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Property Division in Ontario

Dividing Property Under the Family Law Act

Ontario law governs equalization and property division for married spouses through net family property calculations under the Family Law Act.

How Property Is Divided After Separation

In Ontario, property division for married spouses is based on the principle of equalization of net family property, not a 50/50 split of each asset. Each spouse keeps property in their own name, but the spouse with the higher net family property pays an equalization payment to the other.

Governing Legislation

Property division for married spouses is governed by the Family Law Act (Ontario). The Act sets out how net family property is calculated, including assets, debts, exclusions, and deductions.

What Is Net Family Property?

Net family property generally includes all assets and debts owned on the date of separation, minus debts and the value of property brought into the marriage. Certain assets may be excluded, such as inheritances or gifts received during the marriage, unless they are placed into a matrimonial home.

The Matrimonial Home

The matrimonial home is treated differently under Ontario law. Both spouses have an equal right to possession, regardless of ownership, and its full value is usually included in net family property, even if owned by one spouse before marriage.

When Property Division Can Be Unequal

In limited circumstances, the court may order an unequal division if equalization would be unconscionable, based on factors set out in the Family Law Act.

Legal Help With Property Division

A family lawyer can help identify assets and debts, determine the correct separation date, calculate equalization, and negotiate or litigate fair property settlements.