When a couple decides to separate or divorce, one of the largest financial assets that they have to deal with is often their matrimonial home.
A matrimonial home is defined under Ontario law as every property in which a person has an interest and that is or, if the spouses have separated, was at the time of separation ordinarily occupied by the person and his or her spouse as their family residence.
Essential Points To Consider:
- who gets to keep the home?
- What is the market value of the home? This will help determine how much of a payment the spouse who gets to keep the home will have to pay to the transferring spouse. A good real estate agent can help during this process.
- Are land transfer taxes payable on a transfer of a matrimonial home, between spouses or former spouses? The answer to this question is, “maybe.” If there is a payment being made for the transfer of the home, then taxes could be payable unless there is an exemption. One such exemption is if the transfer is in compliance with a written agreement of separation, pursuant to which the parties have agreed to live separate and apart.
- How are any mortgages or secured lines or credit being dealt with? For the transferring spouse, it is important for him or her to address how he or she is being relieved of liability under any existing mortgage or secured line of credit after the transfer takes place. Typically, this involves either a mortgage refinance transaction or obtaining a written release from the lender.
With some careful planning and by asking the right questions, the process of transferring a matrimonial home can go smoothly and be one less source of stress in what can otherwise be a very stressful time.
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Courtesy of RyanRoberts.ca Guest Blogger: Patrick Shing’s law practice encompasses both residential and commercial real estate transactions, including purchases, sales, mortgage refinancing, and estate transfers. As part of the team at the law firm Mills & Mills LLP, Patrick’s focus is on building lasting professional relationships and being a trusted legal advisor to his clients. He can be reached by email at patrick.shing@millsandmills.ca or by telephone 416-682-7054
