What You Need to Know About Division of Property
Learn about the Division of Property
Table of Contents
What is Division of Property ?
When a marriage or common-law relationship ends, the division of property can be one of the most complex and emotionally charged aspects of separation. As a family lawyer in Ontario, I provide clear guidance and practical solutions to help clients understand their rights, protect their assets, and resolve property issues fairly and efficiently.
Understanding Property Division in Ontario :
In Ontario, property division is governed by the Family Law Act and applies differently depending on whether the parties were married or in a common-law relationship.
➤ For Married Spouses
Ontario follows the equalization of net family property for married spouses. This means that:
- Each spouse keeps the property in their own name.
- However, the increase in value of each spouse’s property during the marriage is calculated and equalized.
- The spouse with the higher net worth may owe an equalization payment to the other.
⚖️ The Matrimonial Home: Regardless of ownership, both spouses have an equal right to possess the matrimonial home upon separation as Special Rules apply.
➤ For Common-Law Spouses
Common-law partners do not have automatic property rights. Property is generally retained by the person who owns it. However, common-law spouses may have a claim in equity, such as for unjust enrichment or resulting trust, if they contributed financially or otherwise to property owned by the other.
What About Debts ?
Equalization also considers debts and liabilities. If a spouse accumulated debt during the marriage, that debt is subtracted from their total assets when calculating their net family property.
Excluded Property
Some property may be excluded from equalization, such as:
- Inheritances received during the marriage
- Gifts from third parties
- Personal injury settlements
These exclusions must be clearly proven with documents and careful valuation.
How Marlaw Can Help ?
Every financial situation is unique. I work closely with my clients to:
- Identify and value all marital and excluded assets
- Trace contributions to jointly held or disputed property
- Prepare Net Family Property Statements
- Negotiate fair settlements or represent you in court when necessary
- Draft or review Separation Agreements that protect your financial future
Whether your property division involves complex business assets, pensions, the family home, or high-conflict financial disputes, I offer knowledgeable, strategic, and results-driven legal representation.
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Frequently Asked Questions
We understand that the process can be confusing and you may have many questions.
Below are some common FAQs that can help guide you.
In Ontario, property division for married spouses is based on the principle of equalization of net family property. This means each spouse calculates the value of what they owned on the date of separation, subtracts what they brought into the marriage, and the difference (increase in value) is equalized. The spouse with the higher net value may owe an equalization payment to the other.
Not exactly. You don’t split each asset in half. Instead, the law aims for fairness through financial equalization.
The matrimonial home has special treatment in Ontario. Regardless of who owns it or when it was purchased (even if before marriage), both spouses have an equal right to possession after separation. Its value is included in the equalization process, and it cannot be deducted as property brought into the marriage.
No. Common-law spouses do not have automatic rights to property division under Ontario’s Family Law Act. Each partner keeps what they own. However, a common-law spouse may still bring a claim for unjust enrichment or constructive trust if they contributed to property owned by the other partner.
Yes. Debts are included in the calculation of each married spouse’s net family property.
Some types of property may be excluded from equalization, including:
- Gifts received from a third party or inheritances received during the marriage (if kept separate)
- General damages of Personal injury settlements
- Insurance proceeds
To claim an exclusion, you must provide clear evidence, such as bank statements or legal documents.
Yes. You and your spouse can negotiate a property settlement through a separation agreement. As a family lawyer, I help clients reach fair and enforceable agreements that protect their rights and avoid costly litigation.
There are strict time limits. A married spouse must start a claim for equalization:
- Within 6 years of separation,
- Or 2 years after the divorce is granted,
- Or 6 months after the other spouse’s death,
whichever comes first.
Missing these deadlines may bar your claim, so it’s important to act promptly.
Property division can be complex — especially when real estate, businesses, pensions, or excluded assets are involved. A family lawyer can ensure your financial rights are protected, help you understand your entitlements, and negotiate or litigate a fair resolution.
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