What to Do to Keep Your House Following a Separation?

What to Do to Keep Your House Following a Separation?

Has love left the nest? Then what is to be done with the family home? This is a hard issue to tackle as every situation is unique.

 

Depending on your circumstances, many options are available to you so that you can continue to enjoy living in your residence. Here are a few points to consider. 

1.   Don’t Rely on Your Loved Ones’ Advice

There are many matters that must be dealt with when couple splits up. The family home is one, but there are also child custody arrangements to be agreed upon, who gets the car, and how to divvy up possessions. Even in cases of amicable separation, some aspects are complex to resolve. Relying on professionals to untangle things for you can save you a whole lot of headaches! Indeed, family and friends can give you the emotional support you need but are not often qualified to offer the best legal or financial advice.

For the thornier issues, it may be appropriate to consult a lawyer, a real estate broker, a notary and sometimes a mediator:

  • The lawyer will defend the rights of both parties involved.
  • The broker can determine the residence’s market value (essential information to know before you put your house up for sale or you buy back your ex-partner’s share).
  • The notary will check your marital status and the title deed.
  • The mediator may be necessary if discussions become acrimonious.

 

2.   Don’t Overlook the Financial Considerations

Can you afford to keep your house? If you want to purchase your ex-partner’s share, be aware that this amount is not simply equivalent to half of the remaining mortgage. For example, if the family home is worth $600,000 and there is $200,000 left to pay off the mortgage, your property’s net value is $400,000. In this scenario, your ex has a right to half of this value, that is $200,000, which will be added to the existing mortgage. Consequently, you will be solely responsible for a $400,000 mortgage.

It may be advisable to consult a financial advisor who can confirm that you are able to take on such a mortgage. If this is not the case, they can suggest other means of achieving your goals.

 

3.   Think About Why You Want to Stay in Your Home

An important question you must ask yourself is why exactly you what to stay in this specific residence. Is to provide your children with stability? Is it to continue living in the neighbourhood (near the school, close to your work, a few minutes away from your family, etc.)? Your answers will help you get a clearer picture of the situation and ensure you make a rational—not emotional—decision. In fact, it may be that in the end letting go of the house is the best outcome for your situation and that the collateral damage will not be as severe as first believed. 

For example, by selling the larger shared property, both ex-partners could receive a significant amount of money that they can then each use to buy a more modest home better adapted to their needs.

4.   As They Say: An Ounce of Prevention is Worth a Pound of Cure

In the case of a separation involving real estate, the parties will ideally have signed a cohabitation agreement, or a marriage contract, beforehand stipulating how the family home and any other belongings are to be disposed of if the relationship should end. By setting down on paper how assets are to be fairly and equally distributed in such an event while you’re both still in love, unfortunate situations can be avoided later.

During a divorce, property is equally divided between the spouses. However, to be considered the house’s legal owner if you are in a common-law relationship, make sure that your name appears on the title deed. Your signature can be added years after the residence has been purchased, even if it was wholly acquired by your spouse.

We hope this information has been enlightening during this difficult period. Don’t hesitate to use the resources available to you, such as a real estate professional to help you assess your home’s price or to help you find a new nest corresponding to your changed circumstances.

RE/MAX Québec

By RE/MAX Québec

By RE/MAX Québec

A leader in the real estate industry since 1982, the RE/MAX network brings together the most efficient brokers.