How is property divided in a divorce?
In Ontario, when a marriage ends, the contributions of each spouse are recognized. This means that any property acquired during the marriage and still held at the time of separation must be divided equally.
Property that you brought into the marriage is generally considered yours to keep in case of a marriage breakdown. However, any increase in the value of this property during the marriage may need to be shared.
An exception to this rule is the matrimonial home. By law, the full value of the matrimonial home must be shared between spouses, even if one spouse owned the home before the marriage or if it was received as a gift or inheritance.
This process is known as equalization of net family property and aims to balance the increase in each spouse's net worth from the date of marriage to the date of separation, so that both spouses can leave the marriage with relatively equal assets.