The Law on Property Division
- Governed by the Family Law Act (Ontario).
- Property is divided through a process called equalization of net family property.
- Each spouse calculates the value of assets owned at separation and deducts the value of assets owned at the date of marriage (with some exceptions).
- The spouse with the higher net family property owes the other spouse an equalization payment to balance the difference.
- The Family Law Act equalization rules do not apply.
- Common-law partners keep property in their own name.
- Claims are usually based on trust principles (resulting trust, constructive trust, or unjust enrichment).
The Matrimonial Home
Special rules apply to the matrimonial home (the family’s primary residence):
- Both spouses have an equal right to possess the home, regardless of ownership.
- A spouse cannot sell, mortgage, or dispose of the home without the other spouse’s consent or a court order.
- The entire value of the matrimonial home is shared upon separation — marriage-date deductions do not apply.
The Process
Step 1 — Financial Disclosure
Both spouses must provide full financial disclosure: tax returns, bank statements, real estate documents, pension valuations, and more.
Step 2 — Valuation
Assets and debts are valued as of the date of separation. Professional appraisals may be needed for homes, businesses, or pensions.
Step 3 — Calculating Net Family Property
- Value of assets at separation
- Minus debts at separation
- Minus value of property owned on date of marriage (with exceptions)
Step 4 — Equalization Payment
The spouse with the larger net family property pays the other spouse half the difference.
Step 5 — Court or Agreement
- Separation Agreements: Many couples resolve property division by agreement.
- Court Orders: If no agreement is reached, the court will order equalization and decide on any disputes.
How We Can Help
At GC Legal Support, we provide tailored advice and representation for property division matters, including:
Equalization Calculations
Ensuring assets and debts are accurately valued.
Matrimonial Home Issues
Protecting rights to possession and fair division.
Common-Law Claims
Pursuing or defending unjust enrichment or trust claims.
Business & Pension Valuations
Working with experts to assess complex assets.
Separation Agreements
Negotiating property settlements outside court.
Court Advocacy
Litigating property division when disputes cannot be resolved.
Frequently Asked Questions (FAQ)
All assets owned on the date of separation, including homes, vehicles, bank accounts, RRSPs, pensions, and business interests. Debts are also included.
Special rules apply. You cannot deduct its marriage-date value, and both spouses have equal rights to live in it until a separation agreement or court order says otherwise.
No. Common-law partners generally keep their own property. However, one partner may claim a share of the other’s property under unjust enrichment or constructive trust principles.
Yes. Debts such as mortgages, credit cards, and loans are included in calculating net family property.
Pensions are property under Ontario law. A spouse is entitled to share in the pension accrued during the marriage, valued by the pension plan administrator.
Full disclosure is mandatory. Courts can impose penalties or set aside agreements if assets are concealed.
Next Steps
Property division can be one of the most financially significant parts of separation. At GC Legal Support, we combine legal expertise with financial insight to protect your interests and ensure a fair resolution.
Prenup / Marriage Contract
A prenuptial agreement (often called a “prenup” or, in Ontario law, a marriage contract) is a written agreement between two people who are married or about to get married. It sets out how property, assets, debts, and sometimes spousal support will be handled if the relationship ends.
At GC Legal Support, we help couples plan ahead with fair, enforceable contracts that protect their financial interests and reduce future conflict.
Contact Us