How Much Does Equalization Change If We Have a Marriage Contract in Ontario?

A marriage contract can change equalization quite a lot, because you and your partner can agree that certain property is left out of the calculation. Without a contract, net family property is the value of everything a spouse owns on the valuation date, except excluded property, minus debts and the value of property owned on the date of marriage (other than a matrimonial home). On divorce, nullity or separation with no reasonable prospect of resuming cohabitation, the spouse with the lesser net family property is entitled to one-half of the difference.

Property that you agree in a domestic contract is not to be included is excluded from net family property. That matters most for things the Act would otherwise share, such as a matrimonial home owned before marriage, where the full value must be shared unless the spouses agree otherwise.

There are limits. A term that tries to limit a spouse's Part II matrimonial home rights, including equal possession, is unenforceable. A court can set the contract aside for non-disclosure of significant assets, lack of understanding or under contract law, and it may disregard terms on child support that are unreasonable under the guidelines. A lawyer can confirm how this applies to you.