Ending a relationship rarely goes smoothly, but when a property hangs in the balance, strong emotions can lead to poor financial decisions.
In Québec, different rules apply whether a couple is married or in a de facto union. And the most expensive mistakes aren’t always due to conflict… but to a lack of foresight.
These are the most frequent.
1. Assuming Each Spouse Gets a Share
Common-law couples don’t enjoy the same protections as married couples. That said, since June 30, 2025, a new law grants certain additional rights, particularly regarding the family home, to common-law spouses with children born after that date. Accordingly, each spouse has a right to half of the property’s value in most cases.
Conversely, in the case of a childless couple (as of June 30, 2025), only the spouse named in the title deed is entitled to the property’s value. Therefore, the other spouse can only receive half of the value in precise situations provided for by the law or when both parties have signed a written agreement specifying each’s share.
Hence the importance of checking the following during a separation:
- Who’s the owner of the property as recorded in the land register?
- Whose name is on the mortgage?
- Who contributed what portion of the downpayment? (For example, does a notarized contract exist stating that in the event of a sale, you’re to recover the downpayment you put down in full?)
While these points may all seems like technical details, they directly affect the rights of all parties involved. When one of the spouses isn’t listed on official documents, things can get complicated fast, and seeking legal advice may be necessary to protect one’s rights.
2. Wanting the House “at Any Price”
Emotional attachment, a desire for stability, or even pride may motivate one of the spouses to wish to remain in the family home.
But keeping the house entails taking on a set of financial responsibilities alone:
- Mortgage payments
- Compensation to the other spouse (their share of the property’s value)
- Refinancing
- Long-term maintenance
A common mistake is to underestimate the actual monthly costs. Taxes, insurance, maintenance, unexpected repairs—there’s more to consider than just the mortgage payment!
While holding on to the house may feel reassuring at first, it can turn into a financial burden over time.
3. Underestimating the Cost of Refinancing
Refinancing is often the only way to buy out the other spouse’s share.
The spouse retaining the home must usually undergo a new mortgage approval assessment (generally free of charge) as well as pay any notary fees, and bank fees and penalties for breaking the mortgage.
Given how much interest rates have jumped since the time of purchase, the person keeping the property may face significantly higher monthly payments. Make sure you crunch the numbers!
4. Putting off the Sale Because of Indecision
Some separations drag on for months, during which time the situation regarding the residence remains unclear.
- Who pays for what?
- Who leaves and who stays?
- Who will care for the property?
In the meantime, the market may shift, the value may fluctuate, or the house may deteriorate. Sometimes, waiting before selling is wisest… but not always!
It’s best to consult a real estate broker who can advise you on the current state of the market.
5. Not Considering the Financial Consequences
When a couple separates, they often have to decide whether to sell the property straight away or whether one partner should buy out the other’s share. However, when making this decision, the former spouses sometimes overlook the tax implications.
A principal residence is generally exempt from capital gains tax. Nevertheless, certain situations can complicate matters:
- if part of the house has been converted into a rental unit;
- if it’s in fact a second home;
- if one of the former spouses occupies the residence for several years before selling it
- etc.
In such cases, the sale may not be entirely tax-exempt, it’s thus advisable to check the tax implications before finalizing a property transaction to avoid any unpleasant surprises.
6. Accepting an Unfavourable Agreement
Some people agree to a disadvantageous settlement with their ex-spouse simply to “move on” without considering its impact on their future ability to purchase a property.
A frequent mistake, then, is to focus all one’s energy on resolving the question of the house… without a clear plan for what comes next.
Yet it’s important to remember that a person’s ability to buy a home at a later date will depend on their
- individual income;
- debt-to-asset ratio;
- credit history;
- liquid funds.
A Real Estate Decision, not just an Emotional One
A separation is an emotionally charged time. But decisions regarding property made in haste or under pressure can have long-lasting financial consequences.
Selling quickly isn’t always the wrong choice.
Keeping the house isn’t always the right one either.
A RE/MAX real estate broker can guide you through this difficult process.