In terms of the net proceeds of sale of the matrimonial home, what deductions will the wife be entitled to claim?
Download Legal Memo
Regarding the deductions the wife is seeking from the client's one-half share of the net proceeds of sale of the matrimonial home, it is doubtful that she would be entitled to be credited for one-half of the payments she made to any of the debts during the marriage, whether associated with the matrimonial home or not.
With respect to the payments the wife made toward the mortgage and repayment of the down payment from her parents, her entitlement to be credited one-half of these amounts may depend on whether she continued to occupy the matrimonial home after the parties split and whether the client is claiming occupation rent.
The costs of disposition of assets can be deducted from the proceeds of sale, when that sale is “more likely than not”. However, if such a disposition is speculative, no costs will be deducted.
If the secured line of credit, consolidated debt with the bank, and a debt to another bank are in the parties' joint names or were debts incurred for family purposes, the client continues to be jointly liable for these debts. Therefore, the wife should be credited for one-half of all payments she made toward these debts since the parties separated.