Protecting Your Matrimonial Home Equity: The Power of Preservation Orders
Introduction
Marital disputes can be a trying time for any couple. As emotions run high and tensions escalate, one significant concern that often arises is the possibility of one spouse depleting the equity in the matrimonial home or disposing of it altogether. This concern is particularly alarming when the home is solely owned by one spouse, who may attempt to hide or dissipate the assets. In this blog post, we delve into the details of how a preservation order can help prevent these actions and safeguard your home's equity.
The Role of Preservation Orders
In the realm of family law, a preservation order is a potent tool that can offer critical protection to your matrimonial home's equity. This type of order is typically sought when there is a fear that one spouse might dispose of the home or significantly reduce its equity. These orders, also known as non-dissipation or restraining orders, restrict any dealings with the property, thereby preserving its value. The power of a preservation order lies in its ability to prevent one spouse from unfairly manipulating the financial standing of the matrimonial home, thus ensuring that its value is retained.
Preservation Orders
Preservation orders serve a crucial role in preventing the improper disposal or dissipation of the matrimonial home. These orders can be complex and must be handled with care to ensure they are effective. They are not to be taken lightly, and it's essential to understand their implications fully. They limit a spouse's ability to sell, mortgage, or in any other way deal with the matrimonial home. This means that the home cannot be sold or its equity reduced without the other spouse's knowledge and consent, or without a court order.
Registering Preservation Orders
Preservation orders can be registered against the title of the property under section 27 of the Family Law Act, R.S.O. 1990, c. F.3. This registration process is a vital step in implementing the protection provided by a preservation order. Registering a preservation order provides a public notice, signaling to all parties that any attempts to alter the current title are legally restricted. For the sake of clarity and thoroughness, it is advisable to have the request for registration included in the order itself, thereby ensuring best practices are followed.
The Role of a Real Estate Lawyer
The process of registering a preservation order necessitates the expertise of a real estate lawyer. This legal professional will require a copy of the issued and entered order, in addition to the legal description of the property. The client may also need to sign an Authorization and Direction before the order is registered. This step is crucial because it empowers the lawyer to act on the client's behalf in the registration process. Once the order is registered on the title, a "No Dealings Indicator" is activated on the Property Identifier Number (PIN), and the document name is abstracted as "Restrictions Order."
Conclusion
The fallout of a marital dispute can be both financially and emotionally draining, even more so when it threatens your matrimonial home's equity. Fortunately, preservation orders offer a viable solution. By understanding their role, the process of registration, and the crucial role of a real estate lawyer, you can take proactive steps to protect your assets. The knowledge and security provided by a preservation order can serve as a beacon of hope during this challenging time, ensuring that you are safeguarded and your matrimonial home's equity is secure.
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