Can I buy out my spouse's interest in our matrimonial home as part of our separation?

Yes, one of the most common ways to resolve the matrimonial home is for one spouse to buy out the other. This involves determining the current market value of the property, calculating each spouse's share after accounting for equalization and any outstanding mortgage, and then paying the other spouse for their equity.

The buyout amount and process should be documented in a separation agreement. The spouse keeping the home also typically needs to refinance the mortgage in their own name to release the other spouse from that obligation. Lenders will require qualification based on the buying spouse's individual income and credit.

There are also tax considerations. Under federal income tax rules, property transfers between spouses on relationship breakdown can often occur without an immediate capital gains tax event if structured correctly under the Income Tax Act's rollover provisions. However, tax advice should be obtained to ensure the transfer is structured appropriately. A lawyer can help draft the separation agreement and coordinate the transfer of title at the land registry.