It seems more couples divorcing cannot take on the responsibility of handling two homes.
Divorcing couples are being hit especially hard by Canada’s rapidly declining home prices, rising borrowing rates, and skyrocketing living costs.
Housing problems are affecting divorcing couples.
It’s problematic, if not impossible, for divorced couples to enter the home-buying market.
The emotional toll divorce can take on a family can be substantial.
Those looking to sell their matrimonial home or buy out their spouse from the property are finding out that the present market conditions are increasingly becoming unfavorable.
The most straightforward option for divorcing couples is to list the matrimonial home for sale and split the net proceeds between the parties. Some couples opt to keep the house and sell it at a later date or have one party buy out the other.
CREA’s (Canadian Real Estate Association) data indicated that the average cost of a home fell 0.8 percent to $822,900 in June, with several major municipalities in Ontario conveying the most significant declines.
The financial consequence on couples can be astronomical.
Aside from the swiftly varying housing market, the thought of surviving on one income in this rapidly-changing economy and spiraling living costs can be terrifying for couples thinking of separating. Not to mention salaries stagnate, and most households don’t have any savings.
The dynamics of a family change when couples separate. The income used to carry one home now must maintain two separate homes. Keeping the same lifestyle with only half the income is almost impossible.
Unfortunately, the best recourse for some families is to continue living in the same home as separate households, which can cause many new problems.
One of the most critical issues in separation can be the date of separation, as this date decides the parties’ entitlements. When deciding on a separation date, it can cause complications if both parties live in the same house, albeit in different households.
If you intend to reside in the same residence, it would be prudent for the parties to solidify a separation agreement as soon as possible to ensure both parties are like-minded.
Regardless of the financial ramifications, deciding to sell the house can provide emotional solace and closure to the marriage. The emotional cost of preserving the home can be far more significant than any probable financial loss.