Divorce and Disposing Property
Divorce can be a difficult and emotional process, and making decisions about assets such as real estate can add an extra layer of complexity. If you and your spouse own property in Toronto and are considering divorce, you may be wondering how to handle the sale or transfer of your real estate. In this post, we’ll explore the options available to you and discuss the benefits of using your own real estate agent during this process.
First, it’s important to understand that in Ontario, real estate is considered a matrimonial asset, which means that it is subject to division during a divorce. There are several options available for dividing real estate assets during a divorce, including:
- One spouse can buy out the other’s share of the property: If one spouse wishes to keep the property, they can buy out the other spouse’s share by paying them their fair market value of the property. This option is often used when one spouse has strong emotional ties to the property or when the property has significant sentimental value.
- The property can be sold and the proceeds divided: If neither spouse wants to keep the property, it can be sold and the proceeds divided between the two spouses. This option is often used when the property has little sentimental value or when the spouses are unable to agree on who should keep the property.
- One spouse can keep the property and give the other spouse other assets of equal value: This option is similar to the first one, but rather than paying the other spouse their share of the property in cash, the spouse who keeps the property can give the other spouse other assets of equal value, such as stocks or retirement accounts.
How Two Different Agents Can Sell Property for Divorcing Couples
- Each spouse selects their own real estate brokerage: You and your spouse will each choose a real estate brokerage to represent you. It’s important to take your time and do your research when selecting a brokerage. Look for a brokerage with a good reputation and a track record of success in the local market.
- Each brokerage markets the property: Once you have selected your brokerages, each brokerage will work to market the property to potential buyers. This may involve listing the property on multiple real estate websites, holding open houses, and networking with other real estate professionals.
- The brokerages negotiate offers: When an offer is received for the property, the brokerages will negotiate on behalf of their respective clients. This may involve discussing the terms of the offer, such as the price and closing date, and making counteroffers if necessary.
- The property is sold: Once the terms of the sale have been agreed upon, the property will be sold and the proceeds will be divided between the two spouses according to the terms of the divorce settlement.
Using two real estate brokerages during a divorce has several benefits. First and foremost, it allows each spouse to have their own representation, which can be especially important if the divorce is contentious. Each spouse will have their own advocate working on their behalf to ensure that their interests are protected.
Using two real estate brokerages can also help to ensure that the sale process goes smoothly. By having two professionals working on the sale, you can be confident that all aspects of the process are being handled efficiently and effectively.
Another benefit of using two real estate brokerages is that it allows for a higher level of specialization. Each brokerage will bring their own unique expertise and perspective to the table, which can be especially valuable when it comes to marketing the property and negotiating offers.
In summary, using two real estate brokerages during a divorce can be a smart move if you and your spouse own real estate in Toronto. It allows for each spouse to have their own representation, helps to ensure that the sale process goes smoothly, and allows for a higher level of specialization. Just be sure to do your research and choose reputable brokerages to work with.
