Common law/Marriage/Divorce question

[max_boost]

Originally posted by Supa Dexta
Is this why zuckerberg got married a day after the stock hit? Assets before marriage are safe?

Totally forgot about posting this until I saw this post by Supa.

This came up during one of the CCR/Life lesson dinner chat with friends.

Tell me what happens in these scenarios.

1. Guy has $500k house paid off. Meets a girl, dates for a bit and decides to let her move in. Common law, files taxes together, she helps take care of the house and pays 50% of the bills.

5 years later they break up, the house is now worth $600K.

How much does she take?
Does the situation change if they were married from day 1 and not common law?
What if the house did not appreciate and was still only worth $500K?
Does time of relationship matter? What if they only did this for only 1-2 years instead of 5?

OK discuss.

[max_boost]

Me: Assets before marriage are safe. House goes up $100K, you give her $50K when you break up.

Buddies: You live together for a year, she takes half. House is worth $600K, say good bye to $300K.

[JLau]

i am almost sure she takes 300k, unless if they've signed an agreement before she moved in. I am pretty sure it goes the same with marriage too, once married everything is split equal unless they've signed an agreement. If they did, it would be anything accumulated after being married or common in law would be splitted equally

[rage2]

Originally posted by JLau
i am almost sure she takes 300k, unless if they've signed an agreement before she moved in. I am pretty sure it goes the same with marriage too, once married everything is split equal unless they've signed an agreement. If they did, it would be anything accumulated after being married or common in law would be splitted equally

Wrong.

max_boost is right. She is only entitled to appreciation of assets from the day of common law or marriage, to the day of separation. And specifically, assets under both names in case of common law.

If they can take half of everything, gold digging would be much more rampant lol.

You should invite me to these life lessons. I'll school all you punks!

Anyways, answering questions 1 by 1.

Originally posted by max_boost
How much does she take?
Does the situation change if they were married from day 1 and not common law?
What if the house did not appreciate and was still only worth $500K?
Does time of relationship matter? What if they only did this for only 1-2 years instead of 5?

1. Common Law, $0 (unless her name is on title as well, then $50k). Marriage, $50k. 1/2 of appreciation.

2. See #1

3. She gets nothing.

4. No difference.

[max_boost]

Nice boss. I won't out the buddies who argued with me. They are two reputable OG members LOL and one even threw down the "I minored in law" at Uni, believe me.

[rage2]

They may have minored in law, but I majored in gold diggerism.

My gf is sitting beside me laughing, because she saw me typing with such intensity, she knew I was responding to this post haha. She rocks.

[baygirl]

Here's a question:

Couple are married. They separate, one moves out but refuses to sign the papers to sell the house. It has been a year and still refusing to co-operate. If the value of the house has increased since this person moved out, do they get the value of the house when they moved out, or when it sells?

[Clever]

If they bought the house together then basically they split the value in half. If the house was acquired before the marriage, the wife/ husband whoever is not on the title will have dower rights that basically give them ownership of the home which then has to be sorted out before they can even consider selling the house. Then read what Rage wrote.

Edit: unless a pre-nup is involved.

[flipstah]

Originally posted by rage2

Wrong.

max_boost is right. She is only entitled to appreciation of assets from the day of common law or marriage, to the day of separation. And specifically, assets under both names in case of common law.

If they can take half of everything, gold digging would be much more rampant lol.

You should invite me to these life lessons. I'll school all you punks!

Anyways, answering questions 1 by 1.


1. Common Law, $0 (unless her name is on title as well, then $50k). Marriage, $50k. 1/2 of appreciation.

2. See #1

3. She gets nothing.

4. No difference.

Doesn't the 'fully paid' property belong to the person(s) in the deed (the boyfriend)? So not sure why all of a sudden, she gets half just because she lives with me.

[JLau]

Sorry, but I think Rage2 is wrong

If no prenuptial agreement, tough luck....

http://www.divorcemag.com/articles/F...agreement.html

[JLau]

http://www.canadiandivorcelaws.com/p...-divorce-laws/

[Clever]

First rule of Beyond: Never question Rage2 make sure those links you posted apply in our jurisdiction.

[JLau]

ya, i should know better lol...

[CanmoreOrLess]

These things get uglier when retired money is involved as the sums are generally higher and the gold diggers are everywhere. In 1997:

A relative of mine (old farmer), retired twenty years marries (in Texas) a USA waitress (Denny's type place) half his age. He has a place in Texas and enough cash to buy two new premium (60K plus) vehicles every year. They are together for 10 months, she files for divorce as living with a 72 year old is not easy when you are 35. Lawyers involved, word given she is entitled to half of everything he has (USA laws), everything. His assets are in excess of $5,000,000, she settles for the furnished $700K house in Texas, the new Lincoln and her vast clothing collection. "You got off easy (she was entitled to half of his assets under USA law)" his longtime 80 year old Manitoba lawyer told him, the same lawyer told him to "get a pre-nup, otherwise she will take you to the cleaners". The same lawyer told me "Old farts and young broads, I could make a nice practice out of this bullshit if I wanted to work more than a couple days a week".

He was lucky his assets were in Canada, well most of them. Southern ladies and their charm, beware oil money barons.

[rage2]

Originally posted by JLau
http://www.canadiandivorcelaws.com/p...-divorce-laws/

The increase in value of a couple's assets during their marriage is divided equally between them when they separate. Important: It is not the actual assets that are divided, but the *value* of the assets, which are divided.

How am I wrong? That's exactly what I said.

The only difference in family home is covered in the Dower Act, which is summarized in your article as well:

Second, it doesn't matter who has their name on the papers for the house, both spouses have a right to live in the matrimonial home.

[The_Rural_Juror]

If the assets depreciate, does the loss (debt) get split too?

[kvg]

Or be smart and get a cohabitation agreement in place. Want to hear a real good one? Say you marry a girl with a kid and you raise their standard of living, then you get divorced. Even if she gets child support from the father since the child's standard of living was increased you can be on the hook for child support to maintain the child's standard of living.

[rage2]

Originally posted by The_Rural_Juror
If the assets depreciate, does the loss (debt) get split too?

Yup. Credit cards, etc. get split, hence it's very important to establish the legal date of separation, so that your ex can't run up your CC's and force you to pay half.

Anything after the date of separation, on your own for assets and liabilities.

[JLau]

Originally posted by rage2


How am I wrong? That's exactly what I said.

The only difference in family home is covered in the Dower Act, which is summarized in your article as well:

Hmm, they split the whole house, not just the appreciation of the house

"Barb has a home worth $250,000. Joe moves in after they marry, and they use the home as their marital home. When they divorce, the home is worth $400,000. The court is very likely to decide that Barb made a gift to the family, classify Barb's home as a marital asset, and split the entire asset. "

[rage2]

Originally posted by JLau
Hmm, they split the whole house, not just the appreciation of the house

"Barb has a home worth $250,000. Joe moves in after they marry, and they use the home as their marital home. When they divorce, the home is worth $400,000. The court is very likely to decide that Barb made a gift to the family, classify Barb's home as a marital asset, and split the entire asset. "

Definately not in Canada.