February 16, 2023 – Holdbacks From Sale Proceeds

“It is well established law that presumptively the parties are entitled to receive their equal shares of the sale proceeds. But this distribution is subject to each party’s Divorce Act and Family Law Act claims, none of which had been resolved or adjudicated at the time of the motion, four years on from separation. Therefore, in the absence of agreement about how the proceeds should be distributed, the court is tasked with ensuring both parties’ trial positions are not prejudiced.

In these types of cases, it is incumbent upon each party to make submissions regarding whether any hold back is needed to protect their respective unresolved claims and, if so, for how much and from whose one-half share. The hold back amount need not be precise; it is without prejudice to any final adjudication on the merits of all claims. But the court does require evidence to arrive at a fair amount to be preserved pending trial.”

         White v. White, 2022 ONSC 1111 (CanLII) at 15-16