The family residence is the primary home where you lived together during your relationship. It can be a house, condo, townhouse, mobile home, or similar property.

For most families, the family residence is the largest and most important asset to address during a separation. It often carries financial weight, emotional attachment, and practical concerns, especially when children are involved. Understanding how the family residence is treated under the Family Law Act helps you make informed and realistic decisions.

The starting point is the fair market value of the property.

If one person is considering keeping the home, it is usually best to obtain a professional appraisal so both spouses can rely on an objective value. Government assessments are not typically used to determine fair market value. However, if you both genuinely agree on a value, you may choose to use that figure.

Next, you must identify any debts registered on title, such as a mortgage or a home equity line of credit. These debts should be listed with the family residence, rather than as general debt, because they are legally tied to the property.

When you subtract the registered debt from the fair market value, you are left with the equity in the home. It is the equity that is divided between spouses. Divii does this math for you in the Property Schedule.

As with other family property, the default rule is that the value of the family residence is divided equally between spouses.

If one spouse owned the home before the relationship began, the analysis changes slightly.

The equity that existed at the start of the relationship is usually excluded property. That excluded amount remains with the spouse who owned the home before you began living together.

Any increase in equity during the relationship is considered family property and is divided equally. This approach recognizes both the initial ownership of the property and the shared economic partnership during the relationship.

Another common exclusion related to the family residence is when one spouse receives a gift or inheritance that is put into the home, such as paying down the mortgage or funding a major renovation. If the gift or inheritance was given to only one spouse and can be clearly traced into the property, that contribution may be excluded from division.

Once the value and any exclusions are understood, the next step is deciding what will happen to the home itself.

There are three common options:

• One spouse keeps the home and buys out the other
• The home is sold and the proceeds are divided
• The spouses continue to co-own the property for a period of time

The right option depends on affordability, timing, and family needs.

If one spouse wants to keep the family residence, the first step is confirming the fair market value, usually through an appraisal.

From there, the spouse keeping the home should speak with a mortgage broker or lender to determine whether they qualify to take over the existing mortgage and pay the buyout amount.

It is important to look at the family residence as part of the overall property division, not in isolation. Running a full property distribution in Divii helps calculate a fair buyout amount while accounting for all assets and debts.

Lenders will also want to understand child support and spousal support obligations, since these affect available income. Divii allows you to generate a Summary and Property Schedule that can be shared with your mortgage broker to support this process.

Many couples choose to sell the family residence and divide the proceeds.

In this scenario, you do not usually need a formal appraisal. You can use a reasonable estimated value when working through Divii. The actual sale price will ultimately determine the fair market value.

Your Separation Agreement will typically deal with how the proceeds of sale are divided, rather than fixing a specific dollar value in advance.

Some families choose to continue co-owning the family residence for a period of time, particularly when children are involved.

In these arrangements, one spouse usually lives in the home and pays the day to day expenses, while major costs such as property taxes and insurance are shared. During this time, both spouses continue to share in any increase in the value of the property.

It is important to clearly define how long co-ownership will last and how either spouse can trigger a future buyout or sale. Divii guides you through these questions so the arrangement is clearly documented and enforceable in your Separation Agreement.