We never want to have to think about how to divide our assets at the end of a relationship, but it’s necessary in order to settle any type of separation or divorce in Ontario. The process can be overwhelming, especially when it comes to the division of marital property. Understanding your rights and entitlements is crucial to protecting your financial future.

Division of marital property involves complex issues that require the help of a trusted family lawyer. While many people assume that division of marital property is as simple as 50/50, that is not correct.

What Is the Equalization of Net Family Property?

To determine the division of property, one must calculate the value of the “Net Family Property.” Net Family Property is the value of all assets and debts owned by each spouse at the time of separation. This means that each spouse’s increase in net worth during the marriage is calculated and shared equally.

Assets include real estate, vehicles, investments, pensions, businesses, savings accounts, and jewelry.

However, under the Ontario Family Law Act, the matrimonial home is not treated the same as other assets.

Assets not included in the net family property calculation includes gifts and inheritances, or any increase in the value of the gift or inheritance, personal injury settlement for pain and suffering and property explicitly excluded by a marriage contract.

What Happens to the Matrimonial Home?

According to the Ontario Family Law Act, both spouses have equal rights to live in the home, regardless of whose name is on the title. Unlike other assets, you cannot deduct the value of the home if you owned it before the marriage. Its full value is subject to division.

Spouses are not entitled to deduct the value of the matrimonial home on the date of marriage. This means if the value of the matrimonial home increase on the date of separation, that is the value which is equally divided.

Here is a short example of division of the matrimonial home:
If, on the date of marriage, your house was valued at $700,000. And on the date of separation, your house was valued at $1,000,000. There is an increase in value of $300,000. You are required to split the value of the home on separation, which is $1,000,000, not the value increase of $300,000.

However, the example above is not always the case if spouses move into another family home during their marriage.

This is why it is important to speak with a family lawyer to know your rights surrounding the matrimonial home.

Do We Need to Go to Court?

While some cases require court intervention, many divorcing couples resolve property division through negotiation or mediation. With a Separation Agreement, parties can amicably resolve how they wish to divide their assets and matrimonial property. This approach is often faster, less stressful, and more cost-effective.

How Can Gosai Law Help?

Dividing property in a divorce can be legally and emotionally complicated. We can:

• Help you understand your legal rights
• Advocate for a fair division of assets
• Ensure no important details are overlooked

Don’t face it alone. We’re here to guide you and support you through this challenging time. Contact Gosai Law for a consultation, and let our experienced team help you achieve a fair outcome.