Should We Sell the Matrimonial Home?
When going through a divorce, many people assume that selling the family home is the only option. While it may be the right choice for some, there are other options worth exploring before making a decision.
Key Considerations About the Matrimonial Home
1
One Spouse Can Buy Out the Other
One option is for one spouse to purchase the other's share of the home. This may require refinancing the mortgage or finding additional financing.
2
Delay the Sale
Sometimes, it makes sense for one spouse to stay in the home for a period of time before selling. This allows time for the real estate market to improve or for financial circumstances to stabilize.
3
Balance the Financial Picture
If one spouse keeps the home, the other spouse might receive other assets such as a pension, RRSPs, or a cottage, to equalize the division of property.
4
Compare Costs Before Selling
Before deciding to sell, consider the cost of buying another property or renting. In some cases, staying in the home may be more affordable than moving.
5
A Fresh Start May Be Best
Even if you can afford to stay in the home, you may prefer a fresh start in a new place where you can build new memories.
6
Account for Selling Costs
Selling a home usually involves paying 3% to 5% commission to the real estate agent, plus about $1,000 in legal fees. These costs should be factored into your decision.
7
Financial Reality After Divorce
Post-divorce, two households must be maintained with the same income that previously supported one. This often means both parties must adjust to a smaller lifestyle and may need to downsize.
8
Shared Risk of Market Changes
If the home is jointly owned, any increase or decrease in the home’s value after separation is usually shared equally.
9
Wait to Buy a New Home
Do not purchase a new home until you have a signed separation agreement in place. Without it, financial obligations may still be uncertain.
10
Court Orders and Alternatives
If you and your spouse cannot agree on what to do with the home, a judge in Family Court will likely order it sold. To avoid court, consider using the Collaborative Process. It allows you and your spouse to work together to reach a fair and creative solution about the home.