- When your property is jointly owned, then both of you are jointly retaining Anderson Adams to act as your real estate lawyer on the sale.
- Out of your sale proceeds, on behalf of both of you we pay out the encumbrances registered on title to the jointly owned property: your mortgage including any prepayment charges, and any home equity line of credit you may have.
- You will see on the Closing Funds Summary that on your behalf we also pay out other amounts you jointly owe relating to your house: real estate commission payable to your real estate agent; any amount owing on your utilities bills, any amount owing on your property tax; and your real estate legal fees.
- What is left over is your “net proceeds” and both of you own the net proceeds. That does not automatically mean each of you owns half the net proceeds.
- You cannot expect to get half the net proceeds after close of sale right away.
- Typically the net proceeds of sale are held in trust by Anderson Adams.
- Your net proceeds may not be split equally between the two of you if one of you has a claim against the other’s share. This is something that we do not know about and has to be handled by you or your own separate family law lawyers.
- As your jointly retained real estate lawyer, we act for both of you. We cannot act in a manner that would favour one of you over the other.
- With respect to dividing up the net proceeds of sale, Anderson Adams can act on a joint Direction from both of you, including a Direction which is incorporated into a Separation Agreement that determines how the net proceeds are to be distributed between the two of you. Full financial disclosure from each of you and independent legal advice for each of you is best. And of course Anderson Adams can and will act in compliance with any court Order arising out of a family law proceeding which will tell us how the net proceeds are to be divided.
- Unless you have another source of funds which you can use to close your next real estate deal, you cannot be sure you will have your share of your net proceeds from the sale of your matrimonial home in time to complete that purchase.
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