Although divorce is never easy, there’s always help available – especially on the real estate side of things.
As a real estate agent, I’ve helped countless families navigate this complex and often extra-stressful type of home sale. I’m uniquely familiar with the kinds of challenges and specific considerations that may arise when selling a home with, to, or from your ex-spouse.
In this blog, I’ll pass on some of my best tips for deciding what to do with the family home after a divorce.
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Who Gets to Sell The Home?
If you’re reading this blog, there’s a good chance that you’re in the process of planning to sell the home you once shared with your former spouse.
When a couple decides to separate or divorce in Ontario, the family home (known as the “matrimonial home”) has a unique status under the Ontario Family Law Act. Regardless of whose name is on the title or if either person owned the home individually first, both spouses have equal, 50/50 rights to the home. With that in mind, neither you nor your ex-spouse may attempt to sell, lease, or mortgage the property without a formal agreement in place first.
As a note – property rights work differently for common-law couples. If you are separating from a long-term partner that you shared a home with but weren’t married, you may not be entitled to the same split of the home. If you’re in this position, it’s a good idea to consult your lawyer.
To that end, whether you’re already working with a lawyer or not, it’s a good idea to speak with a legal professional about any selling plans you may have in advance. Even if both parties are in agreement about how you’d like to proceed, waiting to get the green light from your lawyer can add an extra layer of protection.
Need more advice on selling a home? Read these blogs next!
- How to Find the Best Real Estate Agent to Sell Your Home
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- 5 Tips For Selling Your Oakville Home
What Are Your Options?
Every (former) couple is different. So depending on your (and your ex-spouse’s) current needs and preferences, you may need to work together to determine which option is best for you. That said, most homeowners typically know which route they’ll take before approaching a sale.
In simple terms, there are two primary options when selling your home with an ex-spouse. Either you sell the home together and split the proceeds or one person buys out the other’s share in the home. Each of these paths comes with its own complexities and special considerations so you’ll need to think long and hard about which option is right for you.
Option 1 – Selling as a Team
Let’s look at a joint sale first. This one’s pretty straightforward. Together, you and your ex-spouse will list the home (with the help of a professional agent of course) and once it’s sold you can split the proceeds and go your separate ways. This option can provide both parties with a fresh start and a clear financial separation. As it offers a simple and relatively clean break, selling together is usually the go-to for divorcing couples who don’t have children.
Option 2 – One Person Stays Put
If you’re not interested in a joint sale, the other option is for one person to buy out the other’s share in the home. Also called a partner or spousal buyout, this is the path you and your former partner will need to take if one person wishes to continue living in the property. With that in mind, buyouts are usually the path taken by parents in the process of separation or divorce.
Of the two options, this one’s a little more complicated because there are several key factors that both parties must agree on. For instance, you’ll need to decide who will stay in the home, if one spouse can handle the financial weight of owning the home on a single income (factoring in spousal and child support), and, in order to figure out how much is owed, what the current market value of the home would be.
On the hunt for more family-focused real estate advice? You’ll want to read these blogs next!
- What Are The Top Oakville Neighbourhoods For Kids?
- Is Oakville a Good Place to Live?
- Moving Up – Should You Buy Your Next Home Before You Sell?
Step One in all Divorce Sales
Once you’ve decided which approach you’d like to take with your former spouse, there’s one more major item to complete before you can actually begin the sale process: signing a separation agreement.
Without a legally binding separation agreement in place, you won’t be able to get the ball rolling on any of the formal elements of your sale. To do this, you’ll once again need to work with your lawyer.
Selling your home following a divorce? I’m here to provide compassionate expert support. To get in touch call 905-346-8188 or email me at stacey@staceyrobinson.com.
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