Selling Assets

January 27th, 2009 by Questions

I am going through a very bad divorce. I have some equity in my home, but now where near enough to pay my ex and all my debts. Is it legal to I sell my home before I go bankrupt to my boyfriend?

Posted from: Ontario


One Response to “Selling Assets”

, A licensed trustee said:

It is legal to sell your home to your boyfriend, BUT ONLY IF he pays the fair market price for it. In other words, you cannot sell it to him for a $1, or even for what is left on your mortgage (unless that is the homes fair value).

If you sell it for less than its fair value ad you then file for bankruptcy your trustee will try to collect the fair value first from the person you sold the home to, and then from you. If your trustee cannot recover the money they may go to Court and have the original sale cancelled (so that your trustee can then sell the house for its fair value to some one else).

You may be treading on VERY thing ice – be careful or you may make things very complicated (and therefore difficult for you).

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)