Guest Blog: Selling the matrimonial home after divorce: What you need to know

This blog was written in collaboration with Peter Ly of SoldWell Realty.

Divorce or separation is never easy, especially when a home is involved. It’s more than just a property — it’s the place you built a life together. 

If you're navigating the sale of a matrimonial home in Ontario, you're not alone. It can be confusing and overwhelming, but we’re here to help. With the right information, clear communication, and trusted advice, the process can be handled with fairness, clarity, and as little stress as possible.

First: What counts as a matrimonial home?

Under Ontario’s Family Law Act, a matrimonial home is any residence you and your spouse ordinarily occupied during the marriage. This could be a house, a condo, a cottage — even a seasonal property if it was regularly used by both of you.

The key legal point? Both spouses have an equal right to possession, regardless of whose name is on the title. So even if one partner owned the property before the marriage, once it became your family home, it’s treated as matrimonial property — and that comes with specific rights and responsibilities.

What are your options for the home?

There are a few common paths couples take during separation:

• Sell the home and split the proceeds

This is usually the cleanest option. You list the property, pay off any mortgage or related costs, and divide the remaining value according to your separation agreement.

• One spouse buys out the other

 If one person wants to keep the home, they can purchase the other’s share based on fair market value.

•  Continue co-owning (temporarily)

Some couples agree to co-own for a limited time, especially if children are involved. This approach requires clear legal agreements and strong boundaries — it's a business arrangement, not a personal one.

How asset division works in Ontario

Ontario uses an equalization of net family property system. Here's how it breaks down:

• Each spouse calculates their net worth on the date of separation

• The difference in net increases is equalized

• The spouse with the higher gain pays the other half of the difference

But here’s where the matrimonial home is unique: unlike most other assets, its value can’t be excluded based on when it was acquired. That means even if it was owned before the marriage, its full value is part of the equation.

For common-law couples, the rules are different — there’s no automatic right to property division, and outcomes depend on ownership, contributions, and sometimes, court decisions.

The practical side: Mortgages, agents, and timing

Selling a home during a separation requires more than just a listing. Here are some key things to keep in mind:

• Choose the right Realtor®

 Someone experienced with family transitions can be a valuable neutral party.

• Agree on costs

 You’ll need to figure out who pays for staging, repairs, legal fees, and other sale-related expenses.

• Handle the mortgage 

Any outstanding balance is paid out of the sale proceeds before anything is divided.

• Don’t rush 

Legal advice is essential before making moves, especially if you’re still legally married.

A fresh start begins here

Selling a matrimonial home isn’t just about closing a chapter — it’s about opening a new one with clarity and confidence. With the right support and a clear understanding of your rights and options, you can move forward on solid ground.