What Does the Family Law Act Say About Property Division for Married Spouses in Ontario?

If you are married and separating, the spouse with the larger net family property pays the other spouse half the difference, called an equalization payment. So who owes whom depends on which of you built up more value during the marriage.

To calculate it, each spouse values the property they own on the separation date, subtracts debts and excluded property, and then subtracts the net property they owned on the marriage date. A negative share counts as zero. Gifts, inheritances (other than the family home), life insurance proceeds received because someone died, personal injury money and property excluded by agreement are not shared. The full value of the family home is shared even if it was owned before marriage, gifted or inherited, although a court can divide it differently only in very special situations where an equal split would be extremely unfair.

Common-law couples are not legally required to split property acquired while living together, although they may recover contributions to the other's property. A court claim for equalization must be started within six years of separation or two years after the divorce is final, whichever comes first. A lawyer can confirm how these rules apply to your situation.