
Splitting up but want to stay in the house? Here's how a spousal buyout works
'The market had largely gone up and it would be extremely difficult to find another house like this,' says the 34-year-old content creator, adding that the home had recently been renovated. 'I really just didn't want to let go of it.'
Many Torontonians like Scauzillo are considering buying their spouse out of the matrimonial home (the home they occupy at the date of separation) after divorce, due to an increasingly unaffordable housing market.
'When a married couple have joint ownership of the matrimonial home, meaning they're both on title, they have options when they separate,' says Olivia D'Ammizio, a family law lawyer and associate at Shulman & Partners LLP.
They can choose to list and sell the home, or they can choose a spousal buyout, where one spouse pays the other for their equity in the home and takes sole ownership. For example, if a home is valued at $600,000 with a $200,000 remaining mortgage, the equity would be $400,000. If splitting this equity 50/50, one spouse would need to pay the other $200,000.
In today's market, more people want to buy their spouse out 'because they're not going to be able to sell for as much as they'd like,' explains Mary Sialtsis, a mortgage broker with Concierge Mortgage Group. 'If somebody's been in a house for 10 to 15 years, there's probably significant equity built up,' Sialtsis says. Buying back into the same neighbourhood may be impossible.
Are you a Gen Z or Millennial (18 to 44) living in the Toronto area who needs help with a financial challenge or goal? Do you have questions and want some free advice from a financial adviser? Email Lora Grady at
lgrady@thestar.ca
and you could be featured in an upcoming story.
When pursuing a spousal buyout, one of the first steps is to determine the value of the matrimonial home, which is typically done through an appraisal from a neutral third party. If both spouses have appraisals done and there's a difference, they can negotiate a number somewhere in the middle. You and your ex can also get a letter of opinion from a real estate agent, D'Ammizio says. Whatever option you choose, both partners must agree on the number.
Once the value of the home is established, any debts associated with the home (such as a mortgage or home equity line of credit) are subtracted from the value. 'That gives you the equity of the home to then divide,' D'Ammizio says.
In Ontario, the full value of the matrimonial home must be shared equally between spouses — even if one spouse owned the home before the marriage or inherited it. This is important when it comes to the calculation for the equalization of net family property.
This process ensures that the wealth accumulated by both spouses during the marriage is shared equally. The spouse with the higher net family property (including the value of their interest in the matrimonial home) may have to make what's called an 'equalization payment' to the other spouse.
The person doing the buying has to ensure that they can secure financing and afford to cover the mortgage going forward. That means qualifying for a mortgage independently. A lender will consider factors like income and credit score.
A mortgage broker can determine if you would qualify for a spousal buyout mortgage, says Sialtsis, adding that many people who initially consider a spousal buyout don't realize how much money is involved.
People often think they only have to pay for half of what the house is worth, but they're actually taking on all of the debt associated with the home plus an equity payment (their ex-spouse's half of the home's value after the mortgage is paid off). That means 'the person who wants to buy the other partner out is taking on almost three quarters of the value of the home,' Sialtsis says. That's where things can get tricky; it can be hard to qualify for a higher mortgage on your own.
All three of Canada's mortgage insurers (Sagen, Canada Guaranty and the Canada Mortgage and Housing Corporation) offer a spousal buyout program, which allows one spouse to pay off the other spouse's share of the equity and become the sole owner.
If the value of the matrimonial home is $500,000 or less, the spousal buyout mortgage can cover up to 95 per cent of the value of the home. In a traditional refinance, you can only borrow 80 per cent, Sialtsis says, but with a spousal buyout, you get access to an extra 15 per cent of financing. A signed separation agreement is required to qualify.
There's also mortgage default insurance, which is mandatory for mortgages where the down payment is less than 20 per cent of the home's purchase price. If you're purchasing a property for $500,000 or less, you can make a down payment as low as five per cent.
Sialtsis says you should look into whether or not you are on title before considering spousal buyout as an option, because it is a requirement for both parties to be on title to qualify for a spousal buyout mortgage. Other than that, the qualifying rules are the same as any other mortgage.
Most lenders will require that there's a fully executed, legally binding separation agreement in place before you can qualify for a spousal buyout mortgage, Sialtsis says. The agreement should outline the terms of the buyout.
Cutting off accounts. Withholding money. Hiding assets. Financial abuse is a common tactic used
If the buying spouse is not on title, says Sialtsis, then the purchase of the home would have to be done as a regular purchase and mortgage. It could be handled as a private sale.
D'Ammizio says some people may take out private loans to finance the purchase of the home, or they may get a co-mortgager to be able to afford taking it on.
Scauzillo and her now-ex-husband owned the matrimonial home as well as a condominium they rented out to tenants. They decided that she would buy him out of the house and he would buy her out of the condo. Scauzillo wasn't aware of spousal buyout mortgages, but luckily, 'there was no animosity' between her and her ex-husband, so negotiations were smooth.
In a common-law relationship, if both partners are on the property title, they get the same options of a buyout or sale. If only one partner is on title, the other could make a claim that based on significant contributions to the property, it would be 'fair' for them to be compensated.
That claim would have to be proven before any kind of payment for equity would be made, D'Ammizio says, adding that the outcome would depend on the specific facts.
If both parties can't agree on the terms of a spousal buyout, they'll likely need court intervention. A court can't order a spousal buyout, but it can order the sale of a jointly owned property where proceeds would then be split 50/50.
Before deciding to pursue a spousal buyout, check in with a mortgage broker or your bank to see if you are in a position to take over whatever debts are associated with the home, says D'Ammizio. You may also want to get legal advice from a family law lawyer.
There's no rule about who must move out of a shared home when a couple separates, write Lisa
If a buyout is an option, there are other moving parts that can come about when dealing with the financial issues, D'Ammizio says. For example, in some cases, an ex-spouse may choose to deduct any future spousal and/or child support from the proceeds as part of an equalization payment.
A year after buying out her ex, Scauzillo realized the mortgage was too expensive for her and there was a lot of space she didn't need, so she rented out the home and moved into a smaller, more affordable apartment. Now, she's planning to move back into the house with her new partner.
'I still feel so grateful that I did the spousal buyout, because now it's giving my partner and (me) the opportunity to have this beautiful life in a home in Toronto that we may not otherwise be able to afford.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


New York Post
26 minutes ago
- New York Post
Sydney Sweeney's steamy new ad campaign for American Eagle turns teen retailer into latest ‘meme stock'
American Eagle Outfitters shares soared into 'meme stock' territory — after the teen retailer revealed Sydney Sweeney is leading a steamy new ad campaign for the fall. The company's shares surged nearly 10% on Thursday after it unveiled its new marketing blitz, which features the 'Euphoria' star sporting a denim jacket over her otherwise bare torso. In a sultry video spot, Sweeney leans under the open hood of a vintage Mustang GT350 in a tight tank top, then slams the hood shut — and wipes her hands on her butt before hopping into the car and peeling off. Advertisement 6 Sydney Sweeney fronts American Eagle's fall denim campaign, helping ignite meme stock buzz around the brand. American Eagle The edgy ads appeared to defy the 'wokism' lately embraced by some major brands — sometimes with disastrous effects, according to commenters on social media. 'Based ad campaigns are back, and wokery is gasping for breath,' commented X user Zia Yusuf — using the Gen Z term 'based' that typically signifies something which is controversial yet true. Advertisement 'Take note Jaguar,' Yusuf added, referring to the UK car maker's flopped ad campaign last fall featuring androgynous models. 'Sydney Sweeney drops a cheeky ad, American Eagle stock soars 22%,' another X user gleefully observed. 'Woke's dead, baby. Woke's dead.' American Eagle joins a volatile cohort of newly anointed meme stocks, including GoPro and Krispy Kreme, which saw sharp price swings in Wednesday's session. Advertisement Earlier in the week, meme traders focused on names like Opendoor Technologies and Kohl's, creating brief rallies driven largely by social media buzz rather than earnings or company news. 6 The stock surged on Wednesday after the company rolled out the ad campaign featuring Sweeney. Google Finance Analysts and traders noted that the Sweeney campaign had helped reframe sentiment around the company, whose shares had fallen 35% this year ahead of Wednesday's close. The retailer's strong brand recognition and more than 13% short interest, according to FactSet data, made it a natural magnet for meme stock traders seeking short squeezes and speculative gains. Advertisement Chatter about American Eagle gained momentum late Wednesday on the popular Reddit forum Wall Street Bets — best known for its role in the 2021 GameStop and AMC rallies. 6 The denim-heavy campaign with Sweeney comes as retailers lean into the Western fashion revival. American Eagle 'We do not comment on trading activity or fluctuations in the stock price,' an American Eagle spokesperson said. 'We remain focused on executing our strategy and taking actions to position the company for long-term performance.' 6 American Eagle saw a 6% stock surge after naming Sydney Sweeney the face of its fall 2025 campaign. American Eagle Last year, Sweeney partnered with men's personal care brand Dr. Squatch for a multi-platform marketing blitz that helped propel the company to a $1.5 billion acquisition by Unilever less than a year later. The campaign — dubbed the 'Body Wash Genie' — cast Sweeney in a playful, satirical role across TV, YouTube, podcasts and social media. One limited-edition product, a 'Bathwater Bliss' soap made with droplets from one of Sweeney's baths, sold out instantly and triggered a frenzy of resale listings on eBay, where individual bars fetched as much as $2,000. 6 Sweeney's campaign for American Eagle sparked discussion on Reddit's Wall Street Bets as traders took notice. American Eagle Advertisement The campaign overwhelmed Dr. Squatch's website and generated massive viral buzz. The results were staggering: Dr. Squatch received over 800 media placements, 11.9 billion impressions and a spike in consumer engagement that accelerated its retail growth and brand valuation. 6 The campaign was described by the brand as the perfect mix of 'ease, attitude, and a little mischief.' REUTERS The Sweeney campaign was credited by industry observers as a key driver in Unilever's decision to acquire the company for $1.5 billion last month. Advertisement Unilever's press release cited 'viral social-first marketing strategies, partnerships with celebrities and influencers, and culturally relevant collaborations' as central to Dr. Squatch's rapid growth — a clear nod to Sweeney's role in elevating the brand. Last year, Crocs' stock jumped more than 4% after its Heydude brand announced Sweeney as global spokesperson, with analysts crediting the move for renewed investor optimism. A spokesperson for Sweeney declined to comment. The Post has sought comment from American Eagle.


Entrepreneur
26 minutes ago
- Entrepreneur
4 Workplace Shifts Driven by Gen Z's New Expectations
By 2030, Gen Z is expected to account for a third of the US workforce. It's not just a demographic shift – it's all about values, behaviors and the very definition of what work means. Opinions expressed by Entrepreneur contributors are their own. Millennials pursued homeownership and career advancement as personal milestones. Boomers prioritized duty and societal contribution. Gen Z, however, brings a different mindset to the workforce — one that values meaning, flexibility and identity alignment. For employers, understanding and adapting to Gen Z's new standards isn't just a cultural shift — it's a competitive advantage. In this article, I'll outline four key trends to watch as you engage the next generation of workers. Related: Gen Z Is Redefining the Workplace — and Companies Must Adapt or Face Losing Talent 1. Purpose over paychecks Gen Z wants to know their work has a positive impact on people, communities and the planet. According to Deloitte's 2023 report, one in four Gen Z workers said they don't want a job that doesn't meet their vibes and values. In recent years, ESG (Environmental, Social, Governance) commitments have become a key factor in brand selection, with Gen Z consistently seeking sustainable and ethical practices. To connect with Gen Z, businesses must build missions that go beyond profits. For example, at Flowwow, our mission is to help people bring joy through thoughtful gifting that speaks volumes. That is exactly what clicks – both for us and for our people. It's equally important to involve employees in shaping internal processes, especially those that impact team wellbeing and the overall customer experience. Finally, companies should look beyond functionality and consider the emotional impact their product or service creates. Ben & Jerry's is committed to sustainability and social justice, and it's not just in their marketing – it's embedded into the workplace. Employees are encouraged to engage in activism, giving Gen Z team members a clear sense that their work contributes to positive societal change. Related: Why Gen Z Is Ditching Corporate Jobs for Franchises 2. Flexible approaches According to a 2024 LinkedIn survey, 72% of Gen Z workers have either left or considered leaving a job due to lack of flexibility. This generation has little tolerance for tough schedules, fixed workplaces and top-down hierarchy. They were mostly raised in an atmosphere of support, so they expect to be heard, to co-create systems and to work within frameworks they help define. To meet Gen Z's expectations, companies should build a transparent culture where every feedback is cherished. Involve employees in shaping their own workflows, tools and timelines. Offer remote work and flexible hours as default — that's how your team will feel trust and respect for individual working styles. 3. Life comes first Having grown up with packed schedules, Gen Z now seeks balance between work and a wide range of personal interests. They're still full of career ambitions, but success often means having time for hobbies and 'me-time'. A 2025 Deloitte study shows that only 6% of Gen Z set leadership as a must. Instead, the majority prioritise work-life balance, meaningful experiences and freedom over climbing the corporate ladder. Upwork also found that up to 80% of Gen Z prefer hybrid roles, valuing autonomy and balance. To create a workplace that aligns with Gen Z's values, companies should provide opportunities for employees to share their passions and learn from one another through internal events and pastimes. Another great idea is to make space for informal connections and off-site team bonding that goes beyond team-building clichés. At Flowwow, we've created a channel where team members share everything from film reviews to hiking tips. It helps strengthen bonds and build culture around shared passions. And of course, HR programmes should support employees' interests outside of work. Related: Gen Z Is Increasingly Turning to Trade Schools as a Fast Track to Entrepreneurship and an AI-Proof Career 4. Self-care as a must No generation has been more open about the importance of mental health than Gen Z, with over 60% reporting therapy or counseling experience. They want workplaces that offer mental health support. Moreover, 70% of Gen Z workers value comprehensive health benefits, including fitness reimbursements, wellness programs and medical insurance covering mental health. Prioritise support, psychological safety and physical health. This might mean an in-house mental health counselor or partnerships with therapy platforms. Create policies that respond to anything that is offbeat: paid sick leaves for family emergencies, bonuses for overworking, loyalty programs and extra care for high-intensity roles. Netflix leads the way by offering free therapy and coaching to employees and dependents. Mental wellbeing is integrated into DEI efforts and everyday operations, from mindfulness sessions to targeted workshops for Gen Z and BIPOC employees. Gen Z isn't just changing the way we work – they're changing why we work. Their expectations around purpose, flexibility, wellbeing and balance are reshaping not only the workplace but also the very idea of work itself. So, what can we do? Grow alongside this generation.
Yahoo
an hour ago
- Yahoo
Around 94% of Gen Z workers need help in dressing for the office—and they're experiencing outfit anxiety three times more than their boomer coworkers
Gen Z watched their peers get fired for dressing inappropriately for the office. Now, they're too scared to dress themselves, even reaching out to managers for guidance. The confusion is also causing stress, as the young generation and millennials are almost three times as likely to have outfit anxiety compared to their boomer coworkers. Many are even turning to their boss for fashion advice, but experts tell Fortune they'd be better off silently taking cues by copying their looks. After years of wearing pandemic-era tracksuits and a nice top for Zoom meetings, many employees are in the dark about what's appropriate to wear now that they're back in an office. While all generations are lost, Gen Z is having the hardest time, with many even turning to their managers for styling tips. About 78% of workers are seeking guidance on what to wear at work, according to recent data from workplace solutions company IWG. But the youngest cohort of employees needs the most help, with 94% of Gen Z looking for advice on their work outfits, compared to 84% of millennials, 70% of Gen Xers, and 61% of baby boomers. Much of Gen Z's confusion may chalk up to simply being the newest in the office, with many having started their careers from their couch. 'It's understandable that the generation with the least working experience will have the most questions about what to wear and what is appropriate in the workplace,' Diana Tsui, a stylist and creative consultant partnering with IWG, tells Fortune. 'There has been a fundamental shift in the way in which employees of all generations approach their workwear attire.' But with over half of employees in each generation looking for workplace fashion tips, the changing rules have left many unsure of what's appropriate. The lack of clarity is so bad it's stressing people out—staffers said they experience anxiety about what to wear to the office seven times a month. Gen Z and millennials are nearly three times as likely as baby boomers to worry about dressing properly, so they're turning to their superiors for guidance. About 30% of Gen Z seek guidance from their manager, compared to 14% of Gen X and 10% of boomers. Instead of outright asking their boss what to wear, they could take Tsui's advice of taking silent cues by copying their looks. How Gen Z should dress for the office: take inspiration from higher-ups and show restraint Gen Z has been popularizing new fashion trends at the workplace, like the 'office siren' look: dressing 1990s-corporate while 'pushing the boundaries of what's considered acceptable,' the report notes. It's a twist on power-dressing, but certain elements—like plunging necklines and short skirts—could land them in a meeting with HR. Data shows that already, many Gen Zers have been fired for dressing inappropriately, only adding to their anxiety. Luckily, there are a few surefire ways that Gen Z can avoid the early-morning anxiety of having to pick out an appropriate outfit for the office. 'Workwear is never going back to its suit-and-tie days, although that can be fun to dabble in,' Tsui advises. 'Take a cue from your industry and see how their prevailing dress codes enmesh with your own sensibilities.' Tsui has three major tips for young staffers to stay in line with company dress codes and avoid getting sacked for their outfit: Take inspiration from your superiors: Take a look around the office or check how older coworkers are showing up in Zoom calls. She notes that young workers don't have to copy their higher-ups, but rather get a vibe-check on the dressing environment. Express yourself, with restraint: If it's a more conservative environment, playing with proportions can be a fun way to spice up drab corporate attire. A chunky shoe or eccentric pair of earrings can go a long way in adding flair to an outfit. Don't show too much skin: Wearing clothes that are too small and show too much skin is 'usually still frowned upon,' so try to avoid anything too revealing. Why nobody knows how to dress for work anymore Gen Z isn't the only generation of workers torn on what's acceptable to wear to the office anymore. Experts Fortune has spoken with all contend that the COVID-19 pandemic was a major turning-point for workplace attire. Now, employees are back in the office, and they don't know how to give up their stretchy pants. Tsui says it's on employers to navigate the new world of work attire, and share clear policies with their staffers to avoid any unnecessary stress. 'This shift away from traditional norms toward more flexible policies highlights the need for modern guidance,' she explains. 'As companies adapt to hybrid models and multi-generational teams, employees are increasingly seeking clarity on how to balance self-expression with professionalism in evolving work environments.' With four generations in the office—Gen Z, millennials, Gen X, and baby boomers—it's natural that there's going to be huge divides in terms of style. But HR experts agree that a few shifts are here to stay for everyone: sneakers are in, ties and heels are largely out, and you still probably shouldn't wear shorts. Sometimes, casual and comfortable styles can blur the lines of what's proper for the office—but Tsui says if styled properly, employees can make it work. Young staffers can also better curb their outfit stress by adopting a 'work uniform.' Gen Z and millennials already lead the way in having a standard style, with 59% having a uniform, compared to 53% of baby boomers, the IWG report notes. It's a trend among younger generations that gives them a sense of control over their careers—and takes away the concern of picking out a new outfit everyday that may or may not be appropriate for the job. This story was originally featured on Solve the daily Crossword