The Adam Mills Team
‘Where Ottawa Is Home’

Royal LePage Canada Top 1% Chairman’s Club (Based on Gross Sales for 2021)

Divorce and Real Estate…

  • Divorce is rarely easy and often means a lot of difficult decisions. One of the most important decisions is what to do about the house. In the midst of the heavy emotional and financial turmoil, what you need most is some non-emotional, straight forward, specific information and answers. Once you know how a divorce affects the home, mortgage and taxes, critical decisions are easier. A neutral, third party, like a Realtor, can help you make logical, rather than, emotional decisions.

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Here are some thoughts to encourage you to ask the right questions and by asking the right questions you will be able to make informed decisions that will ultimately be in your best interest.

Ask Yourself…

  • Are you more comfortable remaining in a familiar place?
  • Do you want a fresh start?
  • Is the current home too much financially for one party to bear?
  • If you choose to buy another home, what can you find within your price range?

You have 3 Basic Options:

  1. Sell the matrimonial home and divvy up the proceeds
  2. One party buys the other party out, and owns the current home fully
  3. Keep joint ownership

Before deciding which option you prefer, take some time to fully understand the implications of each of the three options.

  1. Sell the Home and Divvy up the Proceeds

    If you choose this option, it is best to maximize the home’s selling price to provide each of you with as large a fund for a new home as possible. Many home owners make the mistake of failing to understand how much money each will walk away from the sale with. Be certain that you are fully aware of what your net proceeds will be. Remember that the proceeds may not be divided in half; the division depends on the result of your divorce settlement.

  1. Buy out Your Spouse

    If you decide on this housing option, remember that the financial responsibility for this home will be yours alone. Even if you think you can manage the financial weight, if your two incomes combined were used to secure a loan, you may have trouble refinancing the property with only your income. Be sure to investigate the feasibility of this option before committing to it.

  2. Keeping Joint Ownership

    Some couples in the midst of a divorce may retain joint ownership of a property, even though only one person still resides within the home. Even though this situation may be temporary, it is important to be aware of the issues that will be of concern in the future (e.g. tax implications).