Does an Inheritance Used for the Family Home Get Shared in Ontario?

Often, yes: the exclusion for inheritances does not protect a matrimonial home. Property other than a matrimonial home that you received by inheritance after the date of marriage is excluded from net family property. A family home that was inherited or received as a gift is not excluded property and is counted in full.

The same limit applies to money you try to trace. Property that certain excluded assets can be traced into is also excluded, but not if it is a matrimonial home. The date-of-marriage deduction is also not allowed for property that is a matrimonial home on the valuation date. Income from inherited property is excluded only if the person leaving it expressly said so.

You have to prove any exclusion you claim. How much of your inheritance can be shown, what happened to the money, and whether a marriage contract says something different all depend on the facts. A marriage contract can exclude the home's value from net family property, for example. A lawyer can confirm where you stand.