Selling matrimonial home after divorce or separation (or during divorce or separation) can present significant legal challenges. Disputes often arise over key issues such as selecting a real estate agent, determining the listing price, and ensuring that the sale process is fair for both spouses.
Courts play a crucial role in resolving these conflicts, ensuring that both parties’ rights are protected while facilitating a smooth sale.
During divorce selling the matrimonial home can present a deadlock situation, if the spouses cannot agree. For example, one of the most common disputes involves selecting a real estate agent to list the property. The court may intervene in several ways:
1 – Appointing a Specific Agent – In Smith v. Smith, the court selected a particular agent to list the home after evaluating both parties’ arguments and prior agreements (Smith v. Smith, [2021] O.J. No. 1375).
2 – Neutral Third-Party Selection – In Kokaliaris v. Palantzas, the court ordered that if the spouses could not agree, each would choose an agent, and those agents would then appoint a neutral third-party agent to list the home. (Kokaliaris v. Palantzas, [2015] O.J. No. 4587).
3 – Co-Listing Arrangement – In rare cases, the court has required both spouses to use their preferred listing agents, who must then collaborate through their respective brokerages to market and sell the property together. This approach ensures that both parties have representation in the process of selling matrimonial home.
Another major issue is setting a fair and competitive listing price. To prevent disputes, courts typically defer to the professional opinion of the listing agent. For instance, in Switzer v. Switzer, the court ruled that the property must be listed at the price recommended by the real estate agent to ensure a fair market valuation (Switzer v. Switzer, [2021] O.J. No. 4978).
Additionally, in cases where spouses continue to disagree, the court has ordered both parties to accept the price recommended by the listing agent to prevent delays and unnecessary conflicts.
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When one spouse remains in the home during the sale process, the court takes into account their living conditions. If tensions between the parties create an untenable situation, the court may order an expedited sale. In Sokoli v. Sokoli, for example, the court acknowledged the stressful circumstances and ordered the immediate sale of matrimonial home to relieve the burden on both spouses (Sokoli v. Sokoli, [2021] O.J. No. 3072).
In some cases, selling matrimonial home after divorce is necessary to meet equalization payments. Under Section 9(1)(d)(ii) of the Family Law Act, courts have the authority to order the partition and sale of property to ensure financial settlements are met. However, courts exercise caution when making such orders before trial, particularly if the sale could negatively impact a vulnerable spouse or child (Powers of the Court under Section 9 of the Family Law Act (ON)).
Ultimately, in selling the matrimonial home Ontario court’s primary goal is to facilitate a fair and efficient sale while protecting the interests of both parties. By resolving disputes over agent selection, listing price, and sale logistics, the court ensures that the process remains impartial and effective. In many cases, the proceeds from the sale are held in trust until further agreements or court orders dictate their distribution, providing additional security for both spouses.
Navigating the sale of matrimonial home Ontario can be complex, but with legal guidance and court intervention where necessary, the process can move forward in a fair and structured manner.
