What happens if my spouse sells our matrimonial home prior to separation?
The matrimonial home receives special protection in Ontario. A spouse generally may not sell,
mortgage, or encumber an interest in a matrimonial home without the other spouse’s written
consent or a court order, even if the home is registered in only one spouse’s name.[^7] If a
spouse disposes of the matrimonial home without the required consent, the court may be able to
set aside the transaction, subject to protections for a good-faith purchaser who did not know the
property was a matrimonial home.
If the home has already been sold, the analysis may include:
whether the non-titled spouse consented;
where the sale proceeds went;
whether the proceeds remain traceable;
whether the sale was for fair market value;
whether the purchaser was at arm’s length;
whether the transaction should be attacked or set aside;
whether a preservation order should be sought over the proceeds; and
whether the sale affects equalization.
