Summary
When married spouses separate in Ontario, property is generally shared through an equalization of net family property: each spouse's growth in net worth during the marriage is compared, and the spouse with the larger amount usually pays the other half the difference. Common-law partners do not share property this way but may have trust claims. Jamal Family Law, in Oakville, helps clients in Oakville and across Halton with equalization, the matrimonial home, pension division, trust and joint family venture claims, and complex holdings such as family businesses.
How property division works
Each married spouse calculates a net family property: the value of what they own on the valuation date (usually the date of separation) minus their debts, and minus the net value of what they owned on the date of marriage. Some property is excluded, such as certain gifts and inheritances received from third parties during the marriage. The matrimonial home has special rules.
How Jamal Family Law helps
Our family law services include property division, pension division, trust claims and joint family venture claims, exclusive possession of the matrimonial home, sale of property, and preservation and non-depletion orders to protect assets during proceedings. We can help with family law matters that intersect with partnerships, business corporations and commercial issues. Fareen Jamal has assisted clients with significant assets, complex property protection needs, multi-jurisdictional holdings and interests in family businesses. See also separation agreements.
Property division: frequently asked questions
How is property divided between married spouses in Ontario?
Ontario does not usually divide each item of property. Instead, each spouse calculates their net family property, and the spouse with the higher amount generally pays the other an equalization payment of half the difference. A court can order an unequal division only in limited cases where an equal result would be unconscionable.
What is special about the matrimonial home?
Both married spouses have an equal right to live in the matrimonial home, no matter whose name is on title, until there is an agreement or court order. Neither spouse can sell or mortgage it without the other's consent. And if a spouse owned the home on the date of marriage and it is still the matrimonial home on separation, they generally cannot deduct its date-of-marriage value.
Do common-law partners share property when they separate?
Ontario's equalization rules apply only to married spouses. Common-law partners generally keep property in their own names, but a partner who contributed to property owned by the other may have a claim under trust law, such as unjust enrichment or a joint family venture. Jointly owned property is usually shared according to ownership.
What financial disclosure is required?
Both spouses must give full and honest financial disclosure. This usually includes a sworn financial statement, recent tax returns and notices of assessment, statements for bank, investment and pension accounts, and valuations of property such as a home or business. Pensions are valued and divided under the Family Law Act and the rules of the pension plan.
Is there a deadline to claim equalization?
Yes. An equalization claim generally must be started by the earliest of six years after separation, two years after a divorce is granted, or six months after the death of a spouse. A court can extend these limits only in limited circumstances.
This is general information about Ontario family law, not legal advice. Every situation is different. Speak with a lawyer about your circumstances.
Talk to us about property division
Contact us using the form below, and we'll get back to you as soon as possible!