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When Home Is the Last Thing You Want to Lose: Navigating a Spousal Buyout with Heart and Guidance

Carmen Kerr
Family Law Lawyers

At Evolve Family Law, we believe that collaboration with trusted professionals leads to better outcomes for our clients—especially during times of emotional and financial transition. That’s why we’re proud to share this guest post from Carmen Kerr, a seasoned mortgage broker based in Saskatoon who brings both compassion and clarity to the complex process of spousal buyouts.

Carmen has helped countless families and individuals across Saskatchewan navigate the delicate balance between financial fairness and emotional stability when it comes to the family home. Her insight is grounded in experience, empathy, and a genuine commitment to helping individuals move forward with confidence.

Thank you, Carmen, for sharing your knowledge and for being a valuable resource to families during some of life’s most difficult moments.

My name is Carmen Kerr, and I’m a mortgage professional based in Saskatoon, proudly serving clients across all of Saskatchewan. Over the years, I’ve helped many individuals and families through some of life’s most difficult transitions—none more personal than a separation or divorce.

These moments don’t just divide assets; they divide routines, memories, and futures. And when it comes to the family home—the place where children were raised, holidays were celebrated, and life was shared—the thought of selling it can feel like yet another heartbreaking loss in an already painful time.

But here’s the good news: selling isn’t your only option.

Through a Spousal Buyout Program, it may be possible for one partner to keep the home while fairly compensating the other for their share of the equity—up to 95% of the home’s current value. This option can offer a sense of stability in a time of uncertainty, allowing one spouse—often the one caring for children—to remain in the home, maintain routine, and minimize disruption.

As someone who specializes in spousal buyouts, I understand both the emotional weight and financial complexity involved. You don’t have to figure this out alone. I’m here to guide you through your options with care, clarity, and a plan that fits your life.

What Is a Spousal Buyout?

A spousal buyout allows one partner to refinance the home in their name, buy out the equity owed to the other spouse, and potentially consolidate joint debts in the process. For example:

Let’s say your home is worth $500,000 and there’s a mortgage of $200,000 remaining. That leaves $300,000 in equity. If you’re splitting that equity evenly, one spouse would need to access $150,000 to buy the other out. With a spousal buyout mortgage, you may be able to refinance up to 95% of the home’s value to make that happen.

But this isn’t just about numbers—it’s about preserving a sense of normalcy when everything feels uncertain.

Your partner may be battling brain fog, insomnia, night sweats, or low libido. She might feel like a stranger to herself. And yes, that can have real consequences on your connection and intimacy.

Requirements to Qualify

There are some specific requirements involved in the process:

  • A legal Separation Agreement is required, clearly outlining the division of assets and any debt repayment arrangements.
  • The home must be the primary, owner-occupied residence.
  •  An appraisal is needed to determine the current market value.
  • The title must not be changed before approval; the buyout must be documented as a formal purchase in legal documents.
  •  The borrower must qualify on their own for the mortgage based on income, credit, and debts.

The new mortgage can only cover the agreed-upon equity buyout and joint debts—nothing more.

What If You Can’t Qualify on Your Own?

One of the most common concerns I hear is: What if I can’t qualify for the mortgage by myself?

You still have options:

  1. Your Ex as a Guarantor (Not on Title)

In some situations, your ex-spouse can remain on the mortgage only as a guarantor—not as a co-owner. This means:

  • You are the sole owner of the home.
  • You are both liable for the mortgage.
  • Your ex does not appear on title.

This can help you qualify, but it requires an amicable separation, and not all lenders allow it.

  1. Your Ex as a Co-Signer (With Minimal Ownership)

This option is more lender-friendly:

  • Both of you are on title and the mortgage.
  • Your lawyer can structure ownership 99% in your name and 1% in theirs.

This setup increases your chances of qualifying and gives you majority ownership.

  1. Using a Private Lender

If you’re rebuilding your credit or increasing your income, a private lender may be a short-term solution:

  • More flexible qualification guidelines.
  • Higher interest rates, brokerage fees, and closing costs.
  • Ideal as a temporary bridge until you can refinance through a traditional lender.

Frequently Asked Questions About Spousal Buyouts

Can I do a spousal buyout if we’re not divorced yet?
Yes. You don’t need to be divorced, but you must have a finalized Separation Agreement that outlines the asset division.

Do both spouses have to agree to a spousal buyout?
Yes. Both parties must agree and the details must be legally documented in the Separation Agreement.

Can I use my share of equity as a down payment?
Absolutely. In most cases, your share of the equity can be used as the required 5% down payment for the new mortgage.

Is an appraisal required?
Yes. A professional appraisal is necessary to determine the current market value of the home.

Can I do a spousal buyout if only one of us is on title?
Yes. The matrimonial home is typically considered a joint asset, regardless of whose name is on the title. Your separation agreement and legal team will address ownership transfer.

What if I don’t qualify on my own?
You can:

  • Use your ex-spouse as a guarantor (not on title).
  • Use your ex as a co-signer with minimal ownership.
  • Consider private lending as a short-term solution.

How much can I refinance up to in a spousal buyout?
You can refinance up to 95% of the home’s appraised value, but only to cover equity payout and agreed-upon joint debt.

Are there tax implications with a spousal buyout?
There could be, especially in complex ownership cases or if it’s not your principal residence. It’s wise to speak with your accountant or lawyer.

Do I need a lawyer?
Yes. You’ll need a lawyer to finalize the separation agreement, handle title transfer, and work with your mortgage professional to ensure everything is legally binding.

You're Not Alone

I understand that when you’re going through a separation, you’re not just trying to sort out the finances—you’re trying to protect your peace, your family, and your future.

This process isn’t just about mortgages and math. It’s about empathy, patience, and creating a tailored plan that works for you in this next chapter of life.

If you’re thinking about staying in your home but aren’t sure where to start, I’m here to walk alongside you. I’ll guide you through the process with care, clarity, and transparency, and I’ll work hard to help you stay rooted—minimizing disruption during this already difficult time.

You don’t have to do this alone.

Let’s talk about your options—no pressure, just support.

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When Home Is the Last Thing You Want to Lose: Navigating a Spousal Buyout with Heart and Guidance

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