Here’s What Happens to the House After a Divorce in Canada

May 4, 2021

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There’s so much to consider during your divorce, and one of the most significant aspects is, Who Gets What? 

For couples that are not mutually separating paths, the property division can get messy. 

Under Canada’s Constitution, every territory & province has its own set of rules & regulations regarding the division of the property. 

Overview on Property Division- Divorce in Canada

In the eyes of the law, marriage is a mutual partnership, no matter who is earning the income or running the household. Therefore the division of property is done between the two equally. 

The general rule is that any property you acquired during your marriage and that you still have when you separate must be divided equally. Any increase in the property’s value during the marriage has to be shared. 

Now, coming to your marital home. 

A marital home is a place where you and your partner reside at the time of divorce. If you owned a matrimonial home on the day of marriage, you don’t receive any credit at the separation. It is also imperative to know that it doesn’t matter who is on the papers; both spouses have equal rights regarding the marital home. 

The above is simply a general overview; the laws vary significantly from one province to another. For more information, you must visit the provincial government’s official website or contact a family attorney. 

In General, There Are Four Key Strategies to Dealing With a House During a Divorce:-

  • If you mutually agree to sell your house on the open market and then divide it up.
  • One spouse buys out the home by paying off the other partner. 
  • Maintain mutual ownership between the two partners and turn it into a rental property.
  • Or even divide the house into two units, both the spouses have their equal space. 
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In case both the parties have agreed to sell off the house, typically, both are responsible for any costs & expenses during the selling process, such as the realtor’s fees. Each one is responsible for upgrades and renovations before putting the property on the market. 

One important note here is that during the separation & divorce process, the matrimonial house cannot be sold by one partner without the other spouse’s proper knowledge & permission. Also, no one can rent the property; if this happens, the other party can move to court. 

In the end, it is highly recommended that you seek the advice of your lawyer to help you out with the division of the property.