ARCTIC OBITER

PUBLIC INTEREST
HOME BUYING AFTER A MARRIAGE ENDS:
TRICKY BUT ACHIEVABLE
Purchasing property after a marriage ends can come
with a complex set of issues, whether you are doing so
on your own or with a new partner. Ray Leclair, an
experienced real estate lawyer and Vice President,
Public Affairs (Acting) at LAWPRO, suggests that
homebuyers with previous marriages consider these
issues when buying property the next time around:
HAVE YOU FINALIZED YOUR DIVORCE OR
SEPARATION AGREEMENT?
If you are still legally married, there could be
obligations which have not yet been determined and
could affect your mortgage eligibility and availability
of funds for a house purchase.
ARE YOU BUYING A HOME TO LIVE IN WITH A
NEW PARTNER?
Will you and your partner be sharing the cost? The
answer could affect your rights in the property.
Monies invested into a matrimonial home may have to
be equally divided when the marriage breaks up even
if both parties did not contribute equally.
HAVE YOU CONSIDERED A MARRIAGE
CONTRACT OR COHABITATION AGREEMENT?
New issues can arise when purchasing property with a
new partner. Even if you do not plan to marry your
new partner, you should consider consulting a lawyer
about a cohabitation agreement. This would protect
your interests should the relationship end, even
unexpectedly if by death, and address issues around
unequal financial contributions to the new home.
DO YOU HAVE CHILDREN FROM A PREVIOUS
MARRIAGE? DOES YOUR PARTNER?
In the event of your death, would your partner inherit
full ownership of the home or would your children?
Have you talked about whose family would inherit the
property when you both pass away?
DO YOU HAVE FINANCIAL OBLIGATIONS
FROM YOUR PREVIOUS MARRIAGE?
Are you responsible for spousal or child support? Do
you still have joint lines of credit with a past spouse?
Is your name still on the mortgage for your former
marital home? These are all questions the bank will
consider as you apply for a new mortgage. Your
previous marital financial obligations may impact
your ability to buy the next home of your dreams.
ARE ALL YOUR AGREEMENTS CONSISTENT?
As you enter into new agreements, you should ensure
that your estate planning documents are consistent to
avoid conflict and possible litigation, including your
property agreements, orders, wills, insurance policies
and powers of attorney.
A buyer who has been in a previous marriage can
have some tricky issues to navigate and every
situation is unique. Working with an experienced real
estate lawyer will help ensure that everything goes
smoothly.
■ Published as part of LawPRO’s Public Awareness campaign.
Visit www.lawpro.ca for more information.
ARCTIC OBITER MARCH/APRIL 2013 ■ 17