What Happens to the House in a Divorce in Ontario?
- Bram Sandow
- Apr 11
- 11 min read
Updated: Apr 14
I’m Bram Sandow, a Certified Divorce Specialist (CDS) and Advanced Negotiator with extensive experience helping individuals and couples navigate the often complex world of real estate during separation and divorce.
Based in Toronto, Ontario, I specialize in guiding clients through the emotional and legal intricacies of selling or dividing a matrimonial home. Many have asked me - "What happens to the house in a Divorce?".
This guide is designed to help you understand your rights and options and make informed decisions at every stage. Whether you're early in the separation process or already working with a family lawyer, this resource is here to provide clarity, confidence, and support.
So, you're thinking about divorce in Ontario and wondering what'll happen to your house?
Don't worry, you're not alone. Splitting up assets is one of the trickiest parts of ending a marriage, especially when it comes to your biggest investment. Whether you've lived there for decades or just bought your dream home, figuring out who gets the house in Ontario (or its value) can be complicated. But don't stress - I've got you covered with the ins and outs of how Ontario handles property division during divorce. Grab a coffee and let's walk through what you need to know about keeping, selling, or dividing up your home when your marriage ends.
Dividing Property When a Marriage Ends
When your marriage comes to an end in Ontario, one of the most pressing concerns is often what happens to your shared property - especially your home. According to Ontario law, property acquired during a marriage must generally be split equally between spouses. This includes the family home, even if only one spouse's name is on the title.
The Matrimonial Home
What happens to the house in a divorce in Ontario? The Family Law Act gives both spouses equal rights to live in the matrimonial home, regardless of whose name is on the ownership papers. Divorce doesn't automatically force a sale, but if you can't agree on what to do with the house, the court may order its sale and equal division of proceeds.
Equalization of Net Family Property
When dividing assets, Ontario uses an "equalization" approach. This means calculating the net worth of each spouse on the date of separation and the date of marriage. The spouse with the higher net family property then pays half the difference to the other spouse. What happens to real estate in a divorce in Ontario follows this principle, with the home's value factored into these calculations.
Remember, property division can be complex. It's always wise to seek legal advice to understand your rights and options fully.
What is Considered a Matrimonial Home in Ontario?
When it comes to answering the question "What happens to the house in a divorce in Ontario?", it's crucial to understand what qualifies as a matrimonial home. In Ontario, a matrimonial home is defined as any property in which a person has an interest and that is or was at the time of separation the ordinary place of residence for the person and their spouse.
Multiple Matrimonial Homes
Interestingly, you can have more than one matrimonial home. For instance, if you and your spouse regularly used a cottage or secondary residence as a family, it could also qualify as a matrimonial home.
Special Legal Treatment
Matrimonial homes have unique legal considerations in Ontario. For example, one spouse cannot get a mortgage on the matrimonial home without the other spouse's consent. Additionally, a court can grant one spouse exclusive possession of the home, regardless of who owns it.
Equal Division
When considering what happens to real estate in a divorce in Ontario, it's important to note that the full value of the family home must be shared equally between spouses, even if one spouse owned it before marriage or received it as a gift or inheritance. This unique treatment can have significant financial implications during property division in a divorce.
Division of the Matrimonial Home in the Event of a Divorce
When contemplating divorce in Ontario, you might wonder, "What happens to the house in a divorce in Ontario?" The answer isn't always straightforward, but understanding the basics can help you navigate this challenging process.
Equal Rights to Possession
In Ontario, both spouses have equal rights to possess the matrimonial home, regardless of who owns it. This means the home cannot be automatically sold in a divorce. If you're wondering what happens to real estate in a divorce in Ontario, it's important to note that neither spouse can sell or mortgage the property without the other's consent.
Valuation and Division
When dividing the matrimonial home's value, each spouse is typically entitled to an equal share. If you can't agree on the value, you may need a neutral third-party appraisal. One spouse might buy out the other's share, or you may need to sell the home and split the proceeds.
Considering Children's Interests
Ontario courts prioritize the best interests of any children involved when making decisions about the matrimonial home. Factors like living arrangements, stability, and financial resources are all taken into account. In some cases, the court may award temporary exclusive possession to the spouse caring for the children.
Remember, what happens to the house in a divorce in Ontario can significantly impact your future. It's always wise to seek legal advice to ensure a fair outcome in your unique situation.
How is the Value of a House Determined in a Divorce in Ontario?
When it comes to what happens to real estate in a divorce in Ontario, determining the value of the family home is a crucial step. This process can significantly impact the division of assets and ultimately affect what happens to the house in a divorce in Ontario.
Professional Appraisals
Sometimes, professional appraisals are obtained to determine the fair market value of the home. These experts (Appraisers) consider factors like size, condition, location, and recent sales of comparable properties in the area.
Valuation Date
The valuation date is critical in Ontario divorces. It's typically the date of separation, when there's no reasonable prospect of resuming cohabitation. This date sets the benchmark for calculating the home's value in the divorce settlement.
Alternative Methods
In most cases in the GTA, you will use other tools to assess your home's value:
Comparative Market Analysis (CMA) from a real estate agent *Most Common
Opinion of Value, a more detailed analysis
Certified Home Appraisal, which is legally accepted and thorough
Remember, the chosen method should align with your specific situation and the complexities of your divorce case.
Curious what your home might be worth in today’s market? Request a divorce-focused CMA here
What Happens to the House in a Divorce?
My Final Thoughts
When it comes to what happens to real estate in a divorce in Ontario, there's no one-size-fits-all answer. However, understanding your rights and options can help you navigate this challenging process.
Equal Division is the Norm
In Ontario, property acquired during a marriage must typically be split equally when the marriage ends. This includes the family home, even if only one spouse's name is on the title. However, there are exceptions, such as inherited property or assets protected by a prenuptial agreement.
Consider the Children
If you have kids, their well-being is paramount. Ontario courts consider the best interests of children when making decisions about the division of the matrimonial home. This might mean allowing one parent to stay in the home temporarily or permanently.
Explore Your Options
Remember, you don't have to let the courts decide. Couples can choose to divide their property through agreements, mediation, or arbitration. This can often lead to more satisfactory outcomes for both parties.
Whatever path you choose, seeking legal advice is crucial. What happens to the house in a divorce in Ontario can significantly impact your financial future, so make sure you're well-informed every step of the way.
What Happens to the House in a Divorce in Ontario? FAQs
Matrimonial Home Rights
When it comes to what happens to real estate in a divorce in Ontario, the matrimonial home holds a special status. According to Ontario's Family Law Act, both spouses have equal rights to the matrimonial home, regardless of who owns it. This means you both have the right to live there during separation, unless a court orders otherwise.
How to Choose a Real Estate Agent for a Divorce Sale
Choosing the right real estate agent is one of the most important decisions you'll make when selling a home during divorce. The right professional can protect your interests, reduce conflict, and help you move forward with clarity and confidence.
Why Choose Bram Sandow founder of Divorce Real Estate Made Simple:
Certified Divorce Specialist (CDS): Bram has specialized training in navigating the emotional and legal complexities of divorce-related home sales.
Advanced Negotiator: With a proven ability to negotiate fairly and strategically, Bram ensures both parties feel heard—and that the financial outcome reflects the best possible result.
Neutral, Confidential Approach: Bram works with both parties impartially, offering clear communication protocols that help minimize stress and misunderstanding.
What to Look For (and What Bram Delivers):
Experience with divorce sales and a deep understanding of Ontario family law considerations
Strong marketing plans that get results—even in high-stress situations
Transparent commission structure and communication policies
Working with someone who understands the stakes, the emotions, and the process makes all the difference. If you're navigating divorce and unsure where to begin, Bram Sandow is here to help you take the first confident step forward.
Let’s take the pressure off. If you’re navigating a divorce and unsure where to begin, schedule a free consultation today.
Options for the House
You have several choices when deciding what happens to the house in a divorce in Ontario:
One spouse buys out the other's share
Sell the house and split the proceeds
Continue co-owning the property (less common)
Keep in mind that if you can't agree, the court may order the sale of the home.
Property Division Rules
In Ontario, the general rule is that the value of property acquired during the marriage is split equally. However, the matrimonial home is treated uniquely. Its entire value is included in the property division, even if one spouse owned it before marriage.
Remember, these are complex matters. It's always best to consult with a lawyer to understand your specific rights and options.
Can One Spouse Sell the Home Without the Other?
No, in Ontario, one spouse cannot sell the matrimonial home without the other's consent or a court order. Even if only one spouse's name is on the title, the other spouse has an equal right to possession of the home.
If one spouse wants to sell the home but the other refuses, they would need to apply to the court for an order permitting the sale. The court will consider factors such as:
The best interests of any children involved
Each spouse's financial situation
Whether there are other suitable housing options available
If the court allows the sale, it will also determine how the proceeds should be divided between the spouses. This helps protect both parties' interests in the matrimonial home during the divorce process.
It's important to note that attempting to sell the home without your spouse's consent or a court order could be considered a breach of their legal rights. Consulting with a lawyer is highly recommended to understand your options and obligations regarding the matrimonial home in your specific situation.
How is the Value of the Home Determined?
To divide the value of the matrimonial home, you first need to determine its worth. This is typically done through a professional appraisal or real estate evaluation.
The value of the home is calculated as of the date of separation, not the date you purchased it or the current market value. Any increase or decrease in value after the separation date is usually not included in the division.
What if the Home Has a Mortgage?
If there is a mortgage on the matrimonial home, the outstanding balance will be deducted from the home's value when dividing the property. The remaining equity will then be split between the spouses according to Ontario's property division laws.
It's essential to consider mortgage payments and other housing costs when deciding whether to keep or sell the home. These financial obligations can significantly impact your future budget and lifestyle.
Who Pays the Mortgage After Separation?
After separating, the mortgage payments on the matrimonial home still need to be made until the property is sold or one spouse buys out the other's share. Typically, the spouse who remains living in the home is responsible for covering the mortgage payments and other housing costs during this period.
If you cannot agree on who will pay the mortgage, the court may make an order assigning responsibility based on factors like:
Each spouse's income and ability to pay
Which parent has primary custody of any children
Whether one spouse has already been covering the mortgage payments
It's advisable to consult a lawyer to understand your rights and obligations regarding the mortgage after separation. Failing to make payments could result in damage to both spouses' credit scores and potential foreclosure on the home. When in doubt maintain status quo until you are able to obtain professional legal advise.
In some cases, the court may order that the mortgage payments be made from joint funds or by both spouses contributing a portion until the home is sold or one spouse buys out the other. Open communication and trying to reach an agreement can help avoid costly legal battles over mortgage responsibilities.
Do We Have to Sell Our Home During a Divorce?
No, you are not legally required to sell your home during a divorce in Ontario. There are a few options available:
One spouse can buy out the other's share of the home. This allows one partner to keep the property while the other receives their share of the equity.
You can continue to co-own the home, at least temporarily. This arrangement requires a high level of cooperation and communication between ex-spouses. It may work if one partner plans to move out eventually or if you intend to sell the home in the future when the housing market is more favorable.
The home can be sold, and the proceeds divided according to Ontario's property division laws. This is often the simplest solution, especially if you cannot agree on maintaining joint ownership or a buyout.
The decision to keep or sell the matrimonial home will depend on your unique circumstances, such as your financial situation, ability to afford the mortgage and upkeep, and whether children are involved. It's crucial to consider the emotional impact of staying in the home as well. Ultimately, you and your ex-spouse must decide what is best for your family's well-being and future.
If you cannot agree on what to do with the home, the court may need to intervene and make a decision based on factors like the children's best interests, each spouse's financial means, and any agreement or court order regarding possession of the home. Seeking legal advice can help you understand your rights and the potential consequences of each option.
Seek Professional Guidance
Navigating the division of the matrimonial home during a divorce can be complex and emotionally challenging. It's crucial to seek guidance from experienced family law professionals who can help you understand your rights, obligations, and options. With the right support, you can make informed decisions that protect your interests and those of your children.
Conclusion
So there you have it—the lowdown on what can happen to your house during a divorce in Ontario. Remember, every situation is unique, and there's no one-size-fits-all solution. Whether you decide to sell, buy out your ex, or keep living together (awkward!), make sure you're fully informed about your rights and options.
Don't be afraid to seek professional help from a lawyer or mediator to guide you through this tricky process. At the end of the day, the goal is to reach a fair agreement that works for both of you. Stay calm, communicate openly, and who knows? You might just come out of this with your sanity (and maybe even your house) intact.
Selling during a divorce is tough, but you don’t have to do it alone. Let’s make this process easier. Schedule a free, judgment-free conversation.
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