How does the Ontario family property equalization payment interact with intestacy rules?
When a married person dies in Ontario, their surviving spouse has a choice: they can take what they are entitled to under the intestacy rules, or they can elect to receive an equalization payment under the Family Law Act. They cannot take both — they must choose one.
The equalization payment is calculated by comparing the net family property of each spouse over the course of the marriage. If the deceased spouse accumulated significantly more property during the marriage than the surviving spouse, the survivor may receive a larger payment through equalization than through the intestacy formula — or vice versa. The right choice depends on the specific numbers.
This election must be made within a specific deadline after the spouse's death, and once made, it is generally irrevocable. Surviving spouses facing this decision should obtain legal and financial advice promptly so they do not inadvertently waive a more advantageous claim.
Key takeaways
- A surviving spouse can choose between intestacy entitlements and a Family Law Act equalization payment.
- They cannot receive both — it is an election, not an addition.
- The right choice depends on the net family property calculation.
- The election must be made within a specific deadline — seek advice immediately.