Transferring Property After a Marriage or Common-Law Breakdown

When a marital home is transferred between separating spouses as part of a separation agreement or court order, most provinces exempt that specific transfer from land transfer tax — a meaningful difference from a normal sale, though exact exemption rules and required documentation vary by province.

The mortgage is a separate issue from the property title. If one spouse is keeping the home, they generally need to formally refinance or have the lender approve their assumption of the full mortgage in their name alone — which requires qualifying independently under current underwriting, at current rates, not simply inheriting the original terms.

This matters practically: someone who could comfortably afford a home on two incomes may not qualify to keep it solo on one. Confirming you can actually refinance or assume the mortgage independently — before agreeing to keep the home in a separation agreement — avoids a difficult surprise after the fact.

Equalization payments (dividing the value built up during the relationship) and the mechanics of how a home factors into that calculation vary by province and situation — this is genuinely family-lawyer territory, not something to work out informally alongside the mortgage logistics.