Matrimonial Home Owned by Parents-in-Law in Ontario

With rising real estate values, it is becoming more common for homes to be 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 — and there is a clear understanding that the parties and the third party are in a landlord-tenant relationship, 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 the bills and invested significant family funds into the property, it can add complexities to the matter and may have an impact on net family property.

Depending on the circumstances, the party whose parent is not the owner of the property may be able 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 can 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:

• major renovations or repairs done to the property, including a new roof, new furnace, or air conditioner;
• paying the property taxes on the property;
• utility bills and other property expenses listed in your or your spouse’s name; and
• 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 (289) 907-1081.