When I ask clients 'What is the best investment you have ever made?', home owners always answer, 'my home'. Depending on where and when you bought into the housing market, real estate in Vancouver has doubled, tripled and even quadrupled over the last 12 years.
Real estate is more than just an investment - it is a home for our family. As the old adage says 'home is where the heart is'. It holds memories, creates a place for families to gather, a place of comfort, familiarity and community. All this brings security and stability to our world. During divorce this loss weighs heavy on families.
Family law equalizes assets and cash flow between separating couples. Half the house, half the cash flow. During the divorce process, the most pressing questions for many are "Can I afford to buy a home?" and "Can I keep the family home?"
Most families cannot afford to own two homes in Vancouver following a divorce. To buy out your spouse's portion of the house is an expensive proposition. With the average home in Metro Vancouver valued at approximately $900,000, that would be $450,000 or additional monthly mortgage payments of over $2000.
So what are the options when half of the proceeds are not enough to buy an alternative home and the cost of moving is very expensive? There is no easy answer, but here are some important considerations:
Your circumstances will change over time and there are many other living options to consider like:
Through Collaborative Divorce you may be able to find more creative solutions based on what is best for your family. Working with divorce financial specialists, divorce coaches, and family lawyers you can identify what is realistic, fair, and will work for your family.