't work), my ex's maintenance of the house went downhill. Mould problems increased, the yard wasn't taken care of and my dining room set, which I inherited from my grandparents but allowed her to use, was damaged.

So earlier evauluations could benefit both parties.

 

[Carnut]

I think many THINK that the value can be based on date of separation if the spouse that left contributes nothing whatsoever and you have appraisals stating worth at time of separation and the mortgage amount due at time of separation.
I now believe that is wrong.
I am in a similar situation, my ex would not come to an agreement the last two years. She just stalled and stalled. I now believe it is because the house market was at a bad low when she left, which we both knew and talked about. I got SIX appraisals done. Waiting two years and not contributing in any way she is now seeking half the current value, half the current house value down to half the current mortgage owing, even though she never contributed anything whatsoever since leaving.

I read many posts on here stating it is value/equity in the matrimonial home at time of separation but I believe those who have stated that are actually wrong.
I'm in BC if it matters.