Should We Sell the Matrimonial Home?
Often clients assume that the home has to be sold. This may be the best choice but there are other options too.
Consider the following:
· One of you could purchase the other’s interest in the home. You may have to increase the mortgage or find some other source of financing.
· One of you could reside in the home and then, after some time has passed, you could sell it or one of you could purchase it from the other. This may allow the market or your own finances to improve.
· Consider the whole financial picture. It may be that you can keep the home because the equity in the home equals the value of your spouse’s pension, RRSP or cottage. You keep the home and your spouse keeps his or her pension, RRSP or cottage.
· Before selling your home, consider where you will go and the costs. It may be that the home is less costly than renting a home or purchasing another home.
· Even if you can afford to stay in the matrimonial home, you may wish to have a fresh start in your own new home so you can create new memories.
· Remember when you sell your home, you usually have to pay 3% to 5% commission to the real estate agent and another $1,000.00 in legal fees.
· Many of the homes listed for sale are as a result of a separation or divorce.
· After paying support, the home may be too costly for the payor and the recipient of support may not be able to afford it either. This is normal. Remember, you are establishing two homes with the same income you had to finance one home. Usually both clients’ lifestyles have to contract to accommodate the change from one home to two homes. As a result, both clients usually have to downsize. This is the reality of divorce.
· If the home is jointly owned and increases or decreases in value after the separation, that increase or decrease is jointly shared with your spouse.