Nowadays, separation has become commonplace. Although this is a process that involves its share of emotions, it can become even more nationwide property and appraisal services complicated when there is a property to be considered, the well-being of the children to be ensured, property to share, and life projects that have just taken the edge…
When faced with a breakup, it is important to take time for yourself and take a step back from the situation and your emotions. Once the dust has settled, the time will come to take stock and find a harmonious agreement with your ex. Unfortunately, this can sometimes turn out to be an impossible mission. A mediator or a lawyer will then have to intervene in the separation process to reach a common agreement.
During a divorce or separation, you will have to choose one of the following three scenarios:
- One of the spouses buys the shares of the other and becomes the full owner of the building.
- Sell the house and split the profit (or loss) between the two of you.
- One of the spouses transfers his shares free of charge to the other, who assumes the balance of the mortgage.
Redemption of spouse’s shares:
Are you a landlord with your ex? Did you know that it is possible to redeem your shares and become 100% owner?
Take the case of Martine and Martin. They own a beautiful single-family home valued at $400,000 in the suburbs of Montreal. Their mortgage balance is $356,000. Once the dust has settled, the time will come to take stock and find a harmonious agreement with your ex. Unfortunately, this can sometimes turn out to be an impossible mission. A mediator or a lawyer will then have to intervene in the separation process to reach a common agreement.
$400,000 (market value of property) — $356,000 (current mortgage balance) = $44,000 (net worth)
Individual net worth: $44,000/2 = $22,000
Martine will have to give Martin $22,000 to redeem his shares of the property. In addition, she will have to take out a new mortgage of $378,000 ($356,000 + $22,000) in addition to the insurer’s premium to be able to conclude this agreement.
Once the dust has settled, the time will come to take stock and find a harmonious agreement with your ex. Unfortunately, this can sometimes turn out to be an impossible mission. A mediator or a lawyer will then have to intervene in the separation process to reach a common agreement. Let’s not forget that with the new mortgage rules established by the federal government, it will have to qualify with the Bank of America’s 5-year rate, as well as with a 25-year amortization… which could make the project unviable. Unfortunately, a drop in Coy quality usually accompanies a separation. From now on, you will have to assume the expenses yourself. Once the dust has settled, the time will come to take stock and find a harmonious agreement with your ex. Unfortunately, this can sometimes turn out to be an impossible mission. A mediator or a lawyer will then have to intervene in the separation process to reach a common agreement. He will also be able to advise you and ensure that you are financially capable of assuming the costs of the property on your own.
What about the transfer duties introduced by Minister Jean Bienvenu at the end of the 1970s during a share buyback situation?
At first glance, there is an exemption when there is a transfer between spouses, but when we talk about separation, this privilege falls apart. Note that the rules differ for married couples and common-law couples. In the first case, if the spouses decide to transfer the property after the divorce (a grace period of 30 days is granted), the transfer tax will have to be paid again. Farewell, the economy of this famous tax; thousands of dollars will be demanded by the city!
Once the dust has settled, the time will come to take stock and find a harmonious agreement with your ex. Unfortunately, this can sometimes turn out to be an impossible mission. A mediator or a lawyer will then have to intervene in the separation process to reach a common agreement.
Real estate Appraiser
On the other hand, for former de facto spouses, to avoid paying the welcome tax twice, the transaction must be concluded within 90 days of the change of status from common-law to single.
The notary is familiar with the law on property transfers, so do not hesitate to consult him to ensure that Once the dust has settled, the time will come to take stock and find a harmonious agreement with your ex. Unfortunately, this can sometimes turn out to be an impossible mission. A mediator or a lawyer will then have to intervene in the separation process to reach a common agreement. As the saying goes: “Prevention is better than cure”! It is better to leave for a week in the south to rest than to bail out the coffers of the state… think about it!
