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What Happens to Your House When You Split From Your Spouse?

Updated: Jul 22, 2023

two keys with a house split down the middle

One of the main concerns expressed by married couples who have separated is what will happen to their home. The property occupied by both spouses in a marriage is known as the matrimonial home. If a married couple has multiple properties in the province, such as a home and a cottage, both properties will be considered matrimonial homes so long as both spouses use the property. If a married couple separates, both spouses have a right to stay in the home and therefore, they cannot lock each other out unless a court order or separation agreement stipulates otherwise.

When married couples split, they conduct an "equalization of net family property" process. The spouse with a higher net value compensates the lower net value spouse with a specific sum. Each spouse calculates the value of their property minus debts and liabilities at the date of marriage and separation. The value at the date of marriage is subtracted from the valuation date's value to calculate the net family property value. The higher net value spouse pays 50% of the difference to the other spouse. For instance, if one spouse has a net property value of $500,000 and the other spouse has a net property value of $200,000, the higher net value spouse would pay $150,000 to the other spouse.

Understanding the equalization process is crucial because it includes the calculation of the net family property value, which involves the matrimonial home. Regardless of its ownership or acquisition before or during the marriage, if the home is used as a matrimonial home, it is included in the calculation. In the event of a divorce, if one spouse wants to keep the home, they must buy out the other spouse. If the couple decides to sell the home, each spouse is entitled to half of the proceeds from the sale.

It's important to note that the above rules apply only to married couples, and not to common-

law couples. If you are in a common-law relationship, the home will remain in the possession of

the legal owner if separation occurs.

We hope this post gave you a better understanding of your rights to the matrimonial home.

Please do not hesitate to contact us if you have any further questions at or 905-215-1905.

43 views1 comment

תגובה אחת

30 ביוני 2023

I found this blog post to be incredibly informative about what happens to the matrimonial home when married couples separate. It provided clear explanations of how the equalization of net family property works, and I appreciated the inclusion of examples which made the process easier to understand. The post also helpfully emphasized that the rules discussed only apply to married couples, not common-law ones. Overall, it served as a valuable resource for anyone seeking clarity on property division during divorce.

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