For many people, their home is their most valuable asset. According to data from Zillow, the average value of a home in Ontario is $668,690 in October 2024 —a sharp year-over-year rise. If you are a homeowner who is preparing for a divorce, it is crucial that you know how to protect this asset. You may be wondering: Who gets the house in a divorce? The answer depends on a wide range of case-specific factors—though marital assets, including a house, are generally divided equally. Here, our Ottawa divorce lawyer provides a guide to dealing with the family house in a divorce in Ontario.
Know the Law: The Value of the Marital Property is Divided in Ontario
First and foremost, it is important to understand how property is divided in a divorce in Ontario. As explained by the Ontario Ministry of the Attorney General, “property acquired during a marriage must be split equally when a marriage ends for any reason.” However, in Ontario, the division is not about splitting ownership of the assets themselves but rather equalizing the value of those assets. This means that the value of all a couple’s marital property—subject to specific exclusions and deductions, including a matrimonial home—must be determined, and an equalization payment may be owed to achieve fairness in the distribution of the value.
How and When the Home Was Acquired Makes a Big Difference
Given how Ontario handles property division in divorce, how and why a home was acquired can make a big difference. With that being said, there are some specialized legal considerations for the “matrimonial home.” Ontario defines the matrimonial home as properties within Ontario that are ordinarily occupied by the couple as their family residence at the time of their separation. Here is what happens to that home:
- One Spouse Owned Home Pre-Marriage (Prenup or marriage contract): A matrimonial home can be protected with a prenuptial agreement. In Ontario, when one spouse owned the matrimonial home before marriage and there is a valid prenuptial agreement, the terms of that agreement can influence how the home’s value is divided upon divorce. While the matrimonial home is given special status under the Family Law Act, a prenup can contract out of the sharing of the initial equity or growth in equity of the home.
- One Spouse Owned Home Pre-Marital (No Prenup nor marriage contract): Unlike other forms of pre-marital property, a matrimonial home cannot be fully protected without a prenup, as it does not qualify for a date of marriage deduction. It becomes marital property by the act of living in it together and occupying it as an ordinary residence at the time of separation.. The Family Law Act holds that the matrimonial home cannot be deducted (except by contract) from a spouse’s net family property, even if owned pre-marriage. Upon separation, the full value of the home is included in the equalization calculation.
- Home Obtained After the Start of the Marriage (All Equity is Split): When a home is purchased after the marriage begins and serves as the matrimonial home in Ontario, all equity in the property is assessed when determining an equalization payment owing. During property division, the home’s equity is included in the appropriate title owner’s net family property, subject to trust claims and other legal considerations, when calculating each spouse’s net family property.
Three Options for Dealing With Your Home in a Divorce in Ontario
A family home is deeply personal. The best way to deal with it in a divorce depends on a wide range of case-specific factors. There is no one-size-fits-all solution. As a general rule, divorcing couples who share a home in Ottawa or elsewhere in Ontario have three options for dealing with it:
- Sell it and Split the Proceeds: You and your spouse can both move out of the home, sell it, split the proceeds, and move forward with your life. In some cases, this is the most straightforward option. The sale can simplify the division of property by converting the home into cash—making it easier to settle along with your other financial matters. It also provides a clean break, allowing both parties to move on without ongoing ties to the property. That may or may not be desirable.
- Continue to Co-Own the House: You do not have to end joint ownership. Continuing to co-own the house after divorce is an option some couples choose. It is most common when children are involved and/or when market conditions are unfavorable. One spouse could keep living in it or you and your partner could rent it out with plans for a future sale. Co-ownership requires a clear agreement outlining each party’s rights and responsibilities.
- One Spouse Gets It (Buy Out): In a buyout, one spouse retains ownership of the matrimonial home by simply purchasing the other spouse’s share. Usually, that purchase is done by making an adjustment when dividing the value of other assets during the divorce, such as for example, a pension. This option allows the spouse who stays to maintain continuity. It can be beneficial for children or may be one spouse’s personal preference. However, this option can be a little more challenging if the couple has considerable home equity and relatively limited liquid assets. A creative solution—and potentially a period of co-ownership—may be required.
We Help Clients Find Solutions to Difficult Property Division Issues
Dividing the value of property in a divorce can be exceptionally challenging. For both financial and sentimental reasons, the family home can be hard to deal with in a separation. At RPB Family Law, our Ontario divorce lawyers take on the most complex of property division cases. We are prepared to review your case, understand your financial situation, protect your rights, and work towards negotiating a solution to dealing with your house—and your other property/assets—that protects your interests.
Get Help From Our Ottawa Divorce Lawyer Today
At RPB Family Law, our Ottawa divorce lawyers have the skills and experience to handle all types of property division cases. If you have any questions about how to deal with the family home in a divorce, we are here to help. Contact us today for a completely confidential, no obligation initial case review. With an office in Ottawa, we provide family and divorce representation throughout Ontario.
