What happens to the family home is one of the most pressing questions for separating couples in Toronto. This is also true throughout Ontario. This question is important for many. It’s often the largest shared asset. It holds emotional value. These factors make it a critical part of any separation or divorce settlement. Let’s break down the key issues. We need to decide who gets to stay in the home. We must decide who is responsible for paying for it. Finally, we have to consider whether it needs to be sold.

Who Stays in the Home?

Under Ontario family law, both spouses have an equal right to live in the matrimonial home. This is true despite whose name is on the title. This right continues until a court order, separation agreement, or sale of the property determines otherwise.

In deciding who stays in the home temporarily, courts consider factors like:

• Safety concerns: Allegations of domestic violence can lead the court to issue an exclusive possession order. This order grants one spouse the right to stay in the home.
• Best interests of the children and other practical considerations: Courts are cautious when granting exclusive possession. They do this for the stability of children. Instead, they need compelling reasons. These include ongoing conflict.
• Financial and practical feasibility: The financial situation and housing needs of each spouse also influence who stays.

An exclusive possession order does not change ownership rights. It gives one spouse the right to live in the home temporarily.

Who Pays for the Home?

The responsibility for mortgage payments, property taxes, and maintenance can be a contentious issue during separation.

1. Joint Responsibility: If both parties are on the mortgage, they are typically jointly responsible for payments. This responsibility continues until the property is sold or refinanced.
2. Temporary Arrangements: One spouse agrees to cover housing expenses in the short term. Or, they are ordered to do so. This is if they are granted exclusive possession.
3. Spousal or Child Support Adjustments: Sometimes, housing costs are factored into spousal or child support payments for fairness.

It’s important for separating spouses to document any agreements. They should clarify who will pay for the home and related expenses. This helps avoid future disputes.

Does the House Need to Be Sold?

Whether the home needs to be sold depends on several factors:

1. Financial Feasibility: Can one spouse afford to buy out the other’s share and take over the mortgage? If not, selling is the only choice.
2. Equalization Payment: The value of the home is often included in the division of property. Selling the home is necessary to give an equalization payment to the other spouse.
3. Mutual Agreement: Some couples agree to sell the home and divide the proceeds as part of their settlement.
4. Best Interests of the Children: Courts are reluctant to order exclusive possession only for the children’s stability. Yet, they recognize other factors. Agreements that focus on reducing disruption for children still influence decisions.

Key Considerations for Keeping or Selling the Home

If you’re considering keeping the family home, here are a few questions to ask:

• Can I afford the mortgage, taxes, and upkeep on my own?
• What is the current market value of the property?
• Is refinancing available?
• How will keeping the home affect my equalization payment or other property division matters?

If selling seems inevitable, it’s important to work together to maximize the sale price. You should also agree on how to handle proceeds and selling costs.

Legal Guidance is Essential

Navigating the complexities of what happens to the family home during separation requires careful consideration and sound legal advice. I am a Toronto-based family law lawyer with extensive experience in property division. I can help you understand your rights and options. I negotiate fair agreements. I make sure that your financial interests are protected.

If you have questions or need help with your family law matter, contact my office to schedule a consultation. Together, we can find a solution that meets your needs and sets you up for a stable future.