Who Gets the House in a Divorce in Canada?

Divorce is an emotionally charged process that can quickly become stressful. To make things even harder, you’ve also got to navigate through a number of key decisions – like who will keep the home.

Deciding who keeps the family house after a divorce is an important decision, but it can also be contentious. For some couples, it’s an easy choice. For others, not so much. As a full-service real estate team that has helped countless families in this exact situation, we’re here to help.

In this blog, we’ll cover some of the basics of selling your home after a divorce – including key considerations for deciding which spouse should keep the home.

Division of Assets in Divorce: What To Do With The House

One of the hardest parts of navigating a separation or divorce is the division of assets, and as the largest of these assets, deciding what to do with the house can be particularly tricky.

After a divorce, there are two common pathways couples choose to take regarding the family home. Either the home is sold and both parties divide the proceeds equally. Or, one spouse stays put and buys out the other’s share in the property.

When it comes to the latter of these two options, deciding who actually gets to keep the house can be an intricate process.

Searching for more divorce-related real estate resources? Explore these related blogs next.

• How Long Will It Take to Buy Out Your Spouse After a Divorce?
• Selling After a Divorce: Do You Need One Agent or Two?

Matrimonial Home Rights in Ontario

In Ontario, there are several laws and regulations in place about how assets are divided in a divorce – including the house. With that in mind, if you’re going through a divorce, the first (and most important) thing you need to know is this: Each spouse has equal rights to the home.

Under Ontario’s Family Law Act, married couples share the primary residence (also known as the ‘Matrimonial Home’) evenly. In the event of a divorce, both spouses have equal claim to the house itself and any equity gained as a result of value appreciation.

What Happens to Property Owned Before Marriage in Ontario?

In most cases, the matrimonial home was purchased by the couple when they were together. However, this isn’t always the case. Occasionally, one spouse buys and owns a property independently before getting married and welcoming the other one into their home. So what happens in these circumstances?

From a legal perspective, matrimonial home rights still apply whether or not one person owned the property before getting married. However, there can be certain exceptions to this – such as instances where there is a pre-nuptial agreement in place, although a judge can overrule certain aspects of a prenup if they feel it is unfair.

Moving to a new home following a divorce or separation? Explore these blogs for advice on buying a home.

• Do You Need to Include Conditions in Your Buying Offer?
• How to Budget for Buying a Home in Vaughan
• 5 Reasons You Should Get a Mortgage Pre-Approval Before Heading to the Market

Can’t Decide Who Should Stay?

In an ideal world, you and your spouse will already be on the same page in terms of who will keep the house, and who will move out. Unfortunately, that doesn’t always happen.

Because divorce can be an emotional process, it’s easy to accidentally overlook important considerations that should otherwise factor into your decision-making. Next, we’ll look at two major details to consider if you’re in this situation.

Who Will Have Custody?

Divorce can be tough on the whole family, including kids. So, it’s important to keep them in mind when making your decision. So, who gets the house in a divorce with children?

If it’s decided that one parent will have primary or majority custody, it’s usually a good idea for them to keep the home. This will offer your children a stable environment while navigating a significant change in their lives.

Who Can Afford the Home?

Another big factor in deciding who keeps the house is money. Regardless of what’s decided, the spouse who stays in the home needs to be able to afford it.

Even without a downpayment and other typical buying costs, owning a home as a single person can be costly. Managing a mortgage with added-on equity, plus other costs like insurance and property taxes, is easier said than done – especially on a single income.

Of course, child support or other financial aid agreements can alleviate some of these costs for the parent who remains in the home, however, it’s important to verify that the spouse who stays has the financial means to do so.

Searching for a real estate team to guide your divorce home sale? We can help. Email our team at info@arciteam.com or call 416-571-2724.