If you’re currently going through the motions of a divorce or separation, you’re likely facing a ton of big decisions – like what to do with your home.
Deciding who gets to stay in the matrimonial home is easier said than done. In reality, your home is so much more than a piece of property. It’s where you’ve built countless memories and watched your family grow.
Coming to an agreement with your spouse on who keeps the home after the divorce is an emotional journey. Yes, there are a number of financial and logistical factors at play, but it’s important to recognize that your or your former partner’s feelings will play a large role in this decision.
Divorce impacts real estate more than you may think. Check out these posts from my blog for a closer look at a few more divorce-related topics.
- Everything You Need to Know About Disclosures & Divorce
- Real Estate Vows to Make Before You Get Married
- How to Find an Agent to Sell During Your Divorce
Children & Custody
Divorce is an extremely difficult process for parents, but it’s also hard on the kids too. When it comes to deciding which spouse gets to keep the home, your children should absolutely remain top of mind. Generally speaking, the common verdict is that whichever spouse has primary custody of the kids will be the one who stays in the home.
This is for a number of reasons. First, staying put limits the disruption to their day-to-day lives, allowing them to be close to friends and school. Second, kids can often feel incredibly attached to a home, especially if it’s the only place they’ve ever lived. By allowing your kids to stay in their childhood home, you can maintain an important pillar of stability for them during a tough time of change.
Other Emotional Considerations
Even if you and your former partner don’t have children, deciding who keeps the home can still entail emotional choices. After all, divorce is an emotional, life-changing experience. For a lot of people, the prospect of staying in the matrimonial home after the marriage has ended can be unappealing or outright distressing. If either you or your spouse is in this boat, it could be the determining factor in who keeps the home.
Financial Factors
Finances play a big role in the grand scheme of homeownership. Following a divorce, the spouse who keeps the home will be responsible for paying the mortgage, property taxes, insurance, and maintenance costs. Depending on the income and financial standing of each partner, along with arrangements for child or spousal support, one of you may be better equipped to take on the costs of the home than the other.
In addition to divorce, some other major life transitions may require navigating the world of real estate. Explore these helpful resources on my blog.
- Power of Attorney vs Executorship – What’s the Difference?
- How to Sell Your Parents’ Home
- Probate in Ontario
How Buyouts Work
Once you’ve decided who will keep the home, it’s time to get started on the buyout process. Keep in mind that even though you’re not listing your home on the public market, this will involve a formal real estate purchase with important legal and financial logistics.
Buyouts are a unique type of home purchase. After equity has been accounted for, and you and your former partner have come to an agreement on the home’s current market value, the buyout steps can officially begin. In most cases, the buyer (i.e. the spouse who is staying in the home) simply takes on the dollar amount of the home owing to their spouse by adding it to their existing mortgage.
Don’t forget – before jumping into the buyout process, you and your former partner will need to have a formal separation agreement in place.
Looking for a deeper dive into partner buyouts following divorce or separation? Click here to read my expanded blog post on the topic.
Getting a Helping Hand
Going through a divorce while trying to figure out a real estate transaction can absolutely be stressful. One way to make the process a little easier is to work with a compassionate and patient real estate agent who has direct experience with partner buyouts.
As an unbiased third party, your agent can help you and your former partner find a deal that works for both of you. After that, they’ll guide you through the process and paperwork to get things settled and finalized. With a dedicated professional taking on the heavy lifting on the real estate side of things, you’ll have more time (and energy) to focus on whatever you need.
I’m a real estate agent in South Etobicoke who specializes in supporting clients through tough times. If you need to navigate a real estate transaction during a divorce, I can help. Call or text me at 647-239-7587 or send me an email at melissa@southetobicoke.com to get started.
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