Property Ownership After Separation
Introduction
It's never easy to deal with the aftermath of a marital separation, particularly when it comes to dividing assets like the matrimonial home. The first and most crucial step is to determine who owns the property. There are a few different types of ownership that can come into play, and understanding these can make the process a little less daunting.
Joint Ownership
When a property is jointly owned, it means that two or more people hold the title to the property and are registered on title together. Both parties have an equal interest in the property and equal responsibilities to maintain it. The property cannot be transferred without the consent of the other owner. This is often the case for married spouses who hold the matrimonial home jointly. In the event of one owner's death, the property automatically passes to the surviving owner, bypassing the estate of the deceased and potentially avoiding probate fees.
Tenants in Common
Tenants in common is another form of co-ownership where two or more people hold the title to the property, but the division of ownership may or may not be equal. Each owner is entitled to a specific share of the income from the property and must contribute their specific share of expenses. Unlike joint ownership, tenants in common can transfer their shares in the property without the consent of the other tenant. When one owner dies, their share of the property becomes part of their estate, to be dealt with under the terms of their will or the law of intestacy if there is no will.
Sole Ownership
Sole ownership is the simplest form of property ownership, with one person holding the title to the property. They have sole decision-making authority, and upon their death, the property is distributed according to their will or under the law of intestacy if there is no will. However, if a married individual is the sole owner of a home that qualifies as a matrimonial home, they cannot unilaterally mortgage or transfer the property, according to the Family Law Act, R.S.O. 1990, c. F.3.
Conclusion
Understanding the type of property ownership you have is the first step in dealing with the division of a matrimonial home after separation. Whether you're dealing with joint ownership, tenants in common, or sole ownership, it's crucial to understand your rights and responsibilities. Always consult with a legal professional to ensure that you're making the best decisions for your situation.
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