Net Sale Proceeds of the Home During Separation
When spouses separate, they will need to divide their assets and debts – this is called “net family property”. If there is a matrimonial or family home in the net family property, and it has to be sold or refinanced, the net sale proceeds or refinancing funds are only one part of the division of all the net family property.
If the spouses decide to sell the home, the real estate lawyer may hold the net sale proceeds until the finalization of all the family law issues. This will ensure that any other amounts payable by one side to the other (eg. credit for household contents, support payments, etc.) will be included in the calculation of a final equalization pay out amount.
In order to ensure that there is not an undue delay in releasing the net sale proceeds, you should make sure that the net family property is divided in accordance with the Family Law Act. A family lawyer can help you negotiate and prepare necessary documentation for the division of property.