Going through a divorce or becoming legally separated is always a challenging and emotional time. So many questions regarding your largest asset – your home, and what can be done to satisfy both parties. I speak with many clients at different stages of a marital split; before the conversation with the spouse, before a legal separation is drawn up, and before the final divorce decree.
If one partner wants to stay in the home and buyout the other spouse then this can be accomplished via a spousal buyout of up to 95% of the value of the property. With your typical refinance the maximum is 80% of the value of the property however, the spousal buyout is a strategy which is an exception with lenders and high ratio insurers. This allows you to payout a specific amount (spelled out in a separation agreement) to the other partner to have them taken off title and essentially no longer claim ownership in the property. Joint debts may also be included in the mortgage.
An interesting article from Spring Realty Inc. lays out a legal standpoint regarding another popular question about land transfer tax. Click here to read the article…
We can guide you throughout this process regardless of what stage of your marital split you are in. We can answer the questions that are most relevant to your particular situation, and if a spousal buyout is a suitable option then we can facilitate this as well. Out trademark solution “The New Chapter Solution™” is a strategy that we employ for clients that are going through the transition of a marital breakdown. For more information please refer to “The New Chapter Solution™” and feel free to call us. We are here to help!
Kim Gibbons, Mortgage Superhero ®
FSCO lic. M08001363
Your Toronto Mortgage Broker