Terry  Isaryk

Terry Isaryk


RE/MAX Performance Realty

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Winnipeg Divorce Real Estate Tips


DIVORCE:  What You Need to Know About Your House, Your Mortgage and Taxes

Divorce Home Sale

What you need to know about divorce home sale

How to Avoid Costly Housing Mistakes in the Midst of a Divorce

"Once you know how a divorce affects your home, mortgage and taxes critical decisions are easier. Neutral, third party information can help you make logical, rather than emotional decisions."

Divorce is a tough situation which opens up many emotional and financial issues to be solved. One of the most important decisions is what to do about the house.


In the midst of the heavy emotional and financial turmoil. What you need most is some non-emotional. Straight-forward, specific answers. Once you know how a divorce affects your home, your mortgage and taxes, critical decisions are easier. Neutral, third party information can help you make logical, rather than emotional decisions.

Probably the first decision is whether you want to continue to living in the house. Will the familiar surroundings bring you comfort and emotional security, or unpleasant memories? Do you want to minimize change by staying where you are, or sell your home and move to a new place that offers a new start?

Only you can answer these questions, but there will almost certainly be some financial repercussions to your decision process. What can you afford? Can you manage the old house on your new budget? Is refinancing possible? Or is it better to sell and buy? How much house can you buy on your new budget? The purpose of this report is to help you ask the right questions so you can make informed decisions that will be right for your situation.

Your most Common Options:

You have 4 basic housing options when in the midst of a divorce:

  1. Sell the house now and divide up the proceeds.
  2. Buy out your spouse.
  3. Have your spouse buy you out.
  4. Retain your ownership.

It's important for you to understand the financial implications of each of these scenarios.

1. Sell the House Now and Divide the Proceeds - Your primary consideration under these circumstances is to maximize your home's selling price. We can help you avoid the common mistakes most homeowners make which compromise this outcome. As you work to get your financial affairs in order, make sure you understand what your net proceeds will be - i.e. after selling expenses, and after deter­ mining what your split of the proceeds will be. Note that the split may not be 50/ 50, but rather may depend on the divorce settlement, the source of the original down payment, and the legislative property laws in your area.

2. Buy Out Your Spouse - If you intend to keep the house yourself, you'll have to determine how you'll continue to meet your monthly financial obligations, if you now only have one salary. If you used two incomes to qualify for the old loan, refinancing on your own might be a challenge.

3. Have Your Spouse Buy You Out - If you are the one who is leaving, you have the opportunity to start again in new surroundings with cash in your pocket. However, be aware that if the old home loan is not refinanced, most lenders will consider both you and your spouse as original co-signers to be liable for the mortgage. This liability may make qualifying for a new mortgage difficult for you if you decide to purchase a home, even though you won't have legal ownership.

4. Retain Joint Ownership - Some divorcing couples postpone a financial decision with respect to the home and retain joint ownership for a period of time even though only one spouse lives there. While this temporary situation means you have no immediate worries in this regard, keep your eye on tax considerations which may change from the time of your divorce to the time of the ultimate sale.


Contact Terry at 204-999-7653 for a confidential real-estate consultation; great care is taken to be discrete including only the use of unmarked vehicles.


Detailled information on the The Family Property Act

(or copy and paste this link http://www.gov.mb.ca/justice/family/law/pubs/familylawbooklet2014.pdf#page=60)


The material contained in this report is for information only. It is not intended to replace individualized legal advice. It is recommended to seek professional legal counsel for your legal issues.  Not intended to solicit property currently listed for sale Copyright @Craig Proctor Productions 1998



familylawbooklet2014.pdf755.24 KB