Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
In Ontario, a married spouse cannot sell the matrimonial home without the other’s consent, a separation agreement or a court order, and both have an equal right to live there. The home’s full value is shared through equalization. Common-law partners follow title instead. In 2027, couples usually sell and split, or one buys the other out.
This guide is for separating couples in Toronto and the GTA who own a home together, or who live in a home owned by one of them, and need to decide what happens to it in 2027. You will get the Ontario rules that control the sale, the difference between married and common-law couples, current price data, the tax points, and a practical order of steps. It is general information, so each of you should also get your own family lawyer.
Who keeps the house in a divorce in Ontario?
Nobody keeps it automatically. In Ontario the house usually ends up one of three ways: it is sold and the money divided, one spouse buys the other out, or one spouse stays for a set time under a separation agreement or court order before a later sale or buyout.
For married couples, the Family Law Act (FLA) treats the family home, called the matrimonial home, differently from other property. Section 18 defines it as property that a spouse has an interest in and that the couple ordinarily lived in as their family residence at the time of separation. Section 19 says both spouses have an equal right to possession of it, even if only one name is on title. A court can give one spouse exclusive possession for a period under section 24, for example where children need to stay in their school.
Can my spouse sell the house without my consent in Ontario?
No, not if you are married and it is the matrimonial home. Section 21 of the FLA says a spouse cannot sell or mortgage an interest in a matrimonial home unless one of these applies:
- the other spouse joins in or consents to the deal;
- the other spouse has released their rights in a separation agreement;
- a court order authorizes it; or
- a different property has been registered by both spouses as the matrimonial home.
A sale made without consent can be set aside by a court, unless the buyer paid value in good faith without notice that it was a matrimonial home. If one spouse refuses to sign for no good reason, section 23 lets a court authorize the sale. Where both spouses are on title and cannot agree at all, Ontario’s Partition Act allows a co-owner to ask the court to order the property partitioned or sold.
How is the matrimonial home divided in Ontario?
Married spouses do not simply split each asset. They go through equalization of net family property under section 5 of the FLA. Each spouse adds up what they owned on the valuation date (usually the separation date), subtracts debts and what they owned on the wedding day, and the spouse with the larger figure pays half the difference to the other.
The matrimonial home has two special rules. Ontario says you must share its full value even if one of you owned it before the marriage, or received it as a gift or inheritance. In other words, unlike most pre-marriage property, the home’s wedding-day value is not deducted, and an inherited home is not excluded, unless a marriage contract says otherwise.
Time limits matter. A court application for equalization must be started within six years of separation or two years after the divorce, whichever comes first (FLA s. 7(3)).
Are common-law couples treated the same when they split?
No. The FLA’s property and matrimonial home rules apply to married spouses. Ontario says common-law couples are not legally required to split property acquired while they lived together. In practice, what matters is whose name is on title and how it is held.
- If you own as joint tenants or tenants in common, each owner has a share, and a co-owner can ask a court to order a sale under the Partition Act if you cannot agree.
- If only your partner is on title, you may still have a claim if you contributed to the home, but you may need a court to recover it.
My guide to joint tenancy vs tenants in common explains how title affects your share.
Should we sell the house or should one of us buy the other out?
| Option | How it works | Main costs and risks |
|---|---|---|
| Sell on the open market | Both sign the listing and the sale; net proceeds go to the lawyers to divide | Commission, legal fees, mortgage prepayment charge; price is whatever the 2027 market pays |
| Buyout by one spouse | One spouse pays the other for their share and takes over the home and mortgage | The buyer must qualify alone; an appraisal is needed to set the price |
| Delayed sale | One spouse stays for an agreed period, then the home is sold or bought out | Who pays the mortgage, tax and repairs in the meantime; prices can move either way |
Source: Family Law Act, R.S.O. 1990, c. F.3, ss. 19, 21, 23 and 24; Ontario Ministry of Finance, Land Transfer Tax Bulletin LTT 1-2012.
Can I afford to buy out my spouse?
The spouse keeping the home must qualify for the mortgage on their own income. A federally regulated lender must test an uninsured mortgage at the greater of the contract rate plus 2% or 5.25%, under OSFI’s minimum qualifying rate. With the Bank of Canada’s policy rate raised to 2.50% in October 2026, get a written pre-approval before you agree to a buyout price.
Is there land transfer tax on a buyout between spouses?
Often not. Ontario’s Ministry of Finance says a transfer between spouses or former spouses is exempt from Ontario land transfer tax where the only payment is taking over a registered mortgage, where it follows a written separation agreement, or where it follows a court order. For this exemption, “spouse” uses the wider FLA support definition, which includes common-law partners who lived together for three years or who have a child together. Your lawyer will confirm the details, including the Toronto municipal tax inside the city.
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What is our house worth in 2027?
Values have come down since 2024 in most of the GTA. That matters because the value used for equalization is fixed at the valuation date, while the actual sale may happen months later at a different price.
| Detached homes | Median 2024 | Median 2025 | Median 2026 | Change vs 2025 |
|---|---|---|---|---|
| Mississauga | $1,371,085 | $1,300,000 | $1,225,000 | -5.8% |
| Brampton | $1,127,250 | $1,042,750 | $950,000 | -8.9% |
| Vaughan | $1,590,000 | $1,490,000 | $1,415,000 | -5.0% |
| Markham | $1,650,000 | $1,518,000 | $1,420,000 | -6.5% |
| Oakville | $1,763,000 | $1,675,000 | $1,625,000 | -3.0% |
| Toronto W08 (Etobicoke) | $1,590,000 | $1,670,000 | $1,540,000 | -7.8% |
| Toronto E04 (Scarborough) | $1,060,000 | $955,000 | $870,000 | -8.9% |
| Pickering | $1,190,000 | $1,130,000 | $1,039,999 | -8.0% |
Source: TRREB MLS data via REALM, detached homes, January–October 2026 vs the same periods of 2025 and 2024. Municipal and TRREB district medians, not neighbourhood figures.
For the most recent month, TRREB’s October 2026 Market Watch put the City of Toronto’s detached median at $1,260,000, with sellers getting 97% of asking on average. Across all home types in the GTA, the MLS Home Price Index composite benchmark was down 4.3% from a year earlier.
In a falling market, the spouse who keeps the house at a separation-date value may later find it is worth less, and the spouse who waits for a sale may receive less than expected. Decide in writing, with your lawyers, how a change in value between separation and sale will be handled. Do not assume the law sorts it out for you.
How does selling a house during a divorce actually work?
A separation sale goes best when the decisions are made once, in writing, before the house is listed.
- Agree on the agent and the list price. Both owners sign the listing, and a married spouse who is not on title must still consent to the sale itself. Many couples ask for a written price opinion or an appraisal so neither side feels pushed.
- Agree on how offers are handled. Who reviews them, how quickly you will respond, and the lowest price you will both accept.
- Agree on showings and the home’s condition. If one spouse still lives there, set showing times and who pays for small repairs and cleaning.
- Agree on carrying costs. Decide who pays the mortgage, property tax, insurance and utilities until closing.
- Agree on the money. You can direct that the net proceeds stay in a lawyer’s trust account until the division is settled or paid out by a set formula.
Two of my existing guides go deeper on the sale itself: selling the house in a separation and what the law requires when separating spouses sell.
Do we pay tax when we sell the family home after separating?
Usually there is no income tax on the gain if the home was your principal residence for every year you owned it, but you must still report the sale. The Canada Revenue Agency says the exemption is allowed only if you report the sale and designation on your return (Schedule 3 and Form T2091). A family can designate only one home per year, but a spouse is not counted as family for a year if you were separated for the whole year under a court order or written agreement. That can matter if one of you buys another home before the old one sells.
Sellers do not pay land transfer tax. Your selling costs are commission, legal fees and any mortgage prepayment charge. My guides on seller closing costs in 2027 and how lenders calculate prepayment penalties show how to estimate them.
Should we sign the separation agreement before selling the house?
Ideally, yes, or at least agree in writing on the sale terms before you list. A signed agreement (or a written interim agreement) on price, timing and how proceeds are held keeps the sale from stalling halfway. If you cannot agree, the court tools above exist, but they add time and cost.
The separations I have seen go smoothly treat the house as a joint business decision: one agent both trust, one written plan, and a price based on evidence. I give both spouses the same information at the same time, and I do not take sides on the family law issues. That is your lawyers’ job. In a 2027 market where buyers have choice, a well-prepared listing at a realistic price usually beats a tense, drawn-out one.
What to do next
- Each spouse should speak with their own family lawyer about equalization, possession and deadlines.
- Get your mortgage statement and ask the lender for a payout figure and penalty estimate.
- Get an independent price opinion or appraisal so you both start from the same number.
- If one of you wants to keep the house, get a written mortgage pre-approval before agreeing on a buyout.
- Put the sale terms in writing, then list. I can help either way, anywhere in Toronto or the GTA.
Need help with this? Talk to me.
I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].
Frequently asked questions
Who gets the house in a divorce in Ontario?
No one keeps the house automatically in an Ontario divorce. Married spouses both have an equal right to live in the matrimonial home, whoever is on title. In 2027, couples usually sell and divide the proceeds, have one spouse buy out the other, or let one spouse stay for a set period under a separation agreement or court order.
Can my spouse sell our house without my permission in Ontario?
No. Under section 21 of Ontario’s Family Law Act, a married spouse cannot sell or mortgage the matrimonial home without the other spouse’s consent, a release in a separation agreement, or a court order. A sale made without consent can be set aside unless the buyer acted in good faith without notice. A court can authorize a sale if consent is unreasonably withheld.
Do you split the house 50/50 in a divorce in Ontario?
Not exactly. Ontario divides value through equalization of net family property, not by splitting each asset. The matrimonial home is special: its full value is shared even if one spouse owned it before the marriage or inherited it. If both spouses are on title, the sale proceeds are split by ownership, then equalization adjusts the overall result.
What happens to the house when a common-law couple splits in Ontario?
Common-law partners in Ontario do not get the Family Law Act’s matrimonial home or equalization rights. The house is divided according to title. Joint owners can agree to sell or buy out, or one can ask a court to order a sale under the Partition Act. A partner not on title may need to claim for contributions in court.
Do I pay land transfer tax if I buy out my spouse in Ontario?
Usually not. Ontario exempts transfers between spouses or former spouses from land transfer tax when the only payment is assuming the mortgage, or when the transfer follows a written separation agreement or court order. The exemption uses a definition of spouse that includes many common-law partners. In Toronto, ask your lawyer to confirm the municipal tax too.
Is there capital gains tax when you sell the matrimonial home in Ontario?
Usually no, if the home was your principal residence for every year you owned it. You must still report the sale on Schedule 3 and Form T2091 for the year you sell. A spouse is not counted in your family for designation purposes in a year you were separated all year under a court order or written agreement.
How long do I have to claim my share of the house after separation in Ontario?
For married spouses, an equalization claim must be started within six years after separation or two years after the divorce, whichever comes first, under section 7 of Ontario’s Family Law Act. Common-law partners’ property claims follow different rules. Speak with a family lawyer early in 2027 rather than waiting until the house sells.
Should we sell the house before or after the divorce?
Either can work in Ontario, but agree on the sale terms in writing first. A separation agreement, or at least a written interim agreement on price, timing and where the proceeds are held, stops the sale from stalling. Many couples sell before the divorce is final and hold net proceeds in a lawyer’s trust account until the division is settled.
What is my house worth if we are separating in 2027?
Get a written price opinion or appraisal, because GTA values have moved. TRREB data via REALM shows detached medians for January to October 2026 down 5.8% in Mississauga, 8.9% in Brampton and 6.5% in Markham from 2025. Agree in writing how any change in value between separation and sale will be shared.
Sources
- Family Law Act, R.S.O. 1990, c. F.3 (e-Laws)
- Dividing property when a marriage or common law relationship ends (Government of Ontario)
- Partition Act, R.S.O. 1990, c. P.4 (e-Laws)
- Land Transfer Tax: Transfers of Land Between Spouses (Ontario Ministry of Finance)
- CRA: Principal residence and other real estate
- OSFI: Minimum qualifying rate for uninsured mortgages
- TRREB Market Watch, October 2026
- Bank of Canada raises the policy rate to 2½% (October 28, 2026)
Related reading
- Seller Closing Costs in Ontario for 2027: Every Fee Before You Get Paid
- How to Sell a House in Toronto, Step by Step (2027)
- Closing Costs on a New Build in Ontario: What Builders Add
- How Much Is My House Worth in Caledon? (2027)
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume.
Reach me at [email protected] or 833-330-1925, or book a call.