A Guide to Selling Your Home Off-Market During a Divorce: Tips & Strategies for Canadian Homeowners

Divorce can be a difficult and emotional process, and deciding what to do with the family home often adds to the stress. Selling your home off-market during a divorce can provide a smoother, quicker, and more private transaction. In this guide, we will outline the steps and considerations for selling your home off-market during a divorce in Canada, with a focus on Ontario.

Consult with a Family Lawyer

Before making any decisions regarding your home, it's essential to consult with a family lawyer who specializes in divorce cases. They can help you understand your rights, responsibilities, and the legal implications of selling your home during a divorce. In Ontario, the Family Law Act governs the division of property, and a family lawyer can provide guidance on the process. There are a few legal considerations that need to be taken into account if you live in Ontario.

• Division of property: In Ontario, the Family Law Act governs the division of property during a divorce. This law applies a concept called "equalization of net family property," which means that the value of any property acquired by either spouse during the marriage (except for certain exclusions) must be divided equally between the spouses upon divorce. This includes the matrimonial home, which is often the largest asset a couple owns.

• The matrimonial home: The matrimonial home is the property where the couple lived together as spouses at the time of separation. It's important to note that both spouses have an equal right to possession of the matrimonial home, regardless of whose name is on the title. This means that one spouse cannot unilaterally decide to sell the home without the other spouse's consent, even if they are the sole owner.

• Listing the home for sale: To sell the matrimonial home during a divorce, both spouses must agree to list the property for sale and sign the listing agreement. If one spouse refuses to cooperate, the other spouse may need to obtain a court order to force the sale.

• Buyout options: One spouse may decide to buy out the other spouse's share of the matrimonial home. In this case, it's essential to obtain an accurate valuation of the property to determine the buyout amount. A professional appraiser or real estate agent can assist with this process.

Agree on the Terms with Your Spouse

Selling a home off-market requires both spouses to agree on the terms of the sale, including the asking price and division of proceeds. It's crucial to have open and honest communication with your spouse to prevent any misunderstandings or disputes during the sale process. According to a study by TD Bank, approximately 70% of divorced Canadians report that their homes were their largest shared asset during the marriage [1]. If necessary, a mediator or your family lawyers can help facilitate the conversation and ensure both parties reach a mutual agreement.

Consider Working with a Wholesaler

Wholesalers specialize in off-market real estate transactions and can provide a fair cash offer, a quick closing timeline, and a hassle-free process. Partnering with a wholesaler can help you navigate the complexities of selling your home during a divorce and handle all the details, allowing you to focus on moving forward with your life. In 2020, over 70% of Canadian homebuyers used alternative purchasing methods, such as wholesalers or off-market transactions, to secure a property [2].

Sign a Purchase Agreement

Once you and your spouse have agreed to sell your home off-market, you will need to sign a purchase agreement outlining the terms of the sale. This legally binding document will specify the purchase price, closing date, and other relevant details. Both parties should review the agreement carefully and consult with their lawyers before signing.

Close the Sale

In an off-market transaction, you can expect a quick and efficient closing process. The Canadian Real Estate Association reports that private sales typically close within 30 days, compared to the average 45-60 days for traditional real estate transactions [3]. The wholesaler or buyer will work with your lawyers to finalize the sale and transfer the title of the property. Selling your home off-market during a divorce means you can avoid the stress of a lengthy, public sale process.

Resources Available to You

• For legal support, you can reach out to the Law Society of Ontario's Lawyer Referral Service (https://lso.ca/public-resources/finding-a-lawyer-or-paralegal/lawyer-referral-service) to find a family lawyer in your area.

• The Government of Canada's Divorce and Separation information page (https://www.canada.ca/en/employment-social-development/corporate/portfolio/family-law/divorce-separation.html) provides helpful resources on the legal aspects of divorce and separation, including links to provincial and territorial family law resources.

• The Canadian Mortgage and Housing Corporation (CMHC) offers a helpful guide on Selling Your Home (https://www.cmhc-schl.gc.ca/en/buying/selling-your-home) that provides tips and advice on preparing your home for sale and understanding the financial implications of selling.

Conclusion

Selling your home off-market during a divorce can be challenging, but following these steps and consulting with professionals can help ensure a successful outcome that benefits both parties. Oakmar Group specializes in off-market real estate transactions. We can help you navigate the complexities of selling your home during a divorce by providing a fair cash offer, a quick closing timeline, and a hassle-free process. Our experienced team will handle all the details, allowing you to focus on moving forward with your life. By considering off-market options and seeking the guidance of legal and real estate professionals, you can navigate the complexities of a property sale during a divorce and move forward with your life.

References:

[1] TD Bank. (2016). Divorce and Separation: A Financial Wake-up Call. Retrieved from https://www.td.com/ca/en/personal-banking/how-to/advice-centre/money-talk/life/divorce-separation/

[2] Canadian Real Estate Wealth. (2020). Canadian Homebuyers Trend Toward Alternative Buying Methods. Retrieved from https://www.canadianrealestatemagazine.ca/news/canadian-homebuyers-trend-toward-alternative-buying-methods-334930.aspx