Divorce Is Hard…

Going through a Divorce is tough as it is, but having to sort out your house can be a daunting process. In the midst of this emotional time, what you need is non-emotional, specific, straight-forward answers. Your situation is more complex than the average home sale as there are several decisions you will need to make. Once you know how divorce affects your home, mortgage and taxes, making those decisions become a little bit easier.


In order to make an informed decision, we encourage you to ask yourself:

  • Consider all of your options: Is Refinance possible?
  • Can you carry the expense of the home on your own or would it be wiser to sell and purchase something more affordable?
  • Are you comfortable staying in a familiar place or would you rather start fresh elsewhere?
  • If you choose to purchase a new home, what can you find in your price range?

Now, when it comes to your home there are four options:

  1. Sell your home and share the proceeds
  2. Buy your spouse out and own the home
  3. Sell your half of the home to your spouse
  4. Keep joint ownership temporarily

It is important for you to really take some time to think about each of these options and understand how they will affect you and your family, before deciding which option to go with.


If you’re both looking for a fresh start, this option may be the choice for you. If you decide to sell your matrimonial home, it is important that both you and your spouse are fully aware of what the net proceeds will be. This is the amount that will be left in your pocket after necessary expenses and the division of funds between both parties.

The proceeds from the sale may not necessarily be a 50/50 split; instead the split depends on what the settlement and property laws are in your area. With this option, maximizing your home’s selling price is important so that both parties may be left with an amount to comfortably start over whether it be purchasing a new home, or renting.


Before considering this option, it is important to understand the financial responsibility that comes with owning a home on a single salary. If staying in the comfort and familiarity of your home is affordable for you, you’ll need to Refinance the property based on your income alone. This may be difficult to achieve even if affordability isn’t an issue for you. Be sure to research the feasibility of this option and speak with a mortgage agent for advice before committing.


If you’re looking to move on and start fresh, letting your spouse buy you out may be what you’re looking for; however, it comes with its share of financial implications. If your home cannot be Refinanced on your spouses income alone, the lender will consider both you and your spouse responsible for the loan. This may make it difficult for you to get a loan for your new home even though you are no longer an owner of the communal home.


Keeping joint ownership is a choice that some coupes make, but can be very complicated. You will have to decide whether one party will continue to reside in the home or if you will both leave and choose to rent it out. This is almost always a temporary situation, and comes with its share of concerns. As it may not have immediate financial implications, this will affect you when it comes to paying the tax man. This option is also one of the most difficult, as it requires continued communication between both parties and essentially delays the decision to proceed with options 1 through 3. We would only recommend this option if it is an amicable divorce and there are extenuating financial circumstances, such as huge penalties for refinancing your mortgage.


Feel free to contact us to discuss this in more details, you can fill out the form below, email us at yourhomeconnection@remaxchay.com or call or text us Nicole 705-795-5722, Greg 705-796-2586, we are hear to help, give advise and make this process as easy and stress free as possible.


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