HANY ADAM - BEST SELLING OPTIONS IN A DIVORCE

BEST SELLING OPTIONS IN A DIVORCE

HANY ADAM

Table Of Contents

Moving On

Be Prepared

Marital Settlement Agreement

Separation And Divorce Q&A

Relating The 80/20 Rule To Home Selling

Creating Curb Appeal

Staging With Purpose

Upgrade With ROI In Mind

The Three D's

10. How To Market Your Home

11. Common Seller Mistakes

12. Avoid Costly Mistakes

13. Finding Buyers

14. Be A Power Negotiator

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15. The Dos And Don'ts Of Negotiating

107

16. Bargaining Chips

113

17. Serious Considerations

117

Foreword

When I first ventured into the real estate industry years ago, I did so with the hopes of helping sellers like you avoid the headaches often associated with the home-selling process. In my years of experience, not only have I helped alleviate the stress of selling for numerous clients, but I’ve also accumulated years of knowledge to help them get more money for their homes in the least amount of time. I decided to share all of my expertise in one place with potential clients. And that’s why you’re receiving this book. I want to help you have the best possible home-selling experience. And by that, I mean I want you to 1. Get the most money possible for your home, 2. Sell in the least amount of time, and 3. Avoid the headaches most commonly associated with the home-selling process.

Think of this book as my gift to you. It contains insider advice on the home-selling process to help you achieve your ultimate real estate goals, including:

· Secret strategies to sell your home for more money · Marketing techniques employed by top agents · Advice on how to appeal to today’s buyers · And much, much more

If, after reading through it, you want to hire me to help you sell your home, I’d be more than happy to meet with you to discuss a v

specific plan to sell your home. Happy reading!

About HANY ADAM

Hany Adam got into the real estate industry 12 years ago when he quit his job as a Computer Network Engineer in one of the top 500 Companies worldwide. Hany was taught at a young age that if you want something in life, you have to work for it. So that’s what he did. And he worked hard. He followed a quote which completely changed his life...

"IF YOU WANT TO DO SOMETHING... YOU WILL FIND A WAY... IF YOU DON'T... YOU WILL FIND AN EXCUSE" (Jim Ron)

With a reputation for placing clients’ needs, goals and objectives at the forefront of every transaction, Hany Adam provides communication, negotiation and management skills in combination with in-depth knowledge of the GTA neighborhoods and real estate market. "CLIENTS FIRST" • Hany Adam offers a winning combination of proven success, peer respect, professional strengths, background and experience. “Truly pleasant and very easy to work with” and possessing “superior negotiating skills” are just two of the acknowledgment of merits Hany earns frequently from clients and colleagues alike • Bringing to the buyers and sellers of Toronto, Peel and Halton regions properties the same level of service, dedication and respect. • Known for his patience, listening skills, caring and understanding • Respected by his clients and colleagues alike for his attention to others’ needs in even the most challenging

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property purchase or sale • Praised for client satisfaction and effectiveness as counselor, facilitator and liaison – from property search or listing, through market analysis, to negotiations and closing • Continues serving his clients beyond the close of deal Also known for: • Calm, well-grounded and highly effective communication skills • Dedication, persistence and attention to detail in service to his clients • Transaction management and negotiation expertise Hany Adam has 2 kids, a girl and a boy. He lives in Milton, ON with his wife and the youngest son. In his free time, he enjoys travelling and watching TV and dine out. Hany aims to provide the highest level of service to his clients and takes deep pride in helping them achieve their real estate goals.

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Testimonials & Reviews for Agent Name

My goal is to help my client make the right moves for them in the GTA Real Estate market. Here are some of the experiences that my clients have had with me in their own words.

A huge thank you to Hany Adam for making our home selling experience remarkably easy. The professionalism demonstrated by Hany provided us with an immediate sense of confidence that was unmet by any other sales representatives we'd previously considered. Our home sold in twenty-one days for 101% of our listed price! Thank you, Hany,

Thank You to Hany Adam for going above and beyond in helping my family find a new home. Hany was involved more than is normal in all of the little things, (from financing, inspecting the home, sharing your wisdom etc). I am pleased that I recommended you to help out my niece & nephew and knew from my own personal experience that you would make sure they were taken care of. Look forward to dealing with the you in the future and will continue to recommend you.

Typically, I have not enjoyed the realtor experience, but I have to say dealing with Hany was a pleasant surprise. You came highly recommended, and I felt you delivered on your word. The house

sold quickly and for more money that I was counting on. I will keep you in mind if anything else ever comes up

Hany is a fantastic listener. He knew the situation of the sale and was on my side. I never felt “rushed” or “pressured” to make a decision on the spot. I would highly recommend Hany a 100% to anyone buying or selling! Everything went smoothly and in a professional and friendly way.

Hany puts his client's needs and wants as a top priority. He listens to his clients and helps them make informed decisions. He will work day and night to make his clients happy, often going beyond the "call of duty". And he does it with a smile on his face! He is patient, professional, and extremely knowledgeable about real estate industry. Thanks for all your help and support Hany, you have a client and friend for life!

We purchased our home in April 2007 from the HANY ADAM Team. We were totally satisfied with the service provided to us. Your buyer’s agent was knowledgeable about the area and market and was always very responsive to our request and questions. In fact, he went "above and beyond the call of duty" on numerous occasions. We would definitely call on the HANY ADAM Team again if we are in the market for a new home. --- Greg & Mary Julia

Just a quick not to say thanks to HANY ADAM for all your help in finding me a home and explaining the paperwork process. The builder agent stated that I had the most attentive agent she's ever met. --- Mark

First we want to say thank you because we just love our new home. We owe a lot of thanks to you for your expertise, professionalism, and most of all your patience with all of the MLS numbers that you were given. Your communication with us from the beginning to end was superb. The HANY ADAM TEAM will be highly recommended to anyone we know who is interested in purchasing or selling a home. --- Bryan & Pamelia

It was such a pleasure working with the HANY ADAM Team. You are a group of caring individuals. We really appreciate all you did for us and will use you in the future and definitely refer you to our friends. --- Karen & Paul

When my family and I were ready to take the next step in life and purchase our first home, we were overwhelmed and did not know where to begin. Just the thought of finding a realtor out of thousands there are, and then finding one that you can trust with what may be your first and last biggest decision that you will have to make in your lifestyle was too much. That is when the HANY ADAM Team stepped into our lives. Our home buying experience was a joy. We found the home that was

perfect for our newborn child and ourselves. --- Darren and Shalynn

Johnny and I wanted to thank you for all you did helping us find our new home. To our surprise, we spent only 1 (one) Saturday and we found it, our new Home, the second house we looked at! I kept thinking "There's no way we could find our dream house so quickly! The dogs also thank you every time they walk on the grass. We are all happy and excited to be in our new home. We could not have done it without your expertise, sense of humor, understanding and caring. Thanks again to the HANY ADAM Team. --- Johnny and Tracey

Hany is the first agent I would call

Hany kept us calm throughout the process!

Hany Adam and his team always made themselves available to answer questions. they worked hard to sell our home and find the best fit for our new home. they worked with us through the entire process and kept us calm when we got anxious.

”Don’t deal with pushy telecom salespeople! Call a Professional today!”

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Not Intended to Solicit Persons Under Contract to another Real Estate Brokerage

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CHAPTER 1 Moving On

Divorce is not easy. Even the most amicable separations are troubled with disappointment, lack of communication, and failed expectations. In the best case scenario, two people who are dissolving their union will work together to resolve their differences productively and part ways, hopefully without drawing blood. Unavoidably, though, during the process, you and your spouse’s emotions will fall prey to a myriad of changes as the marriage, family, and shared assets are legally separated. Adding to the stress is the sale of the family home, which is typically the largest asset of the marriage. This can evoke tremendous emotion: sadness, anger, sentiment, and disappointment, to name a few. The combination of the stresses of the divorce with the sale of the family home requires patience, diligence, and great personal fortitude. With the help of seasoned, experienced professionals — such as attorneys and real estate agents — divorcing couples can successfully move through this challenging phase of their lives and on to their future. The phrase “and this, too, shall pass” sounds like a bad cliche in a moment like this, but it's one worth keeping in mind. No matter how bad “it” gets, it will eventually pass. The divorce will become final. The house will sell. The children will adapt, and life will go on. This is where that personal fortitude will come in handy. Decisions regarding the family home are not only emotional, but mired in legal maneuvers and decisions as well. Divorce laws vary based on location, so licensed legal counsel is your best source of information on how to protect both parties’ interests.

Many questions arise when trying to sell your home during a divorce. What needs to be done to ensure a quick and profitable sale? Who will choose the Realtor®? When is the best time to list a home? Who bears the financial responsibilities of the sale? You can proactively allay your fears and clear up misconceptions by doing your due diligence and researching what to expect throughout the selling process. Every divorce has a unique set of circumstances. This book is not intended to be a legal guide or to dispense legal advice but provide you with a source of information regarding the sale of your marital real property. Becoming familiar with some real estate terminology and options will give you a better understanding of your situation and confidence that, indeed, “this too shall pass.” The court determines who receives what based upon a variety of factors, such as the relative earning contributions of the spouses. In community property areas, on the other hand, all income and assets earned or acquired during the marriage are considered to be equally owned. This applies to all debts, no matter who created the liability. In a divorce action, these will be divided equally. In addition, there are mutual court orders that automatically protect marital properties. An automatic temporary restraining order prohibits spouses from selling, transferring, or borrowing against property when a divorce is filed. Again, any orders should be discussed with your attorney, as this protection varies by region. In family law disputes, a court can order the sale of a matrimonial home unless the party who resists the sale can establish a legitimate case that they are entitled to a competing interest in the home under the Family Law Act.

Where that party cannot establish this competing interest, the

home can be ordered sold. Where that party can demonstrate this competing interest, the motion to order a sale will be dismissed unless the person bringing the motion can demonstrate that the sale would not prejudice the person’s rights. When a home is sold under court order, the court can also order that the proceeds be placed in trust and not be accessible by either party until an agreement is made between the divorcing couple. The family home is typically a couple’s most valuable joint asset and must often be sold in order to equally distribute its value between the two spouses. Therefore, it is vital for you to understand the relationship and difference between a mortgage deed and a property title. Mortgages are conditional legal agreements made for the purpose of buying a property/home. The lender’s security interest is on record when the title is registered. The mortgagee (lender) may obtain a foreclosure order to take possession if payments of the debt are in default. A property title refers to ownership of that property and the right to use it. A person on the title can transfer ownership to another party but cannot transfer more than he or she owns. Some divorcing couples utilize a quitclaim deed, which transfers ownership from one spouse to another, but it does not transfer financial responsibility. One spouse may transfer title of the home to the other and consider himself or herself free from the financial responsibility of the mortgage payment, but this is not the case. The loan payments are the responsibility of the parties on the mortgage. In order to change the names on the mortgage, one spouse must obtain financing with which to buy out the other. All discussions regarding mortgages, quitclaim deeds, and title of property should be conducted with your legal adviser. The intent of this book is to provide information regarding the sale of your

home within the framework of a divorce; it is not intended to provide legal counsel or advice.

CHAPTER 2 Be Prepared

Step one in successfully handling the disposition of the family home in a divorce is to have a clear understanding of your financial standing. Knowing your precise financial situation throughout the emotional turmoil of divorce will keep you from making snap decisions that could severely impact your financial position. It is crucial to know who bears legal financial responsibility for making the mortgage payments. If both spouses are listed on the mortgage agreement, they are equally obligated to the lender, whether or not their name is listed on the property title. Removing a party from a property title does not relieve the financial obligation of that party. Two signatures on the mortgage means two responsible parties. This also includes the homeowner’s insurance policy. It is important to know who is the beneficiary and if both parties are insured. For the previously stated reasons, it is critical that you collect and immediately provide to your lawyer all information regarding your home insurance, property taxes and liens, mortgage and marital debts, and marital assets. The more prepared you are to face your financial future, the more secure you will be moving forward. Knowing where every dollar has to go will help you make better decisions and avoid adding undue additional stress to the already uncertain future that accompanies divorce. Knowing where you stand financially greatly influences your decision to keep, sell, or buy out the family home. There are many considerations for each option, and they all require a significant amount of due diligence, financial planning, and difficult 5

decisions.

Affordability and objective forethought are the keys to your decision-making process. Poor decisions can affect you and your former spouse, long after the divorce is finalized.

KEEPING THE HOUSE

When divorcing couples have school-age children, they often decide to allow one spouse to remain in the home to avoid disrupting the children’s routine, school attendance, and social relationships. This can be accomplished with written agreements between the spouses. Equitably allocating home expenses and mortgage payments by percentages or mutually agreeing on the delegation of financial responsibility will allow your family to focus on what matters most: the children. A clear-cut, signed agreement drawn up by a mediator will help avoid contention surrounding responsibility for the maintenance, expenses, and future sale of the family home, whether it be to the spouse who remains in residence or an outside buyer. This is why it is important to know your financial position and how much each spouse can contribute. If one spouse fails to make their share of payments, it can negatively affect both parties’ credit ratings and complicate the later sale of the home. If each spouse has provided appropriate evidence that they have sufficient resources to maintain this type of arrangement and is willing to participate in the agreement, this may be the right path. Some couples choose to reside in the home as roommates for different reasons. It might be that neither spouse is able to afford both their share of the home and a new residence, or it could be to decrease the abruptness and difficulty of the children’s transition. If, later, one leaves, that person will have increased financial obligations in finding a new place to live, so give serious

thought before choosing this option.

Be aware, though, that some spouses are tied to the home, not only by their children but by their own emotional investment. The house represents stability and a happier time and provides shelter from the trauma of divorce. In keeping it, they may feel more in control of their situation. Some may think that keeping the home makes them the “winner,” despite the financial hardship it can bring. It is difficult enough to deal with divorce without later learning that unforeseen or unbudgeted expenses have crept in and taken a big bite of an already tight budget. Be realistic about what is affordable.

SELLING THE HOUSE

For most couples going through a divorce, selling the house is the best solution. Selling a home under any circumstances takes a great deal of time and effort, so the addition of the emotional stress of divorce can make the task overwhelming.

LEGALITIES

The termination of a marriage requires the division of real property. Marital property belongs to both parties, regardless of whose name is on the title, and each party is entitled to their equitable share. Some couples have a legal agreement beforehand, which provides a simple solution to property division. Some couples are able to use mediation to divide assets, but others are unsuccessful in negotiating equitable terms and must turn to the courts to rule on the division of their real property. Again, this book is in no way a substitute for professional legal advice. Always consult your attorney regarding the division of real property. Many couples enter into a mortgage based upon the expectation of a two-salary income that generates enough money to cover the

monthly mortgage payment, upkeep, utilities, and unexpected repair. It may be that neither spouse is in a financial position to singularly carry the full financial burden, and neither may be in a position to buy out the other. Preventing default on the mortgage is the most common reason divorcing couples choose to sell the family home. Monies budgeted for the upkeep of the home, property taxes, home insurance, home security, and house payments may or may not still be available when couples split.

THE EMOTIONAL SIDE OF SELLING YOUR HOME

If the marital home has been the hub of happiness and family life, it may turn out to be a constant reminder of what once was and is no more. The good memories the home represents are now tainted by the unhappiness and pain of divorce. No matter how strong sentimental value may be, often the best option is to sell the house and move on. That way, both spouses get some money to make a clean break and start fresh. Once you’ve decided to sell, there is a long “to-do” list — a list that is difficult under the best of circumstances and only made more difficult with the added emotion of divorce.

LIABILITY

The liability of keeping a home may be the best reason to sell. There are various ways to keep a house with one spouse remaining and the other departing, but they all carry risks and challenges. An equity buyout occurs when one spouse keeps the asset, and, in exchange, compensates the other for his or her share of the equity.

THE BUYOUT

If one spouse is in a financial position to remain in the home, it may be easier to buy out the other’s share of the property, which would entail refinancing the home. The real challenges come in

working out the details. There could be disagreement about the selling price or the appraisal value. Or, the equitable division of the property may not meet expectations. Other questions that arise include the possibility of giving up marital property rights in exchange for other assets, like investments. The ex-spouse may lose out on future appreciation of the house. It is crucial to know that questions like these will arise when it comes to the division of property in a buyout situation and that you have to be prepared to address them. Refinancing the home in one spouse’s name means not only settling the previous loan but paying the selling spouse their portion of the buyout. As an example, if the principal balance owed is $300,000, and there’s another $200,000 in equity, one- half of the equity ($100,000) would be due the selling spouse, and $150,000 would be required to pay off the principal. The refinanced loan would have to be at least $250,000. If the house value has appreciated, who is entitled to the equity? What if the property is appraised lower than the current loan? All scenarios must be considered before deciding on a buyout. Again, knowing your financial standing before filing for a divorce is paramount.

CO-OWNERSHIP

If you or your spouse want to keep the house and buy out the other, but need time before this can be accomplished, co- ownership is a possibility. However, maintaining a clear channel of communication with the ex-spouse is a major part of co- ownership and one of the most difficult to achieve because it requires a lot of mutual trust, something that is typically lacking in most divorce scenarios. The goal is to move forward, so any concessions made between the spouses benefit not only both parties but especially the kids. Maintaining a civil, business-like relationship in front of your children will help them maintain stability and keep them from

moving away from their home, when they’re already adjusting to a lot of change. If one of the spouses can occupy the home with the children and make the mortgage payments until they can manage a buyout and become the sole owner, it’s a win- win. The drawback to this type of arrangement is the negative consequences if the spouse in residence defaults on mortgage payments. Both parties are still responsible, and missed payments will affect both spouse’s credit scores. Moving forward with a new life can be tricky in a co-ownership agreement because consistent communication is necessary, and that isn’t always (or even usually) easy for divorced couples. House payments, insurance premiums, utilities, and necessary repairs are guaranteed financial obligations. What if the utilities are shut off due to nonpayment? What if the home heating and air-conditioning system terminally fails? What if you moved two hours away and your ex-wife needs you to help with a fallen tree because she can’t afford to pay someone to dispose of it? What if the resident spouse has to move out because s/he cannot afford to stay? What if the resident ex-spouse files bankruptcy and risks losing the house? These are all very real possibilities. Co-ownership must be considered carefully, and a knowledgeable attorney dedicated to protecting your family’s well-being will be your best source for guidance on the complexities that may arise. An agreement can be created to address all the obligations mentioned previously and protect both parties at the same time. No matter the option you choose, the mortgage must still be paid . Selling is the only alternative if neither of the spouses can afford the home on a single income. A short sale is possible if the home is going into foreclosure. You can come to an agreement with your lender to sell the home for less than is owed.

Walking away from your home and mortgage is not tolerated

by the courts. The lender will add to the complications of your divorce by taking legal action to receive the remaining balance. You can find yourself in court if you or your spouse is uncooperative or is demonstrating an obstructionist attitude, which will cost more time and more money. Many divorcing couples end up using up what equity they had in their marital property on legal and court fees. Refusing to sign papers to sell the home or refusing to help pay for the mortgage will give a judge no other option than to order the home sold on the court’s terms. When a divorce action is filed, an automatic temporary restraining order can be issued to prevent spouses from selling or borrowing against marital property. Discuss this option with your lawyer to make sure your stake in the marital property is protected. Less than one-third of divorces end up in court due to disagreements over property division, but if you’re in that unfortunate one-third, going to trial doubles the cost of the divorce. Many divorcing couples who want to limit legal fees as much as possible, as well as the time it takes to settle, choose to sell their home. Surveys show that couples who resolved their property issues without court intervention completed the divorce in under a year. Those who could not agree and went to trial had to wait an average of 15 to 16 months. Some provinces require divorces to be resolved within a year, but dockets are full in many provinces, which causes long wait times for a divorce trial. While you’re waiting for the trial date, the mortgage still has to be paid, as well as utilities, insurance, and property taxes. The rest of this book will expand upon the benefits of marital agreements that help sell the home, the importance of having realistic expectations regarding the value of your home, and how choosing a Realtor® who has experience working with divorcing

couples may be your greatest asset in the sale of your home.

CHAPTER 3 Marital Settlement Agreement

One of the most productive methods for couples to move forward with a divorce and on with their lives is to disconnect emotionally and handle the sale of the home in a business like manner. Because the marital home is usually the greatest asset in a marriage, it is also the greatest liability. You must give a lot of serious thought to securing settlement terms that protect both parties, especially the spouse who is departing the home. When you enter into your marital settlement agreement, your lawyer should specify who is financially responsible for the mortgage, the homeowners insurance, utilities, and upkeep of the marital home. If the spouse occupying the marital home is responsible for listing, showing, and selling the home, the other spouse may be obligated to pay part or all of the mortgage, as well as contribute to the upkeep of the home. If the occupying spouse shows little effort in getting the house sold, the marital agreement should provide a timetable for the sale of the home. It is important for the marital agreement to include provisions outlining the steps to be taken if the house cannot be sold within a specified time or if one spouse fails to meet any financial obligations. Consult your legal adviser for contingencies that are specific to your situation. Additional expenses may include repainting, landscaping, or replacing appliances or carpeting. There should be clear direction on how to handle the unexpected while in the process of selling the home — for example, if a home inspection reveals a cracked foundation or termite infestation. Ex-spouses sometimes agree to a fixed amount of time to share expenses prior to the sale of the home. Quick decisions can be damaging, 13

especially when it comes to co-ownership or one spouse occupying the home until it sells. By keeping emotions at bay while making important decisions and focusing on what needs to be done to sell your home, you and your ex-spouse can move on faster.

REASONABLE AND REALISTIC EXPECTATIONS

Since the home is one of the most valuable marital assets, dividing the property between a couple in the pain of divorce can be a major source of disagreement. If you have other properties, such as a vacation home or investment properties, those will also have to be assessed and assigned a monetary value. In order to divide equitably, or equally, as the case may be, you will need to know the precise value of your property. When it comes to the marital home, there are several common valuation methods available to determine the value. These are used in property settlements and may differ from what you perceive as your home’s worth.

COMPARATIVE MARKET ANALYSIS

Your Real Estate Broker will provide you with a comparative market analysis, or CMA. This is an in-depth review of your home’s worth in the current market, based on the recent sale prices of comparable homes. Any differences, such as the size of the lot or value-added items like a swimming pool, are taken into consideration and the value adjusted accordingly.

BROKER PRICE OPINION

The Broker Price Opinion (BPO) is another type of estimate, produced by a Real Estate Broker in response to a request from a mortgage lender.

A few years ago, when real estate sales around the country were at their peak, lenders found it difficult to handle the staggering number of transactions. The BPO concept was born. It is less elaborate, and thus less costly, than an appraisal, but more involved than a CMA. There are two kinds of BPOs: drive-by and interior. If the agent has access to the interior of your home, you will obtain a more in-depth and accurate evaluation. No matter your circumstances, you’ll obviously want top dollar from the sale of your home. Therefore, it is crucial to get a reliable evaluation generated by a Realtor®, who will stand by his/her appraisal throughout the sale process.

THE COST APPROACH

The cost approach is based upon what it would cost to reproduce your home new, minus depreciation and obsolescence. Would any person buy the property for a cost greater than the value of the land and a structure with equal appeal?

PROFESSIONAL APPRAISAL

A professional appraisal for the valuation of marital property is required when a court is dividing the couple’s assets. Some provinces require a judge to independently determine the fair market value. There are some circumstances in which a judge may consider information provided by a spouse. You should understand that when a valuation is determined, it may not include latent cost-related issues. If there are plumbing problems under the foundation or the structure has been compromised by a termite infestation, these situations will affect the sale price. It is advisable to have a home inspection conducted in an all-encompassing examination of the condition of the home. It will be invaluable in discovering the universal condition of the home.

The inspection will cover electrical wiring, plumbing, roofing, insulation, as well as structural features and could uncover issues invisible on the surface. This will give you a realistic idea of what to expect when you sell your home. Most buyers require home inspections to eliminate any questions regarding your home’s integrity. Typically, a buyer will order and pay for a home inspection. However, doing this yourself in advance offers two advantages: 1. Both spouses are made aware of any underlying problems with the home, and arrangements can be made to split the cost of repairs. 2. Buyers who are interested in the home will have an additional layer of security in knowing the integrity of the home, without having to put out the money themselves for the inspection. It may cost you a few hundred dollars upfront, but buyers appreciate having this information available, and that goes a long way toward building a relationship of trust and willingness to do business.

FINDING THE RIGHT REALTOR®

Choosing the right listing agent is important. As obvious as this might seem, selecting the best real estate agent for you can be difficult. Most people personally know a Real Estate Agent, but don’t jump headlong into working with friends who 1) may not be experienced at working with couples in the midst of divorce or 2) may not be impartial to both spouses.

There are Realtors® who focus specifically on helping people who

are going through a divorce. They are known as Real Estate Divorce Specialists. These agents have been thoroughly trained in legal and tax aspects of divorce. If the house is handled improperly during the divorce, the result could be that one or both spouses end up ineligible to qualify for a mortgage for many years. A Real Estate professional experienced in the divorce niche can provide clients with step-by-step guidance to protect themselves legally and financially. What defines a “good” Real Estate Broker ? That often depends on your particular circumstances. For someone selling a home during a divorce, it means finding someone with experience dealing with divorcing couples and who is an expert negotiator — Not only between seller and buyer, but between seller and seller, who are not always on the same page or even on speaking terms with each other. Some Realtors® prefer not to take on listings with divorcing couples because the process is often more complex and labor-intensive than a standard real estate transaction. Not every real estate agent is equipped to handle the complexity of property issues that come with the division. Most of all, you have to like your agent. You might be spending a lot of time with him or her over the next few months. This has to be a person who is calm, cool, and collected, is sensitive to the circumstances, and can move your home, no matter the current market. He or she must relate well with both spouses and cannot show any bias or judgment. You want someone whom you feel listens to your priorities, is patient with the situation, and can be trusted to deal fairly and communicate fully with both parties. The best Realtor® is one who will work effectively with both parties, despite conflicts of interest and strong emotions coming from both sides. An experienced Realtor® won’t run at the first sign of an emotional outburst, shy away from awkward meetings between soon-to-be exes, or hold exclusive meetings with one party over the other and will instead provide a neutral ground

for interactions. Be sure your Realtor® keeps the details of your divorce out of sales conversations, since some buyers equate divorce with “desperate to sell” and will attempt to leverage that information in negotiations to get a lower price. You don’t have to seek out a certified Real Estate Divorce Specialist, but when you look for a Realtor®, don’t be shy about asking questions about their experience working with divorcing couples. You must be able to wholeheartedly trust your Realtor®. Listen to how they talk about previous clients. This is usually an accurate indicator of how you will be treated. Look for discretion and empathy. Most Realtors® work with buyers and sellers who don’t know each other, not with divorcing couples who may or may not be adversarial with one another. The best Realtor® for you will be impartial and understand the complex nature of divorce. Make sure you pick a good listener. No two divorces are alike, and your Realtor® should be able to help sell your home without taking sides. Some Realtors® are trained in mediation. Since you and your spouse will both be involved in the selling process, look for an exceptional communicator who knows how to keep everyone on the same wavelength. Suitable agents are focused on being objective and are unaffected by emotional outbursts from either party. Not only do you want a Realtor® with divorce experience who is a good listener/communicator, you also want one who is genuinely concerned about your situation. They should show an interest in helping both parties experience a quick and strong rebound in their finances. They should also be knowledgeable about the local market, in order to price your home correctly from the start.

Here are some traits to look for when hiring an agent.

• Listing price to sale price ratio —What is their success

rate for sales? • Current — Is the agent up-to-date with the latest housing trends so he/she can serve you effectively? • Connected — Does the agent belong to a network with the necessary contacts to assist in every phase of the sales? This network should include home inspectors, quality service-people, other brokers, and county officials. • Knowledgeable — Is the agent familiar with the current market and able to price your home strategically? Does s/ he know the unique features of your neighbourhood to distinguish your home from the competition? Does s/he know what to highlight in your area to attract buyers? • Organized — An agent must pay close attention to your specific needs, communicate well, and be quick to follow leads. • Personable — An agent who is sincerely interested in helping you will go the extra mile with a smile. They must be able to sell themselves to you, as well as sell your home to a buyer. • Passionate — Some agents treat their job like a hobby or just a way to earn extra income. Find an agent who is passionate about what they do and loves their job. • Firm — Successful agents possess a strong work ethic. They are efficient and take advantage of time-saving tools that help sell your home. • Honest — Professional real estate agents build their reputation on high standards of business practices. • Self-motivated — Real estate agents are commission-only business people. Successful agents work hard because what benefits their clients benefits them. • Creative — Sometimes it takes creativity to properly

showcase a home, develop engaging content, and negotiate a sale. An agent who can quickly address any marketing need is an asset to you. • Tech-savvy — Agents well-versed in the latest technology for marketing homes should have a website, social media setup, user-friendly home search options, and quality presentations online with high-resolution images of homes, as well as videos and slideshows. A professional Realtor® has to wear many hats. They must be proficient in marketing, negotiation, consultation, the legalities of real estate, property taxes, and, most of all, gaining the trust of their clients. It is to your advantage to hire an agent who understands your unique needs while you work through your divorce. Once you’ve selected your Realtor®, remember not to take out your stress and anger on him or her. He or she has nothing to do with the divorce and is trying to help you. Take his or her advice. They are the professionals and know more than you do about selling your home. The following parts of the book are a helpful guide on how to present your home in the best light and how to avoid costly mistakes, especially when it comes to negotiating.

CHAPTER 4 Separation And Divorce Q&A

What does separation mean?

Separation means that one person has left a relationship or a marriage with the intention of ending the relationship.

What Is The Separation Agreements?

A separation agreement is a mutual understanding between spouses who are separated. It is usually a written agreement that both partners sign after getting independent legal advice (meaning each partner sees his/her own lawyer). It includes the couple’s arrangements for matters such as spousal support, division of property, custody and child support. Most separation agreements can be filed with the court for the purpose of enforcement of support

Will a court always accept a separation agreement?

The court will usually accept a separation agreement unless it discovers that: • One spouse was forced to sign the agreement; • One spouse tried to defraud the other by making false statements or • hiding assets; • The agreement does not make appropriate provisions for

child support;

or • The spouses did not consult separate lawyers.

Do I need a lawyer for a separation agreement?

You should see each see a different lawyer about the separation agreement. Seeing your own lawyer is called getting independent legal advice. The same lawyer should not advise two people with different interests. If you do not receive independent legal advice, you may not be aware of all of your rights and your agreement may not stand up in court. Your lawyer will explain how the agreement may affect you. If your lawyer advises you not to sign, that is not just a suggestion. It is a serious warning. Do we have to live in different homes to be considered “ separated ”? No, it is possible for people to live in the same house or apartment and yet live separately if each person leads an independent life. You must no longer perform any functions normally expected of a married couple such as eating and socializing together. This includes having separate bedrooms and not having sexual relations.

Do we both have to agree to the separation?

Both people do not have to agree to the separation. When one person leaves a relationship with the intention of ending the relationship, the couple is then separated, whether the other person wants to be separated or not. 22

How do I get a “legal separation”?

As soon as you are no longer living together, you are considered separated. You need not take any further action to make it “legal”. Many people think they must get a court order to be “legally” separated. This is not the case. The law does not require you to have an agreement or a court order to be legally separated. Eventually you will need to work out family law matters such as child custody and access (if you have children), child and spousal support, division of property and rights to pensions. This usually means you will need a written agreement or court order for these family law matters. If you were legally married and want to end all your rights and obligations as a married person, you will have to apply to the court for a divorce to do.

What is "Custody" And "Access"

Custody means having the care and control of a child. During a relationship, children are in the custody of both parents unless there is a court order or written agreement otherwise. When a couple separates, the parents need to decide on arrangements for the care of the children. The parents may agree in a separation agreement or a consent order that the custody, care and physical control of the children will be the responsibility of one parent, or be shared by both parents. A parent who does not have custody of the child would generally have the right to reasonable access to the child. If parents cannot agree, either of them can apply to the court for an order setting out custody and/or access. There is no waiting period to apply for custody. A court can grant a custody order at any time after a separation. The court must consider only the best interests of the child. The court will not consider past conduct, including abuse, unless the conduct is relevant to the person’s ability to act as a parent. The court

must give a child as much contact as possible with both parents if the contact is in the child’s best interests. The court must consider whether a parent who wants custody is willing to encourage contact with the other parent for the child’s benefit.

Child Support & How Do I Calculate It?

Both parents have an obligation to support their children financially, according to each parent’s income. When parents separate, the parent with custody usually receives child support payments from the other parent for the children’s financial needs. Child support amounts are determined according to the Federal Child Support Guidelines , which have tables for each province and territory in Canada. You should use the table for the province in which the paying parent lives.

When child support ends?

Child support usually continues as long as the child is a dependant. This can be until the child reaches the age of majority on his/her 19th birthday. A judge may also order that child support continue for a longer period if necessary, for example, if the child is attending university or has a disability that prevents him or her from being self supporting.

What Is Spousal Support?

Spousal support is money that is paid by one spouse to the other spouse after the relationship has ended. It is sometimes called alimony or maintenance. Spouses are not automatically entitled to receive spousal support. To decide if you should get spousal support, a judge will look at several factors including:

• Length of the relationship

• Age of both parties • Education of both parties • Income levels of both parties • Net worth of both parties

• Employment history of both parties • Financial consequences of separation • Was one person financially dependent on the • other during the relationship

Calculating spousal support: Justice Canada has released a set of guidelines entitled the Spousal Support Advisory Guidelines (SSAG). They are intended to simplify the process of calculating spousal support amounts. They were developed to assist lawyers, judges and individuals wanting to estimate spousal support. They include formulas for estimating spousal support – the formulas involve calculations that take into account different factors, including whether there are children of the marriage, both parties’ income, the length of the relationship, etc. There are no “tables” for you to use to calculate spousal support.

What Is Common-law relationships and spousal support?

Under the Family Services Act, if you have been living in a family situation with another person for three years, or for one year if you had a child together during that time, you may be entitled to support as a dependent. A judge will decide about spousal support by considering the same factors used when married couples divorce (i.e. how long you lived together, how dependent you are on your partner, your income, etc.). However, an ex-common-law partner must make the application for support within one year of separation.

How Division of Property and Debts Works?

Under the Marital Property Act, when married spouses separate 25

or divorce, each spouse is entitled to an equal share of the marital property, and each spouse is responsible for an equal share of the marital debts, except in certain special circumstances. The most common types of marital property are the marital home, household goods, money, personal investments, automobiles and recreational vehicles. Marital debts can include financial obligations that were incurred by either spouse during the marriage, including debts like mortgages, car loans, credit card bills, lines of credit, etc. You can divide your marital property after separation. If you cannot agree, you can apply to the court for a division of your marital property. You do not need to be divorced to divide your property. If you are legally married and you wait until after you get divorced, you only have 60 days to apply for a division of marital property from the date that your divorce takes effect. In exceptional situations, you can ask the court to give you more time to apply.

What is matrimonial property?

Matrimonial property is all of the property that accumulates during a marriage. This kind of property will usually be divided equally between the spouses. Debt that has accumulated over the marriage is usually shared equally too.

What law deals with division of property?

The Matrimonial Property Act is the law in Ontario that sets out how property will be divided if the marriage breaks down. The Matrimonial Property Act only applies to people who have been legally married. The Matrimonial Property Act gives a couple the option of coming up with their own property settlement instead of going to court. what are the timelines under the matrimonial property act to divide the property?

Separated but not divorced 2 years from the separation date OR you must start divorce proceedings.

Divorced 2 years from the date of the Divorce Judgment

Giving away or selling property to defeat a Matrimonial Property Act claim 1 year from the date the property was sold or given away Dead 6 months from the grant of probate, but only if you could have started an action right before your spouse died

Who lives in the house while the property is being divided?

If the spouses cannot come to an agreement about who will live in the property, then a judge can make an order giving one spouse the right to live in the matrimonial home and use the household goods When making this kind of order, the judge will think about: • the availability of other places to live within the financial means of both the spouses; • the needs of the children who live in the matrimonial home; • the financial positions of the spouses; and • any court order that relates to financial support or property division.

How does property division work for married people?

Step 1: Make a list of all of the property that you own

You should include all of the property that you own in your list. This includes property and assets that you owned prior to the marriage, during the marriage, and after the separation. You should also include any property that is located outside of

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