What happens when the matrimonial home is owned by a parent or parent-in-law?

With the rising real estate values, it is becoming more common that homes are either jointly or solely owned by one of the parties’ parents.

If the matrimonial home that the parties primarily reside in is solely owned by a third party (for instance, the parent or parents of one of the parties in the dispute) and there is a clear understanding that the parties and the third party are in a landlord-tenant relationship then this fact is not likely to create additional complexities in your matter.

However, if the matrimonial home that the parties primarily reside in is solely owned by a third party, and the parties paid all bills and put a significant amount of family funds into the property, it can add certain complexities to your matter and may an impact on net family property.

Depending on the circumstances, the party whose parent is not an owner of the property, may be able to and may wish to make a trust claim or argue a joint family venture or unjust enrichment against the titled parent. More specifically, this claim may be made if a spouse is able to prove that the parties contributed to the home in ways that would distinguish them from a tenant. These types of contributions may include but are not limited to:

1. Major renovations or repairs done to the property, including a new roof, new furnace and/or air conditioner;
2. Paying the property taxes on the property;
3. Utility bills and other bills for the property listed in your or your spouse’s name; and,
4. Putting significant labour into the home above and beyond what a tenant would be expected to do for a rental property.

For more information, contact one of our experienced family law lawyers at Krol & Krol by calling 905.707.3370.