my spouces property

December 7th, 2005 by Questions

I personaly owe revenue canada from the years 1998 and 1999. I filed for bankruptcy in Sept.2005
my wife and I live in a home that she bought in 1992 six years priour to my tax debt to REVENUE CANADA. The home my wife owns is soley in her name and has always been in her name.
My name has never been on the title at any time.
Is there any risk that she may loose her home as a result of my debt?
Some friends tell me that because we are married Iam intitled to 50% of the home there for she will be forced to sell the home and my 50% will go to the creditor.
Please help us in any info you may have for us and maybe others faceing simular nightmares


One Response to “my spouces property”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

I believe what you are referring to is typically referred to as dower rights. While it would be important to get a legal opinion on this, my understanding of dower rights is that regardless of whose name is on title, if both parties reside in the household then you are indeed entitled to 50% of the value of the home if the house was sold. As such, if you have outstanding liabilities they in turn could conceivable have access to 50% of the equity in the property less the amount of the principle residence deduction under your provinces legislation. Whether or not this will be impacted by the filing of a bankruptcy or proposal is not a simple is difficult to say. As this is a difficult issue I would suggest you contact a trustee in your local area (click on “Find A Trustee” on the left) as well as consult with a solicitor, preferably one who is familiar with both matrimonial and insolvency legislation.

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