Who is responsible for property taxes on the matrimonial home while exclusive possession is in effect?

The Family Law Act and an exclusive possession order do not automatically assign property tax responsibility. This is typically addressed either in the court order itself, in a temporary financial arrangement, or in negotiations between the parties. In the absence of a specific order or agreement, the legal owner remains liable to the municipality for property taxes.

In practice, the occupying spouse — the one with exclusive possession — typically takes on responsibility for day-to-day carrying costs including property taxes, utilities, and maintenance. This is logical since they are benefiting from living in the property. However, where the occupying spouse cannot afford all the costs, interim support from the other spouse or a formal cost-sharing arrangement may be needed.

If the home is jointly owned and property taxes go unpaid, both owners are potentially at risk because municipal tax arrears can become a lien against the property. It is therefore important to reach a clear agreement about who pays property taxes and other carrying costs during the exclusive possession period, and to put that agreement in writing. Your lawyer can help include cost-allocation terms in any interim consent order or court order.