Selling · Separation and divorce · 2026
Sell, buy out or keep: three options, and the right one depends less on emotions than on three numbers, net equity, your borrowing capacity alone and the calendar. Here is the split by status, the welcome tax, and the order of steps.
After a separation, the house is settled one of three ways: sell it and split the net proceeds, buy out the other's share (with a refinance in your name alone and no welcome tax: the Act respecting duties on transfers of immovables exempts transfers between spouses and, more recently, between ex-de facto spouses within 12 months of the end of cohabitation), or keep it together in undivided co-ownership for an agreed period, for the children or to wait out the market. The split depends on status: married or in a civil union, the family residence is part of the family patrimony and its net value is split in half whatever the name on title; de facto spouses with a child born or adopted since June 30, 2025, the parental union regime splits the family residence, furniture and vehicles; de facto spouses with no child or with children born before, each keeps what is in their name, unless there is an agreement. Buying out the share means qualifying alone at the stress test (6.24%) for the whole loan plus the amount paid to the other, often the real obstacle in 2026. Selling during a separation triggers no tax (principal residence) and not the 365-day flipping rule (a 90-day separation is an exception). The realistic timeline: agreement or judgment first, then listing, 30 to 60 days to sell, 30 to 60 days to the notary.
| Status | Rule on the family residence | Note |
|---|---|---|
| Married or civil union | Family patrimony: the net value of the residence is split equally, whoever is on title | Possible deduction for contributions made with property owned before the marriage or received by inheritance or gift; one spouse cannot sell or mortgage the residence without the other's consent |
| De facto spouses in a parental union (child born or adopted since June 30, 2025) | Parental union patrimony: family residences, furniture and family vehicles split on separation or death; the court can grant temporary use of the residence to the custodial parent | Waiver or exclusion of an asset possible by notarial act; inherited or gifted property excluded |
| De facto spouses with no child, or children born before June 30, 2025 | No automatic split: each keeps what is in their name; with both on title, split by the shares on title (50/50 by default) | A co-ownership or cohabitation agreement can provide otherwise; an unjust enrichment claim remains possible but slow |
Sell and split: the net proceeds (price minus mortgage, 5% commission plus taxes, any penalty, notary) are split under the rule above. Simple, final, and often the only choice when neither qualifies alone. Buy out the share: an appraisal (broker or chartered appraiser), the net equity calculation, a refinance in the name of the spouse who stays to cover the balance and the share paid out, a notarial transfer of the share; no welcome tax between married spouses, nor between ex-de facto spouses who lived together 12 months and transfer within 12 months of the breakup (see welcome tax on separation, French). The lender requires the departing spouse to be released from the mortgage, otherwise they remain liable. Keep in co-ownership: a written agreement (who pays what, who lives there, duration, price and method of sale at the end, right of first refusal), useful to finish the school year or wait for a mortgage maturity without penalty; risky without an agreement.
Qualifying alone: the lender recomputes the ratios (39%/44%) at the stress-test rate with the new loan and support paid or received; one salary that carried the house for two often does not pass, and the answer comes in three days with a pre-approval. Penalty: if the sale or refinance falls before maturity, three months' interest or the differential; porting to the next purchase avoids it. Tax: none on the principal residence; a transfer between spouses or ex-spouses in settlement of rights is done without capital gain; the 365-day rule does not apply if the spouses have lived apart for at least 90 days. Timeline: agreement on the house in the separation agreement or judgment (the broker can appraise before), listing when both sign the brokerage contract (both owners must sign), sale in 30 to 60 days in a balanced market, deed 30 to 60 days later; four to six months in total.
Leaving the house empty or poorly maintained during the conflict; refusing a reasonable offer so as not to "give in"; pricing on the municipal assessment rather than closed sales; forgetting to have the departing spouse released from the mortgage; and selling at the most emotional moment rather than the best moment in the market. A neutral broker, mandated by both, reports to both in writing.
No; selling, buying out the share or keeping it in co-ownership are three options. The buyout requires qualifying alone for the whole loan.
Not between married spouses or civil union partners, nor between ex-de facto spouses who lived together 12 months if the transfer happens within 12 months of the breakup.
Only in a parental union (common child born or adopted since June 30, 2025) or by the shares on title; otherwise each keeps what is in their name.
Both signatures are needed on the brokerage contract and the deed; failing that, the court can order the sale or the partition of the co-ownership.
The numbers of the sale: the cost of selling, the mortgage penalty and the commission calculator.
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Also available in French: version française de ce guide.
Published September 7, 2026 by the Loaa & Manseur team, the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 according to the official RE/MAX ranking. Tell us about your project.
Équipe no 1 de RE/MAX Platine en 2024 et en 2025, 6e au Québec, 15e au Canada et dans le top 50 mondial au classement officiel RE/MAX. Réponse en moins de 24 heures, sept jours sur sept.