When divorcing in BC, couples typically sell their home and split the profits after paying off the mortgage. The process involves setting a fair price, listing the property, and agreeing on the best offer. Legal guidance helps ensure fair division and a smooth sale.

When homeowners divorce, they must decide what to do with their home. Asset division is almost always a given of a divorce. For homeowners, that involves dealing with the house. A divorcing couple has three clear options.

Option One: Sell the Home

The most simple approach: is to sell the home and split the profit. This is the most common choice for most couples when they split up.  Both partners sign a listing agreement. Both pay the single realtor fee. The realtor works on behalf of both partners to satisfy their collective desire to liquidate the home.

It’s common for both partners to move out and obtain housing otherwise. Often, if the couple have kids, the primary caregiver will retain the house until the sale, while the other partner lives on their own. When the home clears, the profits are split between both partners after the balance of the mortgage is settled up.

A realtor helps to set a fair price. He handles showings and manages offers as they come in. When the offers come in, the couple will need to work together to agree to the best offer in terms of closing date, sale price and the other aspects of a given offer. A realtor will work with the couple to set the price of the home compared to other properties of a similar house age, size, rooms, lot size, etc.. There are no apple-to-apples comparisons in house sales. Likewise, the market is perpetually moving. What a comparable property sold for three months ago may not fetch the same price possible today. Again: an experienced realtor will set a realistic and attainable price target.

Steps to Sell Your Home During Divorce

• Agree to sell and sign listing agreement
• Set market price with realtor
• Prepare the home for showings
• Review and agree on offers
• Split profits after closing

A quick close can allow the couple to untie the knot quickly, but if one of the partners and the extended family are still in the home, it could make the exit hectic. A longer close could both be a hard won concession and it will draw out the conclusion of the sale. It’s important to weigh out the pros and cons.  Dale Sheppard has been a part of over 1600 home sales. If a couple wants to talk about selling their home, contact Dale.

Option Two: One partner Keeps the Home

Simply put: one partner keeps the home. The other partner moves out. In most cases, there is still a mortgage. The partner who remains must show their bank that they can carry the mortgage alone. That can be a big hurdle to clear. Lenders in British Columbia will check income, credit, debts, and current mortgage rules. If the lender agrees, the partner who stays must refinance the mortgage in their own name.

A buyout requires a fair value for the property. Most couples hire a certified appraiser to set this value. The appraisal helps both people see the worth of the home and the size of the buyout.

A buyout usually works like this:

• The home is appraised.
• The remaining equity is calculated.
• Each spouse’s share is confirmed.
• The partner keeping the home refinances the mortgage and pays the other spouse their share.

Legal advice is important in British Columbia because property division rules can affect the share each partner receives. A lawyer can confirm rights under the Family Law Act, explain how exemptions work, and prepare the required separation agreement. This agreement often must be completed before lenders approve the refinance.

The partner who takes the home gains stability and keeps a familiar place. They also take on full responsibility for all costs. This includes mortgage payments, taxes, insurance, repairs, and any future market changes. They also lose the benefit of the other spouse’s income.

A buyout works best when:

• One spouse can qualify for the mortgage.
• Both people agree on the value.
• The buyout amount is clear.
• The refinancing process moves smoothly.

If the partner staying cannot qualify for a new mortgage, the buyout may not be possible, and the couple may need to sell the home. Couples often compare both options before making a final choice.

For many people in British Columbia, this option offers a clear path forward after a separation. It allows one spouse to keep the home while giving the other spouse a fair share of its value.

Option Three: Rent the Home  

Both people stay on title. You keep ownership and turn the home into a rental.
You lease the home to tenants and collect rent. You share the income based on your agreement.
You also share the costs. This includes mortgage payments, taxes, insurance, repairs, and property management fees.

Many couples choose this option when they want to delay a sale. Some wait for a stronger market. Others want to reduce disruption for children. The decision must be mutual. If one person disagrees, this option will not work.

Shared ownership after separation adds pressure. You must agree on money, repairs, access, and timing. You must respond to tenant issues. You must share decisions that affect the value of the home. This option requires steady communication. It also delays a full financial break, which some people find difficult.

Your Responsibilities in British Columbia

If you keep a home together after separation in British Columbia, you follow clear steps:

• The estranged couple will need to tell your lender about the separation. Lenders require updated information about who is responsible for payments.
• Update the land title through the Land Title and Survey Authority of BC if legal changes are needed. For example, post divorce, some people go back to their pre-married names and the title would need to reflect that.
• The partners set clear rules for how to split mortgage payments, taxes, insurance, utilities, repairs, and rental income.
• Both partners need to keep the home in good condition. This protects equity and prevents disputes about maintenance.
• The terms need to be spelled out in a separation agreement. This agreement should guide all decisions, including how you choose tenants, how to handle vacancies, save for repairs, and decide when to sell– what circumstances would trigger a sale; and how to arrive at the decision to sell their home.

This option can protect long-term value, but it extends your financial link with your former partner. It works best for people who communicate clearly, keep records, and follow a written plan.

Which is the best approach?

It depends on your goals and what’s possible. Here’s a summary of the pros and cons:

The Financial, Lifestyle, Property and Housing Opportunities That Come With A Divorce

• A divorce can lead to one or both spouses getting a smaller and easier to manage home; or a condo.
• The proceeds of a house sale could eliminate personal debt.
• The sale of a home could allow a person to move to a more affordable community. Victoria has a bad reputation for being some of the most expensive communities in Canada. Up-island, there may be more affordable housing waiting for a newly divorced person looking for a fresh start.

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This isn’t a decision to take lightly. Your home provides stability and shelter – selling it changes your entire financial picture. But for some people in specific situations, it can make strategic sense.

The Equity Equation

Victoria’s housing market has been a strong performer. If you bought a home even a decade ago, your equity may have grown dramatically. As of 2025, single-family homes in the Victoria core average over $1.3 million. That means even modest homes may have six figures of untapped equity.

But there’s a key distinction: equity isn’t cash. It’s tied up in your home. To access it, you either need to sell, refinance, or use a home equity line of credit (HELOC) or reverse mortgage.

When Selling Actually Makes Sense

Selling your home to access the cash value makes sense in specific life scenarios:

• You’re relocating permanently, either for work, family, or lifestyle.

• You’re retiring and ready to rent — not temporarily, but as a long-term choice.

• You’ve inherited another property and no longer need your current home.

• You’re downsizing to reduce maintenance or housing costs.

In these cases, unlocking your equity can fund your next chapter. But ask the hard question: Where will you live next — and at what cost?

The Real Financial Picture

Yes, Victoria real estate has performed well. Yes, you might get a good price in the current market. But selling comes with costs: realtor fees, legal fees, moving expenses, and often higher ongoing housing costs.

Selling a home isn’t free money. Here are some real-world financial impacts to consider:

• Selling costs: Realtor commissions, legal fees, moving expenses, staging costs, and possible capital gains (if the home isn’t your primary residence).

• Renting after selling: Monthly rent may exceed your current mortgage, taxes, and maintenance — especially in Victoria’s high-demand rental market.

• Lost tax advantages: Home ownership often comes with tax benefits that renting doesn’t.

If you’re planning to rent after selling, compare your current total housing costs (mortgage, taxes, insurance, maintenance) to local rental prices. In Victoria’s rental market, you might find your monthly housing costs actually increase while losing the tax advantages of ownership.

The numbers matter. Do the math before you make the move.

What About the Future?

Consider where you’ll be in 10 years. Will you want to buy again? Re-entering the housing market later can be expensive, especially if prices continue rising. At that point, you’re competing with current market prices without the benefit of years of equity building.

If health issues or mobility concerns factor into your decision, those are legitimate considerations. But make sure you’re solving the right problem – sometimes modifying your current home makes more sense than selling it.

The Risks Nobody Talks About

Cashing out your home equity removes your hedge against inflation and housing market appreciation. If you sell and spend the money on consumption (travel, cars, lifestyle), that wealth is gone permanently.

There’s also the psychological factor. Many people underestimate how much financial security homeownership provides, even when the house needs maintenance or feels like a burden.

Making a Smart Decision

If you’re seriously considering this move, start with hard numbers. What would you net from the sale after all costs? Where would you live, and what would that cost monthly? How would this change your long-term financial picture?

Consider alternatives too. A home equity line of credit might give you access to some cash without giving up ownership. Downsizing to a smaller property might free up equity while keeping you in the housing market.

The Bottom Line

Selling your home to unlock equity can make sense — but only in specific, carefully considered situations. Before taking that leap:

• Crunch the numbers: What will you net after selling costs?

• Understand your next move: Where will you live, and what will it cost?

• Think long-term: How will this affect your financial security 5, 10, or 20 years from now?

Don’t let market enthusiasm or lifestyle fantasies drive this decision. Think through the practical realities and long-term consequences.

Considering your options with your home equity? Let’s look at the real numbers for your situation and discuss whether selling makes financial sense for your specific circumstances.

The post When Selling Your Victoria Home Makes Financial Sense appeared first on Dale Sheppard.

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For a growing number of people, the answer is yes — and not out of necessity, but out of opportunity. With the help of a top Realtor in Victoria like Dale Sheppard, downsizing isn’t just about moving into a smaller space — it’s about gaining freedom, flexibility, and financial clarity.

What Downsizing Really Means

Let’s reframe the idea. Downsizing isn’t a loss — it’s a lifestyle upgrade. You spend less time on chores, fewer dollars on utilities, and zero stress on never-ending maintenance. That extra bedroom you haven’t used in years? It might be worth more as equity in your bank account.

Downsizing is also your chance to check your property value and turn your current home into a powerful asset for your next move. Whether you’re looking for a condo downtown, a townhome in Langford, or even a property with a mountain view, the Victoria real estate market offers options to match your new goals.

A Market That Works in Your Favour

In 2025, Victoria’s real estate market continues to be active. Over 761 properties sold in Greater Victoria in June 2025, marking a 15% increase year-over-year. It’s a stable environment — not overheated, not stagnant — where both buyers and sellers can make confident decisions.

If you own a detached home in the core, your home value may be around $1.3 million or more. Wondering what’s the real value of my home today? A free property estimate or a detailed home evaluation from a professional real estate agent like Dale Sheppard can reveal exactly what you’re working with — and how to make it work for you.

Want to calculate your home value now? Use Dale’s property value calculator or schedule a home valuation appointment today.

Life After the Move: Smaller Space, Bigger Possibilities

Yes, you’ll trade square footage for simplicity. Maybe no more garage workshop or sprawling yard. But here’s what you’ll gain:

• Lower property taxes, insurance, and utility bills

• Easier cleaning and maintenance

• A home tailored to your lifestyle, not your past

Many homeowners find they’re saving $2,000–$3,000 per month after downsizing. That’s real money you can invest in travel, family, retirement, or even commercial sales opportunities if you’re thinking of expanding your investment portfolio.

Where Will You Go? Let Victoria Guide You

Victoria has a wide range of downsizing options, and Dale Sheppard knows them all:

• Townhomes in Langford or View Royal

• Condos near Inner Harbour and downtown

• Low-maintenance living in Saanich or the Westshore

• Even acreage properties for those who still want room to breathe

Whether you’re looking for mountain view homes, something walkable, or something completely new, Dale can match your goals to the right location.

Why Work With Dale Sheppard?

Because downsizing is more than selling a property — it’s a transition. You need someone who understands both the emotional and financial aspects of the journey.

Dale Sheppard is a top realtor in Victoria and Westshore, with years of experience helping people just like you. His approach is practical, friendly, and focused on results. Whether you want to check your property value, understand your home price, or explore your buying options, Dale brings insight and professionalism every step of the way.

From Langford to Saanich, from View Royal to downtown, he’s the local expert who will get you moving — with confidence.

Get Started With a Free Home Evaluation

If you’re thinking, “I should check my property value,” you’re already on the right track. Reach out to Dale today for a free property estimate and a clear plan for what comes next.

No pressure. Just real numbers, expert guidance, and the confidence to decide what’s best for your future.

Downsizing? Sell your home with Dale Sheppard

If you’ve already decided that it’s time to downsize, get in touch and let’s look at what downsizing would actually mean for your finances and lifestyle.

The post Is It Time to Downsize? A Practical Look at Victoria’s Market appeared first on Dale Sheppard.

Unlike Vancouver with their souring prices, increased sales and increased building starts, Victoria is still lagging behind like most cities across Canada. Victoria had a small increase in sales in March, but still trails the 5 year average. Listing inventory has dropped slightly, but still only 1 in 8 homes are selling per month. Overall prices are down as well, but in most regions, the drops have been significantly higher than the statistics are showing. The saving grace so far has been continued low interest rates, combined with these lower prices, creating a fairly stable Victoria real estate market over the last few years.

When will the next upswing begin in Victoria? This is a good question. Sales should continue to increase this spring and prices will probably stay fairly stable, and the market will not change much in the coming months unless we see a significant reduction in the overall listing inventory this summer. If inventory remains high, which it probably will, then the market should remain the same for the rest of 2014 and into 2015. If listing inventories are significantly lower in the summer and fall, then the result could be a shift away from a buyer’s market towards a seller’s market, which usually creates the supply demand ratio for prices to slowly start increasing. And if sales also increase, then this supply demand effect always creates further upward pressures on pricing. Eventually this will happen, and the big question is still when. Most experts are not expecting this to begin in our region until 2015 or even as far out as early 2016. We will see. However, when it happens, it usually happens fast. In the meantime, there are still a lot of good real estate deals in Victoria.

This leads me to one investment scenario. There are some really good deals in the market if you are looking for a revenue property. I will give you an example of a condo that I currently have listed for sale on Bear Mountain. It is a small 1 bedroom listed for $176,800. As an investment property, you would need the required 20% down for a second property, as this is required if the purchase is not your principle residence. This would equate to about $35,000 down, plus about $5000 for closing costs. The mortgage would be about $140,000, and the monthly payment would be about $588 if you obtained a mortgage for 2.99% for a 5 year term, with a 30 year amortization period. The strata fees are $168 per month, and insurance is about $40 per month, and taxes are about $75 per month, for a total of about $870 per month. This condo rents right now for $900 per month. Based on these numbers, this condo would actually provide a small positive return, coupled with the fact that you have a tenant paying down your mortgage each month which lowers your principal amount owing on your mortgage. As a bonus, if real estate prices increase, you are further building your cash equity in your condo which leads to a substantial equity portfolio increase over the course of the 5 year mortgage term. This investment condo would actually work. There are a number of examples like this throughout Victoria, and it has been years since you could buy a property and not have a negative cash flow on a monthly basis, so this is a good thing.

However, low prices and low interest rates will not last, as history usually repeats itself, and during the course of a natural economic cycle, which usually lasts about 7-8 years, the markets usually turn in one direction or another. And as most experts are predicting we are slowly moving towards the end of the current slowdown which started in the summer of 2008, the next upturn could be arriving sooner than later. The US economy is showing improved numbers not seen since 2008, so this usually results in a positive spin for the Canadian economy as well. Once this begins, interest rates and prices usually start to increase, and the investment property example above would immediately have a negative monthly cash flow. For example, an increase in interest rates of .50 percent alone would increase the monthly mortgage payment in the above example to about $628, which is an extra $40 per month, which turns the above scenario into a monthly negative cash flow of about $10 per month. If prices go up 5%, the same happens above. These interest rate changes can happen overnight, and the price increase can also happen quickly once the market starts improving.

Having said all of the above, I think we are still about a year or so away from seeing interest rate or price increases, so there is still a good window of opportunity for real estate deals to be made. Again, we will see…

In the meantime, here a few few links to various real estate sources that may be of interest to you:

– To stay informed on my listings and local real estate information, click on this link and hit “like”: VictoriaBCProperties

– Click for details of my Spring Newsletter:  Newsletter

– For the latest historical statistics from the Victoria Real Estate Board, click here: VREBStatistics

– Search for listing at my Victoria BC Properties website: DaleSheppard.com

Have a great Spring and I will be in touch this summer for another update.

Dale.

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I am constantly asked by friends, family and clients – why did my assessment go up when prices have come down? Why did my assessment go down, but my neighbours went way up? How will this change affect my property taxes? Historically, assessments have been used not as a gauge for actual value, but for an average price to set your municipal or city property taxes to. Therefore, the assessed number should not be compared to actual real estate sale prices.  Nor should any percentage of average assessments be used to try and guess true market value. Every city will have a street or a block that is much higher in value to the one right beside it. Similarly, a neighbours house may be valued significantly different if the neighbourhood has a lot of homes that were built in different eras. Victoria, for instance, has a wide range of homes and styles dating back to the late 1800’s and early 1900’s, with a high number built around 1912, 1920-1930, 1945-65, and modern booms from the 1970’s until today. All of these house styles reflect slightly different assessed values, which can be quite frustrating for the home owner to analyze. On top of all of this, if a neighbour has completed a basement without a permit, then this space may not be calculated by the assessor, so the assessed value for a home like this may be significantly lower than it should be. 

The main area of concern for the home owner is the effect of assessments in the pocket book at the end of the day. Of course, higher assessments mean higher annual property taxes. This is a catch 22. If you are planning on selling your home, then a higher assessment will help you justify your list price, and may discourage buyers from trying to low ball your house, especially in a slow market like we are experiencing at this particular time. However, if you are not planning on moving, then the higher assessment can mean significantly higher taxes.

One thing to note, if the overall assessment averages increase, but the municipality or city is determined to keep taxes from increasing, then the municipality or city will adjust their mill rate, which is the number that is multiplied by your assessment to determine your annual property tax amount. This means that property taxes will not change much if your annual assessment change is within the regional average increase or decrease. Therefore, the only way that your taxes will be significantly altered is if your percentage change in your assessment is significantly out of the range of the average. For instance, if the average increase is 5%, and yours goes up 10%, you may have grounds to appeal your assessment.

The government does allow a home owner to appeal their assessments, if they feel that the assessed amount is significantly out of line with the average assessment percentage change. Therefore, at this time of the year, when all of the new assessments are arriving in the mail, before you decide whether to dispute your assessment, it might be worth looking at the pros and cons of a high assessment verse a low assessment if you are planning on moving during the current tax year.  Depending on your situation, making an appeal might be something worth considering. The initial appeal must be made to the property assessment review panel by January 31, 2012, and the final appeal deadline is April 30, 2012. Details can be found here: http://www.assessmentappeal.bc.ca/SubmitAnAppeal/. If you have any comments, questions or concerns about your property assessment, feel free to contact me anytime.

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