Answering Common Questions About Property Division During a Divorce

Are you going through a divorce? 

You're probably wondering how your stuff will get divvied up. It's a tricky process that leaves many couples scratching their heads. From the family home to retirement accounts, figuring out who gets what can feel overwhelming. 

But don't worry - you're not alone in feeling confused about property division. 

Lots of soon-to-be exes have the same questions swirling around in their minds. In this article, we'll walk through some of the most common head-scratchers about splitting assets during a divorce in Canada. 

By the end, you'll have a better grasp on what to expect as you and your partner untangle your shared life together.

What is Considered Property in a Divorce in Ontario?

When you're going through a divorce in Ontario, understanding what counts as property can be a bit tricky. 

Let's break it down for you.

Marital Assets: The Basics

In Ontario, marital assets are typically split 50/50 between spouses. But here's the kicker: physical property isn't always included in this equation. 

For example, that comfy couch you bought together? That's a marital asset. But the family cottage that's been in your partner's family for generations? That might be a different story.

Household Items: More Than Just Stuff

Think about all the things you've acquired during your marriage. That fancy coffee maker you splurged on last Christmas? The artwork you picked up on your honeymoon? 

These household items are generally considered marital assets. It's not just about the big-ticket items; even smaller purchases can fall into this category.

Gifts: A Special Case

Now, here's where things get interesting. In Ontario, gifts are often treated differently from other marital property. 

That gorgeous watch your spouse gave you for your anniversary? Or the heirloom jewelry passed down from your grandmother? These items are usually considered separate from marital property during property division.

As you know every situation is unique. While these guidelines give you a general idea, it's always best to consult with a legal professional to understand how they apply to your specific circumstances.

How is Property Divided During Divorce Proceedings in Ontario?

In Ontario, property division during divorce follows a specific set of rules. Here are a few things to consider.

Equal Division of Assets

When you're going through a divorce in Ontario, the law says that property acquired during your marriage must be split equally. This doesn't mean you'll be divvying up every single item, though. 

Instead, it's about the overall value of what you've gained while married.

Net Family Property

Here's where things get a bit mathy. The courts look at something called "net family property." 

This is basically the increase in the value of your assets from the day you got married to the day you separated. 

If one spouse's net family property is higher, they might need to pay the other spouse to even things out.

Types of Property Considered

Not all property is treated the same way. Your family home, for instance, is usually split 50/50, regardless of who owned it before marriage. But things like inheritances or gifts from third parties might be treated differently.

Getting Help

Going through property division can be tricky. That's where a professional family lawyer comes in handy. They can help you understand your rights, figure out what's considered marital property, and ensure you're getting a fair shake in the division process.

Remember, every situation is unique. While these are the general rules, your specific circumstances might lead to different outcomes.

Valuing Assets and Debts

When it comes to property division during a divorce, one of the first steps is figuring out what everything's worth. It's not as simple as looking up prices online or guessing based on what you paid years ago.

Appraisals and Fair Market Value

Professional appraisals are often required to determine the fair market value of major assets like your home, vehicles, or valuable collections. These experts look at current market conditions and comparable sales to give an unbiased estimate. 

For example, your house might be worth more (or less) than you think due to recent neighborhood developments or market trends.

Timing Is Everything

The tricky part? The value of some assets can change quickly. 

Stocks, businesses, and even real estate can fluctuate in value from month to month. That's why courts typically require valuing market-driven assets at the time of dissolution. 

It helps ensure a fair split based on current values, not outdated estimates.

Debts Matter Too

Don't forget about debts! 

Credit card balances, mortgages, and loans are part of the financial picture. These need to be valued and divided just like assets. Sometimes, couples are surprised to learn about hidden debts or forgotten accounts during this process.

Getting accurate valuations might seem like a hassle, but it's a necessary step. It lays the groundwork for a fair division and helps avoid disputes down the road.

Factors That Influence Property Division During a Divorce in Ontario

In Ontario, dividing property during a divorce can be complicated due to several key factors. Let's take a closer look at what the courts consider.

Length of the Marriage

The duration of your marriage plays a big role. If you've been married for decades, you'll likely see a more equal split. 

For shorter marriages, the division might lean towards what each person brought into the relationship.

Financial Contributions

Your wallet matters, but perhaps not in the way you'd expect. The courts look at both financial and non-financial contributions. 

So while your paycheque counts, so does the stay-at-home parent's work.

Lifestyle During Marriage

The standard of living you maintained while married is another piece of the puzzle. If you live largely, the courts aim to keep both parties in a similar lifestyle post-divorce, within reason of course.

Remember, these factors aren't set in stone. Each divorce is different, and the courts try to find a fair solution based on your specific situation. It's not always a 50-50 split, and that's okay. The goal is to reach an arrangement that works for both parties in the long run.

FAQs About Property Division in Divorce in Ontario

Who Gets to Stay in the House After the Divorce?

In Ontario, there's no hard and fast rule about who stays in the family home post-divorce. It often boils down to what you and your partner can agree on. Sometimes, one person buys out the other's share. Other times, you might decide to sell and split the proceeds. 

If you've got kids, their needs usually take priority. There are also some cases where parents take turns living in the house to maintain stability for the children.

How long does it take to get a divorce in Ontario?

The short answer? It depends. If you're filing on the grounds of separation, you'll need to live apart for at least a year. After that, the actual divorce process can take anywhere from 4 to 6 months. But here's the kicker - sorting out property division can stretch this timeline. 

Some couples wrapped everything up in 18 months, while others took years to iron out all the details.

Do you need a family lawyer for divorce in Ontario?

While it's not legally required, having a family lawyer Ontario can be a game-changer. They'll guide you through the property division process, making sure you don't overlook anything important. 

They can help you understand any sticky situations that pop up. That said, if you and your partner are on good terms and your finances are straightforward, you might be able to handle things yourselves. 

Just remember, a little professional advice can go a long way in protecting your interests.

These were the basics of property division during a divorce. Every situation is unique, and laws can vary. While this info gives you a starting point, it's always smart to chat with a lawyer who knows the details of Canadian divorce law. They'll help you figure out the best path forward for your specific case.

Divorce isn't easy, but understanding how property division works can take some of the stress off your plate. Take it one step at a time, lean on your support system, and know that you'll get through this.