How is property divided when you get divorced in Ontario?

Property division in Ontario on divorce is governed by the provincial Family Law Act, not the federal Divorce Act. Ontario uses an equalization model rather than a direct split of assets. Each spouse calculates their "net family property" — roughly the increase in their net worth from the date of marriage to the date of separation. The spouse whose net family property grew more pays the other spouse half the difference. This is called the equalization payment.

The matrimonial home is treated specially: regardless of who holds title, both spouses have an equal right to possession, and the full value of the home on separation is included in each owner-spouse's net family property without the usual deduction for its value on the date of marriage.

Property you brought into the marriage or received as a gift or inheritance during the marriage may be excluded from your net family property calculation, with the matrimonial home being the notable exception. The equalization model means you can walk away with very different assets but equal growth — it is not a 50/50 split of every item. A family lawyer can help you run the numbers and understand what equalization means in your specific situation.