There’s no denying that going through a divorce can be an emotionally painful experience. Add to that the legal, financial, and practical challenges, and life can start to feel a little overwhelming. Fortunately, by paying attention to the logistics, you can take much of the stress out of your divorce—and one of the details you’ll want to focus on is the sale of your home.
Here’s what you should know about selling your home during a divorce…
Understand the concept of the matrimonial home
The home a married couple shares comes with special protections, and they have implications once divorce is on the table. This living space is known as “the matrimonial home” in provincial family law, and it could have serious implications for your next step.
The matrimonial home is defined as any property that you and your spouse “ordinarily occupied” as your family residence at the time of your separation. It can be a house, townhome, cottage, ski chalet, or other type of residence.
If you’re hoping to sell your matrimonial home, your spouse will need to agree. The same is true if you’re planning to mortgage it. In addition, you both have the right to occupy the property, at least until a separation agreement or court order says otherwise—or one of you releases your rights to the home.
To be really clear, it doesn’t matter who bought the matrimonial home or whose name is on all the paperwork. You and your partner have the same rights with regard to the property, which brings us to our next point.
Interested in learning what selling a home is like right now? Read some of our valuable seller resources to find out more.
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Make sure you’re in sync
When it comes to having the smoothest divorce possible, cooperation is key. Deciding what to do with the matrimonial home can be one source of conflict, which is why it’s important to discuss your needs, preferences, and future honestly. Of course, you’ll want to keep many factors in mind during these conversations, like the best interests of your children (if you have any) and your respective financial positions.
Sometimes, one partner wants to stay in their matrimonial home while the other wants to sell. In a worst-case scenario, the person who wants to sell may be able to get an order for the sale of the home to force the other’s hand. Needless to say, getting the courts involved can be stressful for all involved, and it’s best avoided whenever possible.
If you want to stay in your current home, you can also buy your spouse out in one lump sum. Refinancing the mortgage is one way to get the money together to do this. You’ll then need to requalify for your mortgage (finding a joint borrower or guarantor can help if need be).
And if you both want to sell? Perfect! Your best bet is finding a real estate agent who’s helped divorcing couples sell in the past. They’ll have the experience to obtain the best possible price without favoring one party over the other. By remaining impartial, they can help prevent conflicts from building.
Are you and your spouse trying to decide whether to put your home on the market? Learn why selling your home right now could be one of the best decisions you ever make here.
Considerations when you’re moving
When you’re selling the matrimonial home, one of your biggest concerns is sure to be where you’ll live next. To start with, should you buy or lease? And if you’re purchasing, should you opt for a house, townhome, duplex, or condo?
First off, make sure you truly understand the costs associated with whichever option you’re seriously considering. For example, if you’re thinking of moving from a house to a condo, you’ll very likely be embracing a more affordable option. But the new costs you’ll incur can add up quickly. For example, condo fees vary a lot, but owners can expect to pay hundreds of dollars each month. On the other hand, if you’re used to living in a house, you know that the ongoing maintenance costs can be steep too.
Our point is, careful budgeting is crucial. It will be your income alone covering expenses now, and (depending on your previous circumstances) that could take some getting used to.
Of course, there’s more involved in this decision than your budget. As you embark on a new chapter in life, what matters most to you? Do you see this as an opportunity to explore a new lifestyle, or is it about maintaining the one you have now? You’ll likely want to factor in things like proximity to your chosen amenities, as well as how close you’ll be to work and family.
Moving forward…
If you’re in the midst of a divorce, you’re probably thinking through your next step. When it comes to the property you shared with your spouse, there are a few things to keep in mind.
Make sure you understand your rights as they relate to your matrimonial home (when in doubt, speak to an experienced attorney). Do everything you can to cooperate with the spouse you’re divorcing, and (if you’ll be moving) consider your budget and preferred lifestyle. Last but not least, if you and your partner decide to sell, work with a real estate professional who has helped others in similar situations.
There’s no way around it: divorce can be a very difficult experience. The good news is, being prepared can make the process less stressful—and help you move forward.
One small piece of advice that you also might want to consider: When anything monumental with change happens in your life, like divorce, we suggest the first year after might be a good time to lease. It gives you enough time to reflect on what the next plan might be and not commit you to something you’ll later regret.
Wondering what it’s like to sell with our team? Discover our selling process here!
