Higher interest rates and strained affordability in the Toronto-area housing market are creating thorny issues for married couples going through separation or divorce.
For most couples, the home is their biggest asset, she points out, and the timing of a sale becomes all-important. Some homeowners who purchased at the height of the market during the pandemic, for example, may not be able to sell for the same amount today. Few people have enough cash to contribute to those carrying costs while they are also paying for rent or the mortgage on a new place, she points out.The financial strain is exacerbating existing problems between many couples, she adds.Such scenarios are also leading to an increase in the number of partners wanting to purchase the other’s share of the matrimonial home – especially when the couple has children.
In her own practice, she figures no more than 30 or 40 per cent of couples are able to reach such a deal. But Ms. Chegini cautions that such legal wrangling is often not worthwhile because mounting legal fees will quickly erase any gain that one side makes. In her experience, couples often have trouble letting go of any amount above about $25,000.