Does the Matrimonial Home Get Special Treatment in Equalization in Ontario?
Yes. Normally a spouse deducts the net value of property owned on the date of marriage, so only growth during the marriage is shared. The matrimonial home is the exception: that deduction is not allowed for property that is a matrimonial home on the valuation date, so the home's full value is included even if one spouse owned it before the marriage.
A matrimonial home is any property in which a person has an interest and that is, or was at separation, ordinarily occupied by the spouses as their family residence. A couple can have more than one, such as a house and a cottage. A rental property the couple did not live in as a family residence does not qualify. If a property is normally used for a non-residential purpose, such as a farm, only the part reasonably needed for the residence is the matrimonial home.
The home's value then forms part of your net family property, reduced by any mortgage or other debts on the valuation date. Whether a particular property qualifies, and how it should be valued, depends on the facts, so it is worth confirming with a lawyer.
Key takeaways
- The full value of a matrimonial home is included in net family property, even if one spouse owned it before the marriage.
- For other property, you deduct its net value on the date of marriage, so only the growth during the marriage is shared.
- A family home that was inherited or received as a gift is not excluded property and is counted in full.
- A marriage contract can exclude the home's value from net family property, but it cannot limit a spouse's possession and consent rights.