Dividing property after a separation or divorce can be complex. A spousal buyout offers a way for one partner to keep the shared home by buying out the other’s equity share—avoiding the need to sell and helping maintain stability.

What Exactly Is a Spousal Buyout?

A spousal buyout occurs when one partner purchases the other’s interest in a jointly owned home. It involves:

-Determining the home's market value and each person’s equity share.

-Using tools like a Canadian spousal buyout calculator to estimate the buyout amount.

-Financing the buyout—often with a spousal buyout mortgage, which can fund up to 95% of the home’s appraised value.

-Securing a legally binding separation agreement to formalize the arrangement.

-Finalizing the transfer of mortgage and payout to the selling partner.

Financial Considerations

Accurate home appraisal is key. A buyout calculator can help assess what’s owed based on home value, mortgage balance, and equity split. Buyers typically seek a spousal buyout mortgage to avoid draining savings. Also factor in legal fees, administrative costs, and mortgage terms, which affect long-term affordability.

CMHC Spousal Buyout Program

The Canada Mortgage and Housing Corporation (CMHC) offers a program for separating couples that allows refinancing up to 95% of the home’s value. To qualify, a formal separation agreement is required. This program makes it easier for one partner to retain the home without a sale.

Need Help?

Navigating a spousal buyout can be emotionally and financially overwhelming. Feel free to contact me with any questions or if you need experienced help to guide or advise you.