who gets what on house sale?

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ahmyHeart

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Bob and Mary lived together for a year.
Bob and Mary then bought a house worth 400K.
Bob put 100K in savings and Mary put 10K of savings into the house.
they got married after they bought the house
Bob paid the mortgage off completely and Mary paid for everything else. It was an even split on expense for each.

In less than 10 years their marriage went kaput.

Do both Bob and Mary get 200K or do they get their respective 100K and 10K first and then split what is remaining (290K).

So does Bob get 245K and Mary 155K?
or do they each get 200K?

thanks.
 
Bob and Mary are legally married.
The house is considered a special kind of asset called the matrimonial home.
It is always divided equally.
If it is worth $400k at separation date, they each get $200k.

However, they may mutually agree to do it differently.
They may also agree to divide it up differently to account for other assets and debts being divided.
 
Rioe is correct about the home.

The 100k in savings Bob had prior to marriage (if able to be proven), would be accounted for in the NFP. This would be in his favour in the end.

The 10k Mary had that went into the mat home is gone into the shared asset and is not accounted for after they are wed.
 
Rioe said:
Bob and Mary are legally married.
The house is considered a special kind of asset called the matrimonial home.
It is always divided equally.
If it is worth $400k at separation date, they each get $200k.

However, they may mutually agree to do it differently.
They may also agree to divide it up differently to account for other assets and debts being divided.
Click to expand...

Spot on....that is the long and short of it really.
 
OhMy said:
Bob (B) Mary (M)
Premarital B 100k. M O

Mat home. B 200k. M 200k
(Shown 50%)

Net fam prop B 200k. M 200k
Minus B 100k. M 0

Mary would owe Bob 50k

Please someone correct me if I'm wrong
Click to expand...

My read on the situation was that both their savings (different amounts) went into the house. Once that happens, it comes out equally. Particularly as they bought the house before the wedding. So nobody had any savings at that point, all their assets were in the house.

This marital home rule is dumb and outdated, in my opinion, but it still exists.
 
OK still confused but getting to the point where I realize that more facts should have been included.

Bob and Mary lived together for sometime before buying the house (~1 year)
so they were common law.
Marriage ceremony took place after the house was purchased.

I thought this was straight forward before reading:
an article in the paper
and
Division of Property - Ministry of the Attorney General
 
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