Dear Friends and Colleagues,
Welcome to my Newsletter, the Winter issue. I hope you are enjoying the snow and “refreshing” temperatures!
Today’s topic is: What happens to a spouse’s interest in the home when he/she transfers it to his/her spouse’s name and then they separate? This is an important issue which often arises when spouses separate.
Korman v. Korman, a recent Ontario Court of Appeal decision, provides us with some answers. In this case, the husband transferred his interest in the home to the wife to protect it from possible creditors. Subsequently, the parties separated. The wife claimed that, as the home was in her name alone, the significant post-separation increase in the value of the home all belonged to her.
The Court found that, even though the husband had got some reward in doing this (i.e. protection from creditors), still, he maintained his interest in the home in the form of a resulting trust. As such, the parties shared the post-separation increase in the value of the home on a 50/50 basis. To read the Court decision, click here.
Until next time!