Should You Sell the Family Home During Divorce or Keep It?

Divorce brings many emotional and financial decisions — and one of the biggest is what to do with the family home. Should you sell and move on, or try to keep the property? There is no one-size-fits-all answer. The right choice depends on your finances, your children, and your long-term goals.

If you’re navigating separation in BC, here’s what you need to consider before deciding.

First: Understand Your Legal Position

In most cases, the family home is considered shared family property, even if only one spouse is on title. This means one person usually cannot sell the home without the other’s written consent.

If spouses cannot agree, the court can order the property to be sold if it is considered “necessary or expedient.”

Bottom line: Real estate decisions during divorce should always be coordinated with your lawyer.

Option 1: Selling the Family Home

Many couples choose to sell because it creates a clean financial break.

Pros of Selling

1. Clean financial separation
Selling converts the home into cash that can be divided, which often simplifies property division and settlement discussions.

2. Access to equity
If the mortgage is too expensive or both parties need funds for new housing, selling can free up much-needed cash.

3. Reduced ongoing conflict
Maintaining a jointly owned home after separation can prolong financial ties and disagreements.

4. Potential tax advantages
In many BC cases, the principal residence exemption means no capital gains tax is triggered on the family home sale.

Cons of Selling

1. Emotional impact
Letting go of the family home can be difficult, especially when children are involved.

2. Timing pressure
Selling during a stressful separation can increase conflict between spouses.

3. Market risk
If the market is soft, you may not achieve the price you hoped for.

Option 2: Keeping the Family Home

Sometimes one spouse wants to remain in the home — often to maintain stability for children.

Pros of Keeping

1. Stability for children
Remaining in the same neighbourhood and school can reduce disruption during an already difficult transition.

2. Emotional continuity
For many families, staying put provides comfort and familiarity.

3. Potential long-term appreciation
If the market rises, keeping the home may build additional equity.

Cons of Keeping

1. Affordability challenges
The spouse staying must usually qualify to carry the mortgage alone and buy out the other party’s equity.

2. Refinancing hurdles
A buyout typically requires:

• Professional appraisal

• Mortgage qualification on one income

• Removal of the departing spouse from title and mortgage

3. Ongoing financial ties
If both spouses remain on the mortgage, the non-resident spouse can still be liable if payments are missed.

Option 3: Delayed Sale (A Middle Ground)

Some families choose to keep the home temporarily and sell later — for example, after children finish the school year.

When this works well:

• Young children need stability

• Market conditions are weak

• One spouse cannot yet refinance

Watch out for:

• Continued joint expenses

• Disagreements over maintenance

• Market fluctuations while you wait

Key Questions to Ask Yourself

Before deciding, consider:

• Can either of us realistically afford the home alone?

• How important is stability for the children right now?

• What does the current local market look like?

• Do we need equity from the home to move forward financially?

• Are we able to cooperate during the listing and sale process?

Your answers will often make the right path clearer.

The Realtor’s Role During Divorce

Selling a home during separation requires more than just listing on MLS. You need:

• Careful coordination with lawyers

• Neutral, professional communication

• Strategic pricing and timing

• Sensitivity to emotional dynamics

Working with a REALTOR® experienced in divorce situations can help reduce stress and protect your financial outcome.

Final Thoughts

There is no universally “right” answer to whether you should sell or keep the family home during divorce. For some families, selling provides a clean and healthy fresh start. For others — especially with young children — keeping the home temporarily may make sense.

What matters most is making a decision that is financially sustainable and legally sound.

Need guidance on your next move?

If you’re navigating separation in Greater Vancouver or Burnaby, Victoria Fung can help you evaluate your options with clarity and care. Reach out anytime for a confidential conversation about your situation.