Personal Finance

Settlement Calculation Problem - GTA Ontario

  • Last Updated:
  • Mar 3rd, 2021 10:58 am
[OP]
Newbie
Jun 11, 2009
23 posts
2 upvotes
Scarborough

Settlement Calculation Problem - GTA Ontario

I was wondering what would the settlement look like if I got married and if the first 5 years there was a divorce?

Me and my parents got a line of credit from their house (House A - $1.5M) (they needed my income to qualify but I am not on the title of that property, I signed a waiver that I would incur the debt of $545K with my parents but have none of the asset to my name). With that line of credit, me and my parents went out and purchased another house (House B - $800K) with my down payment and paid it in full. I also paid the closing costs if that matters. I split the ownership of House B to 80% parents and 20% me during purchasing and their name is on the title of that house. I am paying the month to month line of credit converted to mortgage expense around $2K.

Now fast forward one year and I am planning to get married. If I were to get a divorce without a Marriage Contract how would the settlement calculation look like? Note that both houses are in GTA Ontario Canada if that is of any significance. My income is $82K and my wife to be makes $105K and her net worth is around $60K. Reading the family law act House B would definitely be a matrimonial home how does the calculation differ with that?

After 5 years me and my would be wife plan to remove the line of credit from House A and make it a regular mortgage into House B.

Also how much is a Prenup. I have been hearing from some lawyers it costs like $6K. Is that reasonable? And how long does that take?
1 reply
Deal Addict
User avatar
Jul 29, 2013
1670 posts
1367 upvotes
Ontario
It looks like you only own 20% of the total of house A&B. I think it would have been better to have one house in your parents name and one house in your name to take advantage of no income tax on the sale of your primary residence.

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