Selling the House Following the Divorce

December 27, 2009

Selling the House Shortly Following the Divorce

This used to be a great strategy for people getting divorce who were at 55 or above. A married couple used to be entitled to a one-time exclusion of capital gains to $125,000 at age 55, whereas single people were each entitled to exclude gain of $125,000. A lot of people in this age range waited until shortly after the divorce to dispose of the house. As the exclusion has been eliminated and the Act has also removed marriage penalties, the benefits of this strategy have, for the most part been eliminated.

The downside of waiting until after the divorce is that funds are tied up, and that any repairs to the house must be attended to. Valuation issues need to be considered, and as both parties still hold title, there has to be ongoing cooperation regarding mortgage and tax payments.

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Laddi Dhillon
Sales Representative
dhillonladdi@hotmail.com

RE/MAX Gold Realty Inc.Brokerage
Brokerage
Independently owned and operated

2980 Drew Rd Unit 231
Mississauga, Ontario L4T 0A7


Ph: 905-598-0725
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