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In many—if not most—divorces, the family home is the couple’s largest asset. It can also be a very emotional item. Very likely, you and your spouse decided in happier times that it was where you wanted to spend your lives together, and it may be where your children have lived most of their lives. This can make it difficult to let go and to assign a value to it. Because the house is so valuable and so important, it can be the biggest part of negotiations for a property settlement. Deciding what you’re going to do with the house often helps put other property issues into perspective, both financially and emotionally.

Before we even look at your options, let’s review what the Ontario Family Law Act stipulates so that we understand what your rights really are. The following information from Ontario.ca is an extremely useful place to begin your understanding of how the law works in Ontario when it comes to dividing property when a marriage or common law relationship ends in Ontario. 

In Ontario, property division upon breakdown of relationship is set out in the Family Law Act. The Ontario Family Law Act divides property in two categories: Family Property and Excluded Property. Property acquired during a marriage must be split equally when a marriage ends for any reason. This can include your: home, car, business, furniture, pension, money.

For property that you owned before the marriage, any increase in value is usually divided equally.

You must share the full value of the family home, even if: one of you owned the home before you got married, you received it as a gift, you inherited it. This is called the ‘matrimonial home’.

Money owed to either spouse is called an equalization payment, or an equalization of net family property.

Common law couples are not legally required to split property acquired when they lived together. We will look more at common-law relationships a little later on in this guide.

There are time limits.
If you need to go to court for a decision on the amount of an equalization payment, you have six years from the day you separated, or two years from the day your divorce is final (whichever comes first) to do so.

Other ways to divide your property.
If you both agree, you and your spouse can divide your property any way you want in a separation agreement. You should each have your own lawyer look over your separation agreement before you sign it. You cannot easily change your separation agreement later.

Exceptions.
There are some exceptions that allow one spouse to keep property they own. This is called excluded property. Examples of excluded property include:

• property (other than the family home) that you inherited or were gifted from someone other than your spouse during your marriage.

• money you received from an insurance company because someone died.

• money you received or have a right to as a result of a personal injury, like a car accident.

• property that you and your spouse have agreed to exclude through an agreement.

As mentioned above, if the family home was gifted or received as an inheritance, it does not count as excluded property. It must be divided equally unless you and your spouse agree to a different split.

If the family home is on a large piece of property that is also used for other purposes, only the house and the small area around it are considered the family home. For example, if your family home is on a dairy farm, the whole farm would generally not be considered the family home.

The court can only divide property differently in very special situations and if a 50-50 (equal) split would be extremely unfair to one of you. Talk to a lawyer for more advice.

Marriage contracts or cohabitation agreements.
A marriage contract is a legal document signed by couples before they get married to protect their rights if they split up in the future, including rights related to property. Couples in a common law relationship can sign a similar document, called a cohabitation agreement.

These contracts/agreements can set out terms if the relationship ends, such as: how much spousal or child support you will pay, how you will divide your property and who will move out of the home. It can’t say who will have decision-making responsibility or parenting time with respect to your children.

Both of you must sign a marriage contract or cohabitation agreement in front of a witness for it to be legal. The witness must also sign the contract/agreement. Once you have signed it, you must follow what it says. You can negotiate changes to the contract/agreement if they are made in writing and signed in front of a witness.

If you have separated and do not agree with the terms of the contract/agreement, you will have to go to court and ask a judge to make a decision if you and your spouse cannot agree about changing the terms.

You and your partner should speak to different lawyers and exchange financial information before signing a marriage contract or cohabitation agreement.

What you might be owed.
Adding up the value of your property and dividing it between you and your spouse can be complicated.

This section includes a general overview from the Ontario Government on how to calculate what you or your spouse might owe each other. It’s a good idea to consult a lawyer about how the rules apply in your case.

You must be fair and honest when you do this. If you go to court, you must prepare a full financial report of all your property, debts and income. You must swear that it is accurate.

Follow the steps on the following page to calculate what you might owe or be owed by your spouse.

Step 1: Add up the value of property you owned as of the day you separated and deduct the value of your debts and excluded property as of that date. Property can be located anywhere and include: homes, businesses, cars, furniture, jewelry, savings in the bank including retirement savings, tax free savings accounts and registered education savings plans, an Ontario pension (ask the pension administrator for information about the value of a pension), anything else that is in your name or belongs to you.

If you own some property together in both names, you should each put half the value of the property on your list. Examples of excluded property include: property (other than the family home) that you inherited or were gifted from someone other than your spouse during your marriage, money you received from an insurance company because someone died, money you received, or have a right to get, as a result of a personal injury like a car accident, property that you and your spouse have agreed to exclude through an agreement.

Example of debts include: money owed on credit cards, the amount left to pay on your house (mortgage), car loans.

Step 2: Subtract the value of property you owned, minus the value of your debts, as of the date of marriage. First, add up the value of all the property you owned on the day you got married. Do not include your family home, even if you owned it on the date of your marriage. When your marriage ends, the full value of the family home must be shared even if one of you owned the home before you were married, received it as a gift or inherited it.

Next, subtract all the debts you had as of the date of your marriage, except for debts that were owed for the family home (for example, a mortgage).

Step 3: Calculate the difference. Subtract the number you get in Step 2 from the result you got in Step 1. Now you know your share of the value of net family property. If your share is a negative amount, it is considered to be zero.

Step 4: Find out if money is owed to either spouse. Compare the value of your share of the family property to the value of your spouse’s share. Subtract the smaller amount from the larger amount and divide the difference by two. This is the amount that the spouse with the larger share must pay to the spouse with the smaller share. This is called the equalization payment.

Common law couples.
Common law couples are not legally required to split property acquired when they lived together.

Furniture, household items and other property belong to the person who bought them. Common law couples do not have the right to split an increase in value of the property they brought with them to the relationship.

If you contributed to property your spouse owns, you may have a right to part of it. Unless your spouse agrees to pay you back, you may have to go to court to get back your contribution.

Although there is no requirement to divide property on separation, common law spouses may choose to enter into a domestic contract such as a cohabitation agreement or separation agreement that sets out their respective rights to property.

Get legal advice.
Getting separated or divorced can be an emotional and complicated process. A lawyer can help you understand your rights around dividing property.

The Law Society Referral Service can provide you with the name of a lawyer who practices family law and will provide a free initial consultation of up to 30 minutes. If you are unable to use the online service because you are in a crisis, you may call 416-947-5255 1-855-947-5255. The Law Society of Ontario also maintains a list of lawyers in Ontario.

If you can’t hire a lawyer for your whole case, you may choose to hire a lawyer who is willing to give “unbundled legal services” or “limited scope services.” This means that the lawyer provides you with initial advice or helps you with specific steps in your case.

If you choose to go to court, you can represent yourself. It’s important to understand that judges and court staff cannot give you legal advice. Only lawyers can give you legal advice. People who represent themselves are responsible for informing themselves about the law and the court’s procedures. You will be held to the same standard as people who have lawyers representing them.

The division of property can be daunting and confusing - having a good support team is essential. Krista Lachapelle is a specialist in the Real Estate needs of people going through a separation or divorce. Reach out today to learn more. She has skills to help you reduce conflict and to save money in the long run  and to ensure that you can make the big decisions effectively with as much awareness, open communication and educational support where needed, as possible.

Contact Krista Lachapelle today (905) 251-9699.

Your child is likely to adjust better to living arrangement after separation or divorce if he feels like he’s had some input. So it’s a good idea to reassure your child that you’ll consider the living arrangements that he wants. You can even involve him in the discussions if you think he’s old enough.

Your child might worry that she has to make a choice that means pleasing one of you and hurting the other. It’s OK to reassure her and let her know that it’s not up to her to make the major decisions. It’s important for your child to know that living arrangements aren’t about who loves your child the most. Rather you need to base them on practical issues like who is at home most, lives closest to school or can get to after-school activities. Here are some tips to help you set up living arrangements that work well for your child, and support your child as he adjusts.

Organization
Let your child know who’ll take her to school, where she’ll sleep and how often she’ll see each of you. Keep basic clothing and personal items like underwear, toiletries, pyjamas and runners in each home. This way your child doesn’t have to remember to move everything between the two homes. If your child has a special blanket or toy, make sure your child takes it when going back and forth. This will help your child feel more secure.

To make things easier at packing time, help your child pack his bag or write a list of what he needs to take and stick it on the wall. Older children might need help planning what school books and homework to take.

A shared online calendar or app can be a great way to stay organised and communicate with your former partner about what’s coming up.

Two homes, two routines
Children can cope well with different routines in different houses, as long as the rules are clear and you keep things as predictable as possible. You might need to say something like, ‘When you’re here, we’ll do it this way’. Eventually your child will get used to the differences.

A ‘place for me’
Children need a place they can call their own and a space to store their things in both homes. Think outside the box a little. Find a way to give your child some ‘me space’, even if she doesn’t have her own bedroom. This space could be a cupboard for her toys, a beanbag, or a wall where she can put up her favourite pictures.

Listening
If your child is confused or anxious about moving between two homes, listen to what’s bothering him. You might need to talk to your former partner about the arrangements if they need changing to suit your child’s needs. If talking to your former partner isn’t possible, a counsellor or other professional might be able to help.

Flexibility
A consistent and predictable routine helps children feel secure, confident and happy. But as your child gets older, she’ll have extra school, social, sport and even part-time work commitments. This might make it harder for her to move from one house to another. You might need to adjust your arrangements to your child’s changing needs.

When going through a separation or divorce, the very best way to reduce conflict and to save money in the long run is to ensure that you can make the big decisions effectively with as much awareness, open communication and educational support where needed, as possible. I will help you to set realistic expectations by combining the very best data and my expertise. I am committed to being non-judgemental, supportive and transparent. I will never take sides, and truly want what is best for BOTH of you. 

Because you have spent years, if not decades together, your lives are very intertwined, and this whole process needs to be handled with compassion, nurturing and understanding. I too have been where you are – and so I understand it
on a visceral level. I can also help to reduce conflict and overwhelm during this strenuous time because I have a vast amount of education in psychology for supporting couples during difficult transitions. 

Please let me know how I can be of help to you. I know how stressful this all can be - and there are no questions too small. We can get you through this - together.

Contact Krista Lachapelle today (905) 251-9699.

Your daily living expenses will likely increase when you live separately. Maintaining a home on your own is more expensive than sharing the costs. For many people, this means having less money to spend. A budget can help you make the most of the money you have.

Here are some tips to keep in mind:

1.     Make sure you keep paying your bills throughout your settlement period. While your emotions might be raw while working through a divorce, refusing to pay joint bills is literally cutting off your nose to spite your face. Recent slow or missed payments will make it either prohibitively expensive or downright impossible to qualify for mortgage financing in the foreseeable future. The best advice is to make sure that all of the bills are paid (you can seek reimbursement for the expenses your spouse should have covered during the settlement phase, so keep your receipts!)

2.     Separate your joint accounts as soon as possible and check your credit report to ensure that you did not miss anything. Regardless of what you and your ex-spouse have agreed about who is responsible for paying what bill, a missed payment on a joint account will hurt both your credit ratings equally. Also, if all or most of your credit has been in your spouse’s name, set up your own accounts as quickly as possible because it is much easier to get approved for a mortgage with an established credit history.

3.     Since no lender will provide you with a mortgage until all of your future financial obligations can be clearly understood, complete your separation/ divorce agreement as a matter of priority. Also, because your soon-to-be ex-spouse can make a claim against any of your assets, lenders will not risk such a claim on your new home while divorce proceedings are still underway.

More specifically, if you are looking to buy out your former husband/wife’s share of the matrimonial home, the first step is to agree on the property’s current market value. This can be done by working with a realtor who is mutually accepted as a trusted resource.

4.     If your spouse is buying out your equity in the matrimonial home, get confirmation from the lender in writing that you are no longer registered on the mortgage, and keep in mind that simply being taken off the property’s title is not the same thing. Until you have this proof in hand, you could still be on the hook for the outstanding mortgage balance for a house you no longer own.When going through a separation or divorce, the very best way to reduce conflict and to save money in the long run is to ensure that you can make the big decisions effectively with as much awareness, open communication and educational support where needed, as possible. I will help you to set realistic expectations by combining the very best data and my expertise. I am committed to being non-judgemental, supportive and transparent. I will never take sides, and truly want what is best for BOTH of you. 

Because you have spent years, if not decades together, your lives are very intertwined, and this whole process needs to be handled with compassion, nurturing and understanding. I too have been where you are – and so I understand it
on a visceral level. I can also help to reduce conflict and overwhelm during this strenuous time because I have a vast amount of education in psychology for supporting couples during difficult transitions. 

Please let me know how I can be of help to you. I know how stressful this all can be - and there are no questions too small. We can get you through this - together.

Contact Krista Lachapelle today (905) 251-9699.

In many—if not most—divorces, the family home is the couple’s largest asset. It can also be a very emotional item. Very likely, you and your spouse decided in happier times that it was where you wanted to spend your lives together, and it may be where your children have lived most of their lives. This can make it difficult to let go and to assign a value to it. Because the house is so valuable and so important, it can be the biggest part of negotiations in settlement. Deciding what you’re going to do with the house often helps put other property issues into perspective, both financially and emotionally.

By now you should have a good understanding of the law in Ontario, and if not, you should read this blog post: Dividing property when a marriage or common law relationship ends in Ontario.

One of the many questions you may ask yourself is where you’re going to live. Of course, the option is always there to remain in your home. For many divorced parents whose children are still in school, this is the option that makes the most sense.

The goal in these cases is to keep life as steady as possible for them during this time of change, and keeping them in their same school, near their friends and support network, and in the home they know and are attached to might be in their best interest. However, this isn’t always possible, and every divorce is different. Let’s walk through a few of your housing options after you’ve gone through a divorce.

Selling your home.
Some people decide that selling their home is in both ex-spouse’s best interest. Mutually leaving your home and selling it jointly can help both of you get a start on this new season of your life, and you may be able to use the profits you split to leverage a new mortgage.

Options for staying in the family home:

Buying out your spouse 
Although there are times when an ex- spouse willingly moves out of your home so that you (and any kids you two may have together) can continue living there, things don’t always go this smoothly. Sometimes, you have the option of buying your spouse out of the mortgage and taking full ownership of the home.

A word of caution here – many people who are going through a divorce have an emotional attachment to the home they shared with their ex-spouse. It may be that it’s the house that their children grew up in, or that they have poured a lot of time and energy into making it “home.” However, many people who could comfortably afford their marital home while they were married can’t afford to continue to keep it, pay the mortgage, pay insurance and taxes, and still have enough funds left over to live a fulfilling lifestyle. Make sure you evaluate the financial side of the equation before you commit to buying out your spouse and keeping your marital home by yourself.

If you don’t qualify for the mortgage on your own, an option is to ask another person to act as a joint borrower or guarantor. This person should have a good credit history and income. Before co-signing, make sure you both fully understand the responsibilities involved.

Once you’ve qualified for the mortgage, you need to have your former partner removed from the home’s title and released from the mortgage. You’ll have to pay fees to do this. If you don’t release your former partner from the mortgage, he or she could continue to be responsible for the mortgage payments. If you fail to make your mortgage payments, your former partner would be required to pay.

Buying a new home 
Of course, you also have the option of buying a new home after your divorce. This may be a given if you and your ex have mutually decided to sell the home you shared, but it can be a challenge to purchase a home on your own. This is especially true if your credit is less than perfect, or if your spouse made significantly more than you did and contributed to your family finances accordingly before your divorce. Typically, it’s wise to take some time after your divorce to take stock of where you stand financially.

Sitting down with a financial planner can help you organize your finances and move forward accordingly. You may have to adjust your expectations of home ownership or downsize to a home that you can comfortably afford on your own. This doesn’t have to be a negative thing, though. Instead, view your home shopping as an adventure – you’re finding a new space that’s perfect for you and your family. 

Renting is a possibility too.
In many cases, it makes sense to take some time before jumping into a new home purchase after a divorce. You want to make sure that the moves you’re making are emotionally healthy for both you and your kids, if children are part of your equation. Taking an extra year or more before buying a home can give you time to build your credit, let the dust from your divorce settle, take stock of your finances, and get a better understanding of your monthly cash flow needs and savings. 

While you wait to buy, there are many rental options that could be a good fit for you. If you want to save a notable amount for a down payment or want to chip away at debt you’ve carried out of your divorce, downsizing to an apartment or townhome (if it meets your lifestyle needs) might make sense to save money each month. Going from home ownership to renting isn’t always easy, but if it helps you to achieve your long-term financial goals, it could be well worth it.

Weigh all of your options. 
Don’t feel pressured to purchase a home immediately after (or while you’re still going through) your divorce. Only you will know when you’re emotionally ready to move forward and buy a home of your own, even if you’re already financially ready. And don’t think that just because you’re experiencing this time of change you need to jump into the first house that seems like an okay fit. You deserve to find the perfect home that meets your lifestyle needs.

Making the decisions of what to do with the family home during divorce can be extremely emotional and challenging. But know you are not alone, I am a specialist in working with couples going through separation and divorce. 

The very best way to reduce conflict and to save money in the long run is to ensure that you can make the big decisions effectively with as much awareness, open communication and educational support where needed, as possible. I will help you to set realistic expectations by combining the very best data and my expertise. I am committed to being non-judgemental, supportive and transparent. I will never take sides, and truly want what is best for BOTH of you. 

Because you have spent years, if not decades together, your lives are very intertwined, and this whole process needs to be handled with compassion, nurturing and understanding. I too have been where you are – and so I understand it
on a visceral level. I can also help to reduce conflict and overwhelm during this strenuous time because I have a vast amount of education in psychology for supporting couples during difficult transitions. 

Please let me know how I can be of help to you. I know how stressful this all can be - and there are no questions too small. We can get you through this - together.

Contact Krista Lachapelle today (905) 251-9699.