Going through a divorce is an emotionally challenging process, and the division of assets can be one of the most difficult aspects to navigate. If you’re concerned about keeping your home during a divorce, it’s crucial to understand that there are several strategies you can employ. As a mortgage broker, I’ve helped many clients preserve their homes during a divorce, and in this blog post, I’ll share some key insights and tips to help you do the same.
Scott Trainor, mortgage broker, standing on a street in Saskatoon
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Open Communication
Effective communication is essential during a divorce. If both you and your ex-spouse want to keep the home, discuss your options openly. You might decide to sell the property. Split the proceeds, or one of you may choose to buy out the other’s share. Make sure to involve your lawyer or a mediator to help you make informed decisions that are fair to both parties.
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Understand Your Current Mortgage
You should have a clear understanding of your mortgage terms. This includes the interest rate, monthly payments, and whether there are any prepayment penalties. This knowledge will help you assess your ability to maintain the mortgage on your own or negotiate with your ex-spouse. Call me today and I can help get this information for you.
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Refinance Your Mortgage
If you intend to keep the home, refinancing your mortgage is often a viable solution. This process involves taking out a new loan to pay off the existing mortgage and possibly provide your ex-spouse with their share of the equity. Before refinancing, ensure you are in a good position to approve for a mortgage.
Another strategy that I love to use is: CMHC and Sagen allow a spousal buyout, in which you can purchase the home from your spouse up to 95% the value. There is specific criteria to do this so please call me to discuss.
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Seek Professional Advice
Consulting with professionals is critical in this situation. You should hire an experienced divorce attorney who can help you navigate the legal aspects of property division. Additionally, speaking with a financial advisor or a mortgage broker can provide you with valuable insights into the financial implications of keeping your home.
Conclusion
Divorce is a challenging time. With careful planning and the right approach, you can keep your home or at least make informed decisions about its future. Open communication, understanding your mortgage, and seeking professional advice are crucial steps to protect your home during a divorce. Whether you choose to refinance, draft a co-ownership agreement, or sell the property, working together with your ex-spouse to reach an amicable resolution is key to ensuring a smooth transition and a stable financial future. Remember, your home is not just a house; it’s a place where you’ve created memories and built your life, and it’s worth fighting for, within reason.