In Quebec, dividing the home during a separation happens in three stages. First, the actual market value is established with a professional. Next, the net value is calculated: the value minus the mortgage and selling costs. Finally, a choice is made. Either you sell and split the proceeds, or one person buys out the other’s share into a single name. A “fair” division requires two reflexes: starting from a neutral value rather than a listing price, and knowing whether you were married or de facto spouses, as the law differs.
The first question to settle: married or de facto spouses?
This is the most important question. In Quebec, the law treats the two situations differently. Are you married or in a civil union? If so, the family residence is part of the family patrimony. Its net value is shared in equal parts. This applies even if only one name is on the title. The value is shared in cash, without necessarily dividing the property itself.
Are you de facto spouses? The rules are very different. There is no automatic division. In principle, the owner is the person whose name is on the title. If both names appear, you are joint owners “in indivision.” This is often a 50/50 split. A new development has existed since June 30, 2025: the parental union regime. It protects de facto spouses who have a child born after that date.
Two levers are often overlooked. For married couples, there is the declaration of family residence. Registered in the Land Register, it blocks a sale without the consent of both parties. For de facto spouses, “no one is bound to remain in indivision.” If your ex refuses to sell, a court can order the sale. These legal questions are settled with a notary or a lawyer. The broker, meanwhile, establishes the value.
Buying out the other’s share: how it works
Buying out the other’s share means becoming the sole owner. You pay your ex the value of their portion. Generally, the mortgage is refinanced in your name alone. The process involves three steps. One: establish the market value based on comparable sales. Two: calculate the equity, which is the value minus the mortgage. Three: refinance in a single name to release the other party. The most frequent obstacle? You must qualify alone, often with a single income. A free neutral evaluation is the best starting point.
Pitfall #1: Dividing based on net value, not the listing price
To set a buyout price, we look at recent sales on Centris. Suppose similar houses sold for around $400,000. One might think the value to be shared is $400,000. This is a mistake. Those prices included a brokerage commission. The person who keeps the house will have to pay it one day when selling. Therefore, it must be taken into account immediately. The division is then based on the net value. Here is the difference, using illustrative figures. The commission itself remains negotiable.
| Item | Naive calculation (gross) | Fair calculation (net) |
|---|---|---|
| Market value | $400,000 | $400,000 |
| − Future sales commission (~5% + taxes) | — (overlooked) | − $23,000 |
| − Mortgage balance | − $250,000 | − $250,000 |
| = Equity to be shared | $150,000 | $127,000 |
| Each person’s share (÷ 2) | $75,000 | $63,500 |
The difference reaches $11,500. This is what the person buying the share would have overpaid. To dig deeper into the subject, see our article Who pays the broker’s commission in Quebec?
Costs you should never forget
Buying someone out often involves “breaking” the mortgage. It is then reset in a single name. Three costs often fly under the radar. First, the mortgage prepayment penalty. For a fixed rate, it is the higher of three months’ interest or the IRD. For a variable rate, it is generally three months’ interest. Next come the notary fees to modify the titles. Finally, two tax rules. The welcome tax is often exempt between ex-spouses, under certain conditions. And the sale of a principal residence is generally non-taxable. For a plex or a cottage, a portion may be taxable. Confirm this point with an accountant.
Selling or buying out: where to start
Don’t rush to the notary or the bank without figures. Start with an express online evaluation. It provides a neutral basis for discussion, with no obligation. When you are ready, plan a full in-person evaluation. This rigorous document serves as the basis for the agreement. Another useful path: family mediation. In Quebec, couples with a dependent child are entitled to subsidized hours. The Ministry of Justice pays for them. It is a good way to avoid court.
David Tardif’s Opinion
In a separation, the worst enemy of a fair division is ambiguity. As long as the true net value is unknown, everyone imagines a figure that suits them. My role as a broker is to provide a neutral figure. I rely on actual comparable sales and my data, the Tardif Index. Evaluate online. Take the penalty and fees into account. And leave the legal questions to a notary or a lawyer. Between a married couple and de facto spouses, it’s not the same game.
FAQ
Is the house always divided 50/50 in Quebec?
Not automatically. A married couple or one in a civil union shares the net value of the family residence in equal parts. This applies even if only one name is on the title. For de facto spouses, there is no automatic division. The owner is the person whose name is on the deed.
Why divide based on net value and not the listing price?
Because the listing price ignores selling costs: commission, notary, penalty. On a $400,000 house, forgetting a commission of approximately $23,000 distorts the division. The gap can exceed $10,000, to the detriment of one person.
Do you have to pay the welcome tax between ex-spouses?
Often no. Transfers between ex-spouses are frequently exempt. Married couples must generally transfer before the divorce judgment. De facto spouses must have cohabited for at least 12 months. The transfer must take place within 12 months following the separation.
Is the sale of the house during separation taxable?
The sale of a principal residence is generally non-taxable. The principal residence exemption applies if it is properly designated. For a plex or a cottage, a portion may be taxable. Consult an accountant.
What is a declaration of family residence?
It is a registration in the Land Register. A married or civil union spouse can place it on the family residence. As long as it is in effect, the other cannot sell or mortgage without consent. It does not apply to de facto spouses.
What should I do if my ex refuses to sell the house?
You are often joint owners in indivision, especially as de facto spouses. However, “no one is bound to remain in indivision.” You can therefore request a division. Failing an agreement, a court can order a sale under judicial control.
Is it better to sell the house or buy out the other’s share?
It depends on your finances and your goals. Selling simplifies everything and turns the house into cash. Buying out offers stability, especially with children. But you must qualify alone for refinancing and absorb the costs.
Before making a decision, request an express evaluation
About the Author — David Tardif
Residential and commercial real estate broker (OACIQ, license E2815), founder of Endurance Real Estate Group by Tardif and creator of the Tardif Index. Over 20 years of experience, #1 award-winning team in Canada (Royal LePage 2024-2025), 375+ Google reviews 4.9/5. Learn more about David. Note: This article is for informational purposes and does not replace legal or tax advice.