Rules Regarding Sale of Residential Immovables

Rules Regarding Sale of Residential Immovables

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When a marriage doesn’t work out, the process of divorce can be complicated.  The couple, of course, would have collected property together no matter the duration of the relationship.  However, when a couple has been together long enough, they will have acquired something called “Immovable Property” which is not easy to simply split when the couple goes their separate ways.

What is Immovable Property?

A Real estate lawyer in Montreal, Qc would define the term “Immovable Property” as, basically, anything that can be owned or possessed by the couple but cannot be moved without destroying or altering it.  Mainly, this term applies to a home or residence, a property fixed to the earth. This could be a home, of course, but also simply be a plot of land.

Property and Divorce

Typically, in a divorce, the couple will have to decide how they want to split their collective property. These are often known as “assets.”  So, one partner might take the bedroom furniture while the other might take the furniture from the living room. If there are two cars they each might take one.  A divorce hearing will oversee the partitioning of this property.

In the case of “immovable property,” however, it is more likely that the divorce will result in having to sell off the property and split the profit.  Residential immovables describe, basically, a personal/family residence. However, “immovables” can also refer to industrial or professional property and whatever machinery, furniture, or other belongings which go along with the property (like a factory or an office building or rental property).

Immovable Property Sale and Capital Gains

The sale of a home results in something called “capital gains.” Capital gains is, for lack of a better word, profit. When you sell a home (or piece of land) it will bring you capital and that capital qualifies as a gain.  And when you earn a capital gain, you may also be subject to capital gains taxes. Quite simply these are taxes you pay on the sale of your home.  After the sale of this property both parties will have to calculate the payment of these capital gains and the associated taxes, but there many exclusions and terms that you need to know.

Get more acquainted with these terms in your province or territory if this is avenue you will consider in an upcoming divorce.

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