Dealing with real estate during a divorce or separation in Edmonton is like going through a storm. You and your partner, who once shared dreams of a future together, now face the reality of dividing your family home.

It’s a situation that brings more questions than answers. How do you handle the mortgage payments? Who gets what? And then there’s the mortgage balance, a reminder of a commitment made together.

Here are some tips for dealing with real estate during a divorce & separation in Edmonton:

• Consult a Legal Expert During Separation
• Evaluate Property Options Fairly During Separation
• Manage Mortgage Payments Responsibly During Separation
• Fairly Divide the Sale Proceeds of Your Home
• Understand the Tax Implications When Selling Your Home

In this guide, I will walk you through each step of this process. So, please take a moment, breathe deeply, and let’s begin this journey together, one thoughtful step at a time.

1. Consult a Legal Expert During Separation

Getting professional legal advice is like grabbing a life jacket when you’re out at sea. It’s invaluable. When you and your spouse decide to separate, it’s about who keeps the house, the mortgage payments, and that daunting mortgage debt.

Each couple’s situation is unique – maybe you’re common-law spouses or a married couple with a long history. The law looks at these relationships differently.

A legal expert will help you understand these differences and how they affect your real estate decisions. They guide you through the following:

• Division of family property
• Non-convertible properties
• And even trust property rights.

They’re the ones who will decipher all the legal jargon. With them by your side, you won’t be left scratching your head over terms like ‘transferee spouse’ or ‘matrimonial home transfer’.

2. Evaluate Property Options Fairly During Separation

When separating, one big decision is whether to sell your home. Both you and your spouse must agree on what to do. If one of you wants to keep the house, you might consider a buyout.

This means the person who stays will take over the mortgage and pay the other person their part of the house’s value. The main thing is to make sure both of you feel the deal is fair and that no one loses too much money.

You need to know the real value of your home. You should get a professional appraisal to tell you how much your house is worth. This is not the time to guess or think about how much someone else’s house sold for.

House prices go up and down a lot. In places like Edmonton, where the market changes quickly, your house might be worth different than what you think.

Knowing the value of your house helps you and your ex talk about how to split things fairly and make decisions about the property.

It gives a clear and honest picture of your home’s current value.

3. Choose a Real Estate Agent

You need someone who’s not just good at selling houses. You need one who understands the emotional and legal complexities of selling during a divorce.

They should have a divorce specialist designation or experience in handling such sales. They’re part agent and part mediator.

They will navigate both the sale and the sometimes choppy waters of a divorcing couple’s emotions and expectations. This agent will be key in:

• Managing real estate transfers
• Dealing with potential Land Transfer Taxes
• And making sure the legal transfer of the property is smooth and by the book.

Remember that you’re dealing with lives changing and moving in new directions throughout this process.

It’s about making informed decisions that set everyone up for the next chapter, whatever and wherever that might be.

4. Manage Mortgage Payments Responsibly During Separation

When you’re separating, note that the mortgage company still views you as responsible for the debt. You must keep up with the mortgage payments until the house is sold or one person takes over the mortgage.

If one of you stops paying, the other might have to pay the full amount to keep their credit score from being affected. It’s a good idea to talk about who will pay what before you sell the house.

If both of you have enough income, you might decide to keep sharing the payments.

However, if one person moves out and the other stays, the one staying might start paying the whole mortgage. Make sure to write down these details, possibly in a legal separation agreement, to avoid confusion or arguments later.

Remember, the amount left on the mortgage will impact how much each of you gets when the house is sold. If there’s a lot of mortgage debt, it will be paid off first from the sale, and then you can split any money that’s left over.

5. Fairly Divide the Sale Proceeds of Your Home

When you sell your house during a separation, think about how to split the money fairly.

Consider who paid more for the mortgage or took care of the house. Also, think about if one of you put a lot of money into fixing up the home. All these things will affect how you divide the money.

If you have legal agreements like a cohabitation agreement or a prenup, these will play a big role in how you split the property. These documents should be followed when deciding who gets what.

Sometimes, couples agree on a way to split the money that feels fair to both, even if it’s not exactly half and half. The goal is to find a balance that respects how much each person puts into the home and what each person needs.

6. Understand the Tax Implications When Selling Your Home

When selling your house, especially during a separation, be aware of possible tax implications, like capital gains tax. This tax applies if your house has increased in value since you bought it.

But many homeowners in Edmonton have an advantage. If you’ve been living in the house as your main home, you often don’t have to pay capital gains tax on the profit from the sale.

Even with this general rule, talking to a tax expert or mortgage broker is smart. They will give you specific advice on how the sale of your home could affect your taxes. This way, you will plan better for any tax responsibilities.

Embracing Your Next Chapter with Ease

In these times, when real estate seems overwhelming, know that you’re not alone. Support is available, tailored to help you focus on your well-being and the exciting prospects ahead.

As Edmonton’s favourite Realtor®, Amrit Hunjan, I’m here to offer that support. I will ensure that your real estate concerns are handled with utmost care and professionalism.

Let me take the weight of these responsibilities off your shoulders. Concentrate on what truly matters: healing, moving forward, and embracing the new life that awaits you.

This is a time for you to look forward with optimism, and I am here to help pave the way for your bright future. Reach out, and let’s navigate this journey towards your bright beginnings.