Does a Separation Agreement Stop the Clock on Property Claims and the Date of Separation in Ontario?
Whether signing a separation agreement affects your equalization deadline depends on your situation, so it is worth confirming with a lawyer. For married spouses the time limit is six years from the day of separation, or two years from the day the divorce is final, whichever comes first.
The separation date matters because each spouse adds up the value of property owned on that date, minus debts and excluded property, and then subtracts the value of property, minus debts, owned on the date of marriage. Separation is when a couple decides to live apart because the relationship has broken down, and it needs no court order. For divorce, resuming cohabitation for no more than 90 days in total, with reconciliation as its primary purpose, does not interrupt the separation period.
The court keeps a residual discretion to extend time limits under the Family Law Act, but you should not count on it. Equalization does not apply to unmarried couples, and a partner who contributed to the other's property may have to go to court unless the owner agrees to repay. A lawyer can confirm how the dates in your agreement line up with your deadlines.
Key takeaways
- The equalization claim must be made within six years from the day of separation or two years from the day the divorce is final, whichever comes first.
- Net family property is worked out using the value of property owned on the separation date.
- Separation needs no court order, and resuming cohabitation for no more than 90 days in total, with reconciliation as its primary purpose, does not interrupt the separation period for divorce purposes.
- Unmarried couples are outside the equalization regime, and a partner who contributed to the other's property may have to go to court unless the owner agrees to repay.