October 19, 2011: What Happens to the Matrimonial House after Divorce?

By April Lopez

Many people stay in an unhappy marriage for the sake of the kids. But what about staying together for the sake of the house?

It may sound silly, but many people have deep-rooted attachments to homes.

However, only a few of us would advise our friends to stay in a bad marriage just to keep their beloved house. Vanier Institute of the Family recently conducted a study and revealed that 40 percent of first marriages end in divorce.

And that means a lot of couples facing the same tough decisions about what to do with the matrimonial home.

Here's what you need to know if you find yourself in a similar situation. The full value of the matrimonial home should be equally divided between a husband and wife, according to the Ontario Family Law Act.

However the 50/50 split won't happen if there's a prenuptial agreement, or when the court finds unusual circumstances that make such a split unfair. Finances, logistics, emotional attachments and the children are just among the things that need to be considered in these situations. These decisions require professional advice from lawyers, mortgage brokers and real estate agents, as well as soul searching.

Talking to a professional is the best decision you can make for yourself and your family. Assessing the value of your house, and your share of it, is important. So what happens next? Are you hoping to buy out your partner's share of the home so you can stay?

You may take into account bills, property taxes and maintenance expenses. Always remember that the financial burden extends beyond the mortgage. You may need to refinance your mortgage and this requires enough income and a good credit rating.

In addition, alimony and/or child support may help you qualify. Apply for a mortgage preapproval to ensure that your eyes aren't bigger than your wallet, if you choose to shop for a new place.

Depending on your means, renting may be the most viable option although your share of the matrimonial home will help considerably. From both a financial and an emotional perspective, selling the home to a third party is often the best scenario. Sitting down with a real estate agent and calmly discussing matters such as the listing price and negotiating tactics can be quite difficult for divorcing partners.

However a good agent will guide you through the whole process with minimal discomfort and help serve as an objective voice.

Make every attempt to embrace this chance to have a new beginning whatever path you choose, and have a happier home.

It's extremely important that you don't allow your emotions to get the best of you whether you're legally separating or filing for divorce. It's important that you keep a level head and make certain your financial affairs are in order. To find the right divorce professional for you, click here..

Find local divorce information, click here: http://www.divorcemag.com/findprofessional.php

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