I wrote a blog posting a while back about ex-wives, and what happens to division of property.
There is a ‘family’ law case that came out last year on joint-tenancy, intention, and right of survivor – Hansen Estate v Hansen, 2012 ONCA 112
In that case, a man and his wife were getting divorced, and he had drawn up a new will, with all of his assets going to his kids from a previous marriage, but before he could sever the joint tenancy, he died! So the JT was still effective, therefore giving full title to his ex-wife (from separation). His kids claimed that the father intended to sever, and create a tenancy in common, and gave evidence to that effect. The Court of Appeal agreed.
This case is interesting from an insolvency and partition standpoint. If a person goes bankrupt, and they are a joint tenant, then there is a different process to when there is a tenancy in common, and it’s simply their portion of the house. Same thing if a lawsuit is against a person, and they lose, the writ would different – and the procedure.
Of course if you die, then the intention needs to be interpreted.
Very interesting…but this reminds you that if you are separating, divorced, worried that the person you co-own your property with is going to go bankrupt or file a proposal, or is involved in a lawsuit, sever the interest.
Come talk to me if you want to discuss real estate issues!