How do I calculate a matrimonial home buyout in Canada?
Start with the home's current fair market value and subtract the outstanding mortgage to get the equity. In Ontario, both spouses share the matrimonial home's equity equally (50%) regardless of who is on title. The buyout is the departing spouse's share of the equity — normally half. To keep the home, you refinance the existing mortgage plus the buyout amount in your name alone.
Do I have to refinance to buy out my spouse?
Usually yes. To remove your spouse from the mortgage and title, the lender must approve a refinance in your name only, and you must qualify on your own income. If you cannot qualify, options include a spousal loan, a larger share of other assets in exchange, or selling the home.
Is the matrimonial home treated specially in Ontario?
Yes. Under the Family Law Act, the matrimonial home has special status: both spouses have an equal right to possession, and its full value is shared even if one spouse owned it before marriage. Neither spouse can sell or mortgage it without the other's consent or a court order.
What if one spouse paid the down payment before marriage?
In Ontario, if the home was the matrimonial home on the separation date, the spouse who owned it usually cannot deduct its value or the down payment. In other provinces and in prenuptial/cohabitation agreements, a separate-property credit for the down payment may apply — enter it in the calculator if it does.