Dividing assets in a divorce can be complicated, and the family home is often one of the most significant considerations. It’s more than just a property—it’s a place of memories, security, and, in many cases, a major financial asset. Deciding who stays in the home and how its value is divided requires careful legal and financial planning. Here’s what you need to know about handling the family home during a divorce in Ontario.
In Ontario, the matrimonial home is treated differently than other assets. Regardless of whose name is on the title, both spouses have an equal right to stay in the home until a separation agreement or court order decides otherwise. This is meant to protect both parties and prevent one spouse from being unfairly forced out.
However, in high-conflict situations or cases involving domestic violence, the court may grant exclusive possession to one spouse, meaning the other must leave, even if they are a legal owner. Exclusive possession is granted based on factors such as the best interests of any children involved, financial circumstances, and whether alternative housing is available.
Once divorce proceedings begin, couples must decide what to do with the home. There are typically three main options:
If one spouse wants to keep the home, they may buy out the other’s share of its value. This often requires refinancing the mortgage to compensate the other spouse fairly. Financial stability and mortgage approval are key considerations before choosing this option.
For many divorcing couples, selling the home is the most practical choice. The proceeds are divided according to Ontario’s equalization of net family property laws, ensuring both spouses receive a fair share based on total marital assets and debts.
Some couples choose to delay the sale, allowing one spouse and the children to remain in the home temporarily. This can be beneficial when stability for the children is a priority, but it requires clear agreements about expenses and responsibilities.
The financial responsibilities tied to the home don’t disappear during a divorce. Mortgage payments, property taxes, insurance, and maintenance costs must still be covered. If both spouses remain in the home, they may continue splitting these expenses. If one spouse moves out, an agreement must outline who is responsible for payments.
In cases where one spouse earns significantly less, spousal support or occupation rent may come into play. Occupation rent is a court-ordered payment from the spouse living in the home to the one who moved out, compensating for the exclusive use of the shared property.
Since the family home is often the most valuable asset, ensuring a fair division is critical. Before making decisions, it’s essential to:
If you need legal guidance on dividing the family home in a divorce, I can help ensure your rights and interests are protected. Contact me at (416) 782-7999 or email me at marcy@marcysegallaw.com.