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Matrimonial Home or Not?

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  • Matrimonial Home or Not?

    Matrimonial home, or not? A $500,000 question

    A couple can have more than one home considered as a matrimonial home, as long as they use it with their family during the year. So if you have a home in the city, a summer home and a chalet for skiing, all three can be considered matrimonial homes and the same rules apply to each property.
    However, let’s say you bought a home and then got married. On the date you got married, the house was worth $300,000. You lived in it for five years as your matrimonial home, but then you bought a second house that you moved into together. The first house is now used as a rental. It is still in your name.
    While you will own the second home together as a matrimonial home, the first house will no longer be considered a matrimonial home. Therefore, if you later split, you will still be able to get credit for the full $300,000 that your house was worth on the date of the marriage, and you will only have to split the gain with your spouse.
    An interesting situation and an interesting article. An important point in the article, if a second home is bought during the marriage, the first home is no longer considered the matimonial home.

  • #2
    I would think you would defer to CRA regulations which are pretty specific about revenue property vs primary residence. I could be wrong though and this might just apply to taxation issues.

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