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Division of property

in an Ontario divorce

Protecting your financial interests in a divorce requires careful planning and execution. It is essential to discuss your specific circumstances with a lawyer experienced in family law before making any decisions.

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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.

Exceptions

What is Excluded from Equalization Payment Calculations?

There are some exceptions that allow one spouse to keep property they own. This is called excluded property. Examples include:
- property that you received as a gift from someone other than your spouse 
- property that you received as an inheritance
- damages or compensation from a personal injury claim
- proceeds or benefits from a life insurance policy payable upon the death of the insured
- property that spouses have agreed to exclude through an agreement
​​​​​​​- unadjusted pensionable earnings under the Canada Pension Plan

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How does division of property differ for common-law couples?

Unlike married couples, common-law couples in Ontario are not entitled to the equalization of their family property.

Each partner in a common-law relationship is only entitled to what he/she brought into the relationship or acquired during it. However, you may have rights to receive a division of assets through legal principles known as constructive trust, resulting trust, and/or quantum meruit. These are complex legal principles that require the expert help of a lawyer experienced in family law.In basic terms, the value of any property acquired during your marriage and that you still have when you separate must be divided equally.​​​​​

Is property divided equally if one spouse cheated?  ​​​​​​​

Ontario family law provides for a “no-fault” approach to divorce. In basic terms, that means that the reason the parties are divorcing is not a factor considered by the court when dividing property or assets. Therefore, the conduct of the spouses – including issues of adultery or cruelty – will not affect a spouse’s entitlement to property or assets.  

How does Ontario divide debt?

The Family Law Act only assigns you the debts in your name in a separation or divorce. That means each person is individually liable only for the debts in his or her name alone. If you and your spouse share a debt, both parties will be jointly responsible for the debt after the dissolution of the marriage.

Do I need a lawyer to assist with property division? ​​​​​​​

Equalization of net family property is one of the most important – and often contentious – property-related issues that must be dealt with upon the breakdown of a relationship.  It is vital to get legal advice about your specific circumstances from a family lawyer experienced in property division.

Request a Consultation Now!

Ensuring a fair and equitable division of property during a marriage can be a challenging task. Our qualified team of lawyers can help you navigate the legal process and provide you with the legal advice and guidance you need every step of the way. Request a consultation now!


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Khan Law is a boutique law practice that has been providing legal services to the Greater Toronto Area since the year 2000.

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