Choosing a Home Appraiser for Separation in Ontario

When a couple separates and owns a home, the first big disagreement is often about what it is worth. One spouse thinks the market is up and wants to keep the house. The other believes it is worth less, or more. A professional appraisal can settle the argument, but only if both people trust it.

This article explains why the value matters in Ontario, the usual choices between a joint appraisal and separate ones, and what to think about before you hire anyone. Dates and cost-sharing depend on your circumstances, so use this as a guide for questions to ask a lawyer.

Why the home's value matters

Married spouses generally split property acquired during the marriage equally when it ends, and the money owed to the spouse with the smaller share is called an equalization payment. The family home must be divided equally unless the spouses agree to a different split. A higher or lower value for the home moves the numbers for both.

There is a second reason. If one spouse owned the home on the date of marriage, its value then may or may not be deductible. If the home a spouse brought into the marriage is still the matrimonial home at separation, its marriage-date value cannot be deducted; if it was sold before separation, the value is deductible. A marriage contract can change this. In that situation you may need a value for more than one date.

If the home is simply sold, a half-owner is entitled to one-half of the net sale proceeds, less any unpaid share of upkeep costs. A sale price then answers the value question, though some spouses prefer to know the value before deciding whether one of them will buy the other out.

Joint appraisal or separate appraisals

There is no single rule in the material for this article on which approach you must follow. Many spouses agree on a joint appraiser to keep costs down. If you cannot agree, a lawyer can help you decide how to proceed.

Which valuation dates to request

Appraisers can value a property as of a particular date, and the date matters a great deal when the market moves. Which dates you need depends on your facts: whether you owned the home before the marriage, whether it was gifted or inherited, and whether it is still the matrimonial home. A gifted or inherited family home does not count as excluded property.

Because the right dates depend on your situation, ask your lawyer which dates to put in the appraiser's instructions before you hire anyone. Getting this wrong can mean paying for a second report.

The Court of Appeal has also held that the same property cannot be both an excluded item and a marriage-date deduction, which would be double counting. Your lawyer will want to apply each item once.

Who pays and how to choose

Who pays for an appraisal depends on what you agree. How the cost of a joint report is shared depends on your situation, so it is worth confirming with a lawyer. Put the arrangement in writing to avoid disagreement later.

• Confirm the appraiser's credentials and experience with residential property in your area.
• Ask for a written quote and what the report will include.
• Agree in writing who hires the appraiser and who pays.
• Share the same documents and access arrangements with the appraiser.
• Ask your lawyer which valuation dates to request before instructing the appraiser.
• Confirm whether the report can be shared with both spouses and their lawyers.

What to do next

Start by talking to your spouse about whether a joint appraiser is acceptable. Then see a family lawyer about dates and cost-sharing. Keep an eye on the clock: the time limit for married spouses' property claims is six years from separation or two years from the day the divorce is final, whichever comes first.

If one of you will keep the home, remember the legal steps at the land registry. A transfer or mortgage of a matrimonial home requires a spousal statement, such as that the spouse has released rights by separation agreement, or a court order. Tax can also be a factor in how the home is transferred or sold, so a lawyer or accountant can help you plan.

Frequently asked questions