What Does a ‘Buy-out’ in Nova Scotia Mean from a Practically Speaking?

So, you and your spouse (legal or common law) are separating and have agreed that one of you will “buy out” the other from the home you share ownership of in Nova Scotia.  What does that mean practically speaking?

Each Spouse is Presumptively Entitled to 50% Equity in a Jointly Owned Home

Generally speaking each party is presumptively entitled to 50% of the equity in a jointly owned home. In order to switch it to a single spouse there are several steps.

Getting a value on the property, and seeking out a mortgage professional are good places to start.

You would be splitting the “equity” in the property – which is the market value, less any outstanding mortgage and an estimated 5% for real estate commission.

The spouse keeping the property will make a payment to the spouse who is signing over their interest for that 50% value.

The formal change in title at the Registry of Deeds must be done by a qualified lawyer.

A Formal Separation Agreement is Advisable

It is wise to get this arrangement put into a formal separation agreement before actually moving any assets, or signing deeds. In fact, most lenders will require the formal agreement in order to complete a mortgage approval.

By: Briana C. O’Grady - Lawyer

Have Questions For Us?:

If you have any questions about spousal buyouts you can call us at (902) 826-3070 or email us at info@highlanderlaw.ca to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $500+HST where you have the opportunity to explain your situation to a lawyer and get basic advice before deciding whether or not you'd like to retain us.

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