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How is a purchase of a Pre-construction condo treated as asset deduction at time of marriage?

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  • How is a purchase of a Pre-construction condo treated as asset deduction at time of marriage?

    In a scenario where a pre-construction condo property was purchased in Ontario, Canada by one spouse (with a signed Agreement and Purchase and Sale) prior to marriage and owned on Marriage date, would only the deposits of the total purchase price (approx. 15-20%) be considered OR if a professional appraisal was done on the property and it appraised at or near the contracts stated full purchase price be considered? Additional Facts: The condo was under development on marriage date. The condo was held throughout marriage up until separation date. There was no title/ownership on marriage date because it was pre-con, however, it was only later in the marriage when title/ownership was given.

    Basically, what could potentially be considered in terms of deduction of asset at time of marriage: only the deposits that were paid, or could the full appraised value done by a professional appraiser (at the time of marriage date) be considered? Another point to add was that on marriage date, this property could potentially have been sold through an assignment contract at or near full appraised value. Would the courts consider full appraised value or only the deposits made?

  • #2
    I can tell you how it works in most states in the US. Logically, it should be similar in Canada but you'll have to talk to a lawyer to figure that out.

    The first thing you have to understand is marital income and marital property. Every dollar you make and every dollar your spouse makes belongs equally to both of you. If you make 1000 per week and your spouse makes 100 per week, that's 1100 that belongs equally to both of you. Everything you own belongs equally to both of you regardless of whose name is on the deed or the title.

    When you get divorced the court will start with the current appraised value and subtract the mortgage balance, leaving the equity which you both share equally.

    You may claim that the money you put in before marriage should be deducted from your spouse's share. That's subject to negotiation but ultimately up to the court to decide. Frankly, the longer the marriage the less relevant the premarital deposit becomes.


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