How to Sell a House During a Divorce

How to sell a house during a divorce is one of the most common questions we receive from separating couples in Alberta. Selling your family home during this emotional time requires careful coordination, clear communication, and professional guidance. At Property Sisters, we’ve helped many couples in Airdrie and Cochrane navigate this sensitive process with respect and efficiency.

Understanding Alberta’s Matrimonial Property Laws

In Alberta, matrimonial property is typically divided equally between spouses, regardless of whose name is on the title. The family home is considered a matrimonial asset, and both parties generally have equal claim to the proceeds from its sale. Even if only one spouse is on the mortgage or title, both parties usually have legal rights to the property and must agree to the sale terms.

The Alberta Dower Act and Spousal Consent

Alberta’s Dower Act provides crucial protection for spouses when selling a family home. Under this legislation, if only one spouse’s name appears on the title, the other spouse still has dower rights to the property. This means that even if you’re the sole registered owner, you cannot sell, mortgage, or transfer the family home without your spouse’s written consent through a dower release.

The Dower Act applies to married couples (not common-law partners) and specifically protects the homestead, which is defined as the home where the family ordinarily resides. When selling during divorce, the non-titled spouse must sign a dower consent or release before the sale can complete. This signature is typically handled by your lawyer at closing and is a standard requirement in Alberta real estate transactions.

If a spouse refuses to sign the dower release, the titled spouse cannot proceed with the sale without a court order removing the dower rights. This is why cooperation between both parties is essential when learning how to sell a house during a divorce. At Property Sisters, we ensure both spouses understand these requirements early in the process to avoid delays or complications at closing.

Prenuptial Agreements and Property Division

If you have a prenuptial agreement (also called a marriage contract in Alberta), it may override standard matrimonial property division rules. Prenuptial agreements can specify how the family home will be handled in the event of separation, including who retains ownership, how equity is divided, or whether one spouse has priority to buy out the other.

However, prenuptial agreements must be properly executed to be enforceable in Alberta courts. Both parties must have had independent legal advice, provided full financial disclosure, and signed voluntarily without duress. If your prenuptial agreement addresses the family home, provide a copy to your lawyer and to us at Property Sisters so we understand any special considerations affecting the sale.

Even with a prenuptial agreement, the Dower Act still applies, meaning the non-titled spouse must sign a dower release regardless of what the prenup states about ownership. Your lawyer will review how your prenuptial agreement interacts with dower rights and matrimonial property laws to ensure the sale proceeds correctly.

Alternatives to Selling During Divorce

While many couples choose to sell their family home during divorce, selling isn’t always the only option. Here are alternatives we help clients explore:

Buy Out Your Partner or Sell Your Half

One spouse can buy out the other’s share of the home equity, allowing them to retain the property. This requires mortgage refinancing in the purchasing spouse’s name alone and paying the other spouse their equity portion. At Property Sisters, we provide accurate home valuations to determine fair buyout amounts. The buying spouse must qualify for the mortgage independently and have funds or financing to pay the equity settlement.

Maintain Joint Ownership

Some separating couples choose to maintain joint ownership temporarily, often when children are involved and one parent continues living in the home until the children reach adulthood. This arrangement requires clear legal agreements about mortgage payments, maintenance costs, property taxes, and future sale terms. Both parties remain on the mortgage and title, which can affect credit and future borrowing capacity. We recommend having your lawyer draft a detailed co-ownership agreement outlining all responsibilities.

Placing a Lien on the House

Instead of immediate sale or buyout, one spouse may agree to place a lien on the property securing their share of equity. This allows one spouse to remain in the home while the other spouse’s financial interest is protected through the registered lien. The lien ensures that when the property eventually sells (either voluntarily or upon triggering events specified in the separation agreement), the spouse with the lien receives their entitled portion plus potentially agreed-upon interest. This option requires legal documentation and registration on the property title.

The first step in how to sell a house during a divorce is reaching agreement on key decisions. Both spouses must agree to sell, choose a listing price, select a realtor, and accept an offer. At Property Sisters, we work as neutral professionals who represent both parties’ interests equally. We provide objective market valuations to help eliminate disagreements about pricing and ensure the sale proceeds fairly.

Determining Your Home’s Value

We conduct comprehensive comparative market analyses specific to the Airdrie and Cochrane markets, showing recent sales of similar properties. This factual approach helps remove emotion from pricing decisions. An accurate valuation protects both parties by ensuring you don’t leave money on the table or price too high and delay the sale.

Handling the Mortgage and Equity

Before listing, obtain your current mortgage payoff statement, including any prepayment penalties. Calculate your home equity by subtracting the mortgage balance and estimated selling costs from the expected sale price. This number gets divided according to your separation agreement or court order. We coordinate with your lawyer to ensure proceeds are distributed correctly at closing.

Managing Showings and Preparations

Decide who will remain in the home during the listing period and how showings will be handled. Ideally, both parties should vacate during showings to allow potential buyers to view the property without awkwardness. We help establish clear showing protocols that respect everyone’s privacy and schedules while maximizing buyer interest.

Navigating Offers and Negotiations

When offers arrive, both spouses must agree before acceptance. We present all offers objectively with our professional recommendation, but ultimately both parties must sign off. Having legal representation review offers protects both spouses’ interests. We work with both lawyers to facilitate smooth communication and quick decision-making.

Working With Property Sisters

At Property Sisters, we approach divorce sales with sensitivity, discretion, and professionalism. We understand this is an emotional transition, and we maintain neutrality while advocating for the best possible outcome for both parties. We communicate clearly with both spouses and their legal representatives, keeping everyone informed throughout the process.

We handle all marketing, staging recommendations, showings, and negotiations so you can focus on your family’s transition. Our knowledge of the Airdrie and Cochrane markets ensures your home sells quickly at fair market value, allowing both parties to move forward with their lives.

Timeline Considerations

Court orders often specify deadlines for selling the matrimonial home. We create strategic marketing plans that respect these timelines while achieving optimal results. If you’re working within court-ordered timeframes, let us know immediately so we can prioritize your sale appropriately.

Protecting Your Interests

Keep detailed records of all property-related expenses, improvements, and mortgage payments during separation. These may affect final equity distribution. Work with your lawyer to ensure the separation agreement clearly outlines how sale proceeds will be divided and who’s responsible for costs until closing.

How to sell a house during a divorce requires patience, communication, and professional support. At Property Sisters, we’re here to guide you through this transition with compassion and expertise, ensuring a fair outcome for everyone involved.