Moving On

Moving Big moves often coincide with big life changes. Here’s how one East side resident leveraged the sale of her home as a way to move forward. On

WHEN JULIE WATSON’S MARRIAGE ended after 16 years, she found herself faced with a whole slew of decisions. The most intimidating one was what to do about the couple’s largest asset —their detached home on a quiet cul-de-sac in the Beaches.

“We’d agreed to put the house on the market, but there was so much I wasn’t prepared for,” she says. “I was a stay-at-home mom for most of the marriage and my ex-husband had taken care of all the family finances. There I was on my own, trying to sort out the sale of the house and figure out where I could afford to live.”

Even though the house was in a desirable neighbourhood, Watson, who had just opened a yoga studio, Afterglow, felt like she was in a precarious position financially. “My income was uncertain at that time, and I didn’t know if I would even qualify for a mortgage on a new home,” she says.

While stressful, Watson’s situation isn’t unusual when almost 40 percent of Canadian marriages end in divorce (and that number is expected to climb in a post-Covid world). Agent Cera Dann of the Richards Group routinely counsels clients who are going through a similar process.

“Generally, there are two main options when it comes to the family home,” says Dann. “Either one partner stays in the house and buys out the other partner’s share, or they sell the property and split the proceeds, which they can then use to buy new homes.”

Regardless of whose names are on the title or the mortgage, under Canadian law, both spouses are entitled to half the equity in the matrimonial home. When a couple divorces, what often makes the most sense financially—and in many cases, emotionally—is to put the house on the market and look for a new home where you can start fresh.

“Getting an opinion from a realtor on the value of your home can be useful in knowing what your largest asset is worth and what the landscape is like,” says Dann. “In East Toronto, house sales are generally pretty impressive, and great borrowing rates are available.”

For Watson, entrusting the sale of her home to Dann and The Richards Group team, was her best decision. “The team at The Richards Group were so understanding that I was totally green,” she says. “They were really in tune with my needs, and the whole process felt very seamless and smooth.”

The client care team took care of all the home staging, updating Watson’s sleek modern style with some cozy accents like comfy couches, blankets and pillows for a homier and more accessible feel. “I left things entirely in their hands, and that says a lot for me—I’m a pretty controlling person when it comes to my home decor,” says Watson.

When the house sold within a week, Watson focused on the next hurdle: finding a suitable new home within her budget by the June closing deadline, and in the same school catchment areas for her three children, who were 14, 12 and 8 at the time. “I really wanted the least amount of disruption for the kids, since their lives were already so disrupted,” she says. “I won’t sugarcoat—the divorce was devastating for them.”

Watson began house-hunting even though she and her ex-husband hadn’t solidified their separation agreement yet, which would formalize custody arrangements and the amounts she would be receiving for spousal and child support. Fortunately, Watson’s lender was willing to accept preliminary income numbers to qualify her for a mortgage.

Building up your credit rating as an individual—especially if your spouse was the primary earner—can take some shuffling. “Once you separate, it’s recommended to remove all joint accounts and credit cards, and get one or two credit cards in your own name to build up a credit history,” says Angie Alvarez, mortgage broker with Capital Home Lending. “In some divorce cases where everything was in the other partner’s name, lenders will work with you on a case-bycase basis.”

“No matter what situation you’re in today, if you can provide approximate values for what your support payments will be, you can go through the pre-approval process,” says Alvarez. “Just know that it’s very important to have that signed separation agreement before the close.”

There’s also nothing wrong with renting for a year or two while the dust settles. “Sometimes you want to take a moment to catch your breath,” says Dann. “Speak with your bank on how to keep the money you earn from the sale of your home safe and invested.”

As luck would have it, Watson ended up buying a new house within a block of the old one. “It looked like it needed a lot of work, I didn’t know if I even wanted to live that close,” she says. “But I looked out the window and saw a whole group of kids, aged 2 to 15, all playing together and getting along, and it felt like a sign.”

The move was a bit of a scramble—because she couldn’t move into the new home until August, Watson had to stay with friends and family for two months after the sale closed on the marital home. Still, she’s happy with her new home and the decisions she made. Her younger kids, now 16 and 13, can still hang out with their friends from the neighbourhood, while her eldest, 19, is off to university this year.

“I’d absolutely recommend finding a real estate agent that you like 100 percent,” she says. “I really appreciated the compassionate, nurturing approach that I got from the Richards Group.” With more than a dozen real estate agents on staff, the firm is big enough to represent both you and your ex, if you so choose.

Whatever your situation, professionals you trust are your best source of guidance. “When people go through a divorce, the stress and pressure can be intense,” says Dann. “A lot of our clients have come to appreciate that we can offer them two separate agents to represent and communicate with them throughout the process while we all work towards the ultimate goal of enabling everyone to move forward. Advice from friends and family can help, but you really need a panel of experts in your corner. Your lawyer, realtor, mortgage professional and therapist are there to give you the most accurate information.”

“In a situation that is often overwhelming, our goal is to help you feel empowered.”

Trusted Advice

Cera Dann The Richards Group cera@therichardsgroup.ca

Angie Alvarez Capital Home Lending angie@capitalhomelending.ca