Love, Separation & Real Estate

Protecting Your Property When Moving In Together or Parting Ways

When life throws curveballs—like divorce or making the big move with a significant other—real estate can become the centre stage of complex decisions. Let’s break down your options as a home seller during a divorce in Ontario, and how to protect yourself when purchasing property with your partner. We’ll keep it professional but sprinkle in just enough fun to make this journey manageable.

Selling a home during divorce

Divorce is stressful, but navigating your real estate doesn’t have to add to the headache. 

Here are your main options as home sellers in Ontario:

1. Sell and Split the Proceeds

The simplest and cleanest option: put the house on the market, sell it, and split the proceeds based on your agreement (or court ruling). Before listing: 

  • Agree on Pricing: Work with a trusted real estate agent to determine a fair market value.

  • Settle Costs: Factor in realtor commissions, legal fees, and mortgage penalties (if any).

  • Stage Smart: Present your property in its best light to maximize value—your agent can guide you here.

  • Agree on Agent(s): Both parties either have to agree on an agent, or have two agents co-list the property. 

2. Buy Out Your Partner

If one party wants to keep the home, you can opt for a buyout. Here’s what to consider:

  • Get a Professional Appraisal: Ensure the buyout price reflects the home’s fair market value.

  • Check Your Finances: Will you qualify for a mortgage on your own? Speak to a lender before committing.

  • Legal Protection: Draft a formal agreement with your lawyer to make the buyout official.

3. Co-Ownership for the Short Term

Sometimes, you’re not ready to sell or buy out your partner. Co-owning temporarily while transitioning can be an option. Be sure to establish clear guidelines for:

  • Maintenance responsibilities.

  • Payment of mortgage, property taxes, and utilities.

  • Setting a timeline for eventual sale or buyout.

4. Rent It Out

If the market isn’t ideal for selling, consider renting out the property. This can generate income while you sort out your finances and make long-term decisions. Just be sure you both agree on terms for managing the property and splitting profits.

Protecting Yourself when buying with a significant other

Moving in together and purchasing property is exciting, but let’s be real—love doesn’t come with guarantees, and protecting yourself is just smart adulting. Here’s how to safeguard your investment:

1. Draft a Co-Habitation Agreement

Think of it as a real estate prenup. A co-habitation agreement outlines:

  • Each party’s contribution to the down payment, mortgage, and other costs.

  • What happens if one of you wants to sell or move out.

  • How the proceeds from a future sale will be divided.

2. Title Ownership Matters

When you’re adding both names to the deed, you’ll need to decide on the type of ownership:

  • Joint Tenancy: Equal ownership with a right of survivorship. If one person passes, the property automatically transfers to the other.

  • Tenants in Common: You can own unequal shares of the property, and your share can be willed to someone else.

3. Contributions: Keep Track!

Document everything—from who paid the down payment to who’s covering monthly bills. This record can save you major headaches down the road.

4. Insurance and Emergency Funds

  • Consider getting life insurance to cover the mortgage if something happens to one partner.

  • Build a joint emergency fund to cover unexpected repairs or income disruptions.

5. Talk About the Future

Yes, the money talk can be awkward, but it’s necessary. Discuss:

  • What happens if one of you wants to sell.

  • Long-term plans for the property (e.g., investment vs. forever home).

Life happens, and your real estate should support your journey, not complicate it. By knowing your options and protecting yourself, you can navigate these transitions with confidence.

Whether you’re navigating a divorce or purchasing with a partner, having a strong team of professionals is crucial:

  • Real Estate Agent: Guides you through pricing, marketing, and negotiations.

  • Lawyer: Drafts agreements and ensures your rights are protected.

  • Mortgage Broker/Financial Adviser: Helps you understand the long-term impact of your decisions.

If you’re looking for expert advice, we’re here to help. We have personally navigated these situations and have helped guide our clients during these sensitive transitions. 

We would love to share our knowledge and guide you thorough this stage of your journey. Reach out to us here to chat about how we can help. 

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