The housing market can affect how the marital home is handled
Who gets to keep the house? That is a question that is asked often in divorce cases in Canada. The answer isn’t one that is always simple. Typically, the couple’s assets are divided during the divorce. Even if only one spouse’s name is on the deed, both spouses usually get half of the equalization of the family’s net property. The current state of the housing market is making it more difficult for couples to come to an agreement about who gets to keep the house.
The issue at hand is how the market is affecting the home’s value from the date of the separation until the date the property division determination is made. If the house increases in value during that time, the non-owner spouse isn’t going to see part of that increase.
In August of this year, the average price of homes in this country rose by 1.5 per cent. That might not seem like a huge increase, but if the home’s price is high, it could be a considerable difference.
The housing market affects not only the cases in which the home is being sold, but it also affects that cases in which one spouse is buying out the other spouse. This is often the case if the couple has children, and the children will be raised in the home.
Ultimately, the property division settlement in your divorce can come down to how you negotiate. If you are using mediation to come up with the agreement about how property is divided, you need to make sure you fully understand how the marital home is being handled.