Divorce can be incredibly difficult, and the logistical issues that it entails certainly don’t help. If you’re separating from your spouse, one of the most significant challenges you’ll face is figuring out what to do with the home you shared. Selling may be the only option that makes sense, but divorcing couples who put a home on the market together should be aware that they may face some unique obstacles.
Fortunately, it’s entirely possible to sell a house or condo successfully during the dissolution of a marriage. As you start the process, understanding the law and your rights is the key to achieving the best possible outcome. If you’re getting divorced while preparing to put your home on the market, here are five things you should know…
1) You can use the same agent
During your divorce, you’ll almost certainly need a lawyer to represent your best interests. The same won’t necessarily be true when it comes to hiring a real estate agent. Whenever possible, cooperation between divorcing spouses can lead to a smoother selling process—which can result in a quicker and less-stressful sale.
Hiring one agent instead of two can help you cut down on potential disagreements and misunderstandings—and ensure that you present a united front when you’re dealing with buyers. If working together isn’t an option, using two agents from the same brokerage may be helpful.
2) You both have an equal right to live in your home
During a divorce, both spouses have a right to remain in the property they lived in together. It all comes down to an important family-law concept: the matrimonial home. Put simply, it doesn’t matter whether you shared a suburban house, a downtown condo, or a cottage in the woods. If you regularly occupied it together up until your separation, it counts as your matrimonial home.
Both you and the spouse you’re divorcing have special protections related to your matrimonial home, and one of them is the right to possess it. That said, there are exceptions. In certain circumstances—such as those where abuse is present—a court may grant exclusive possession to one spouse.
3) You can’t sell or mortgage your home (without consent)
Part of moving on with your life is working with your former partner to decide what to do with your home, and following through with your plan. Of course, preparing a property for sale takes time. If you and the spouse you’re divorcing have ongoing conflicts with one another, the process is bound to be frustrating—but that doesn’t mean you can take matters into your own hands.
Even if you purchased your home before getting married and the property is in your name, you can’t sell or mortgage it without your spouse’s permission. Needless to say, you’ll have to reach an agreement at some point. If your former partner doesn’t cooperate, the courts can rule that the house must go on the market.
4) Your home is split differently than your other assets
One of the most common misconceptions about divorce in Ontario has to do with the division of assets. Contrary to popular belief, they aren’t split equally between both parties. If you accumulated more wealth over the course of your marriage than your partner did, you will split half of the difference with them. The property you had when you got married remains yours when you separate—with the exception of your matrimonial home.
Unlike your other assets, the home you shared will be split fifty-fifty when you get divorced. It doesn’t matter which one of you bought it, or when.
5) It pays to use an agent with the right experience
During a divorce, it’s wise to be discreet about your reason for selling your home. If buyers know what’s motivating you, they may use this information to get a leg up during negotiations. A knowledgeable sellers’ agent will be aware of this fact—and many others that are crucial to selling in circumstances like yours.
When you’re searching for the right agent, look for someone who has experience helping sellers who are going through a divorce. At the very least, the professional you work with should understand family law as it applies to real estate—and be willing to discuss their approach to managing conflict during a transaction with you.
Preparing to sell your home during a divorce? Reach out today to learn how I can help you simplify the process—and achieve the best outcome possible.