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Divorce and Your Home

Your options for the house, and what Alberta law requires

What Happens to the House

For most separating couples the home is the largest asset and the hardest decision. It is also the one that cannot wait indefinitely. This page covers the options and what Alberta requires — so you can have an informed conversation with your lawyer rather than a confused one.

Get Legal Advice First

We are REALTORS®, not lawyers, and nothing here is legal advice. Property division on separation is governed by Alberta's family property legislation and depends heavily on your circumstances. Speak to a family lawyer before you make decisions about the home — including before you list it.

Three Common Paths

Sell and divide the proceedsThe cleanest break, and usually the simplest to agree on. Both parties see the same number and neither carries the property forward. It requires cooperating long enough to prepare and sell the home, which is the part people underestimate.
One person buys the other outKeeps children in the same home and school. It depends on two things: agreeing a value, and whether the person staying can qualify for the mortgage on their own income. Worth checking the second before negotiating the first.
Delay the saleSometimes agreed to keep things stable for a period, with the sale to happen at a set point. It ties both people to the property and to each other financially, so the terms need to be set out properly rather than left informal.

Things Specific to Alberta

Both spouses usually have to consent. Alberta's Dower Act gives a non-owning spouse rights in the family home, so a sale generally cannot proceed on one signature even if only one name is on title. Your lawyer will confirm how this applies to you.

You will need a current value, not a guess. Whether you are selling or buying each other out, both sides need a number they can trust. Sometimes a formal appraisal is appropriate; sometimes a REALTOR®'s market evaluation based on comparable sales is enough. Your lawyer can tell you which your situation calls for.

Check the mortgage penalty early. Breaking a mortgage before the end of its term can cost thousands. Ask your lender what it would be, and whether the mortgage can be transferred or ported, before dates get committed to.

If You Do Sell

Decide early who the REALTOR® is working for. We can act for both of you jointly where that is appropriate and both agree, or each of you can have your own representation. Either is fine — what causes problems is leaving it unclear. Communication, showing arrangements and how decisions get made are all easier when they are agreed at the start rather than negotiated under pressure.

A Quiet Conversation, No Commitment

Plenty of people contact us at the stage where nothing has been decided and they simply want to understand what the house is worth and what the options look like. That is a perfectly good reason to get in touch. Nothing you tell us goes anywhere, and there is no pressure to list.

TALK TO SOMEONE DISCREETLY


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Dusko Sremac
#101 7710 5th St SE
Calgary, AB T2H 2L9
587-578-7653
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