Going through a separation or divorce can be an incredibly trying time for families. We understand how difficult it can be to make decisions about selling your home during a separation or divorce, which is why we are here to provide guidance and support every step of the way.

Ontario legality around real estate and marriage

We want you to feel empowered and informed about your rights regarding the matrimonial home. Under Ontario law, the matrimonial home is defined as any residence owned and “ordinarily occupied” by you, your spouse, and your family on the day of separation. This can include any type of housing, such as condos and mobile homes. Interesting to note that there can sometimes be more than one matrimonial home, even a frequently used family cottage can qualify under the legislative definition.

Once you are legally married, typically both you and your spouse are equally entitled to possession of the home, regardless of who is on the title. Typically, the matrimonial home requires spousal consent when sold, and the full value of the home is again typically shared between both spouses, however, there may be exceptions and so it’s best to seek legal advice on these matters.

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What options do couples have during separation or divorce?

When considering selling your home during a separation or divorce, there are typically two options on the table. One spouse can buy out the other’s share in the home and remain there, or the property can be sold, and the equity divided. However, before making any decisions, there are several important factors to consider:

  1. Where will each spouse, and any children, live if the home is sold?
  2. What would the cost of maintaining the expenses of the home be for an individual spouse?
  3. What steps need to be taken to get the home ready for sale? Are there any major or minor repairs needed on the home?
  4. What will the associated costs of selling the home be? This could include lawyer’s fees, repairs, real estate commissions, or mortgage penalties.
  5. How will selling the home affect the involved children (if any)?
  6. How will the proceeds of the sale of the home be divided?
  7. Are there debts, joint or otherwise, that need to be cleared from the proceeds of the sale, prior to distribution, like loans or rental contracts?
  8. Do expenses paid by one spouse after the date of separation need to be deducted from the other spouse’s share of the home sale proceeds?

Common law couples selling a home after separation

As real estate professionals, we understand that common-law couples may have concerns about their property rights. Unlike married couples, common-law spouses do not have the same automatic rights to the matrimonial home. Each partner’s interest in the home will depend on their contribution to the property’s acquisition, maintenance, and improvements.

If one common-law spouse legally owns the home on title, they can sell it without the other spouse’s permission. For this reason, it’s important for Common Law couples to clearly outline how the shared home should be handled should separation occur to avoid additional stress or trauma.

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Seek professional guidance before selling your home

During this emotional and challenging time, it’s essential to seek the guidance of both a professional real estate lawyer and a real estate salesperson for advice on what to expect. Communication during this process is key, so make sure, no matter who you choose to work with, that they are clear on how you would like communication involving you and your former partner to be handled.

There are likely to be times when you will both need to be involved during the decision making process, so it is always beneficial to outline how those situations should be approached, right from the start.

We know that every situation is unique, and that’s why we take a personalized approach to each client’s needs. We are here to help you weigh the options, consider the factors, and make the best decision for you and your family. We understand the emotional toll that this process can take, and we want to make it as stress-free as possible.

If you’re considering selling your home during a separation or divorce, we are here to support you every step of the way and invite you to reach out to us here at the Lisa Hartsink Team for guidance during this challenging time.

Get in touch today by calling 905-873-9944, emailing info@lisahartsink.com, or fill out the form on this page!