My spouse inherited a property before we married and we lived in it. Is it a matrimonial home?

Yes, an inherited property can become a matrimonial home if the couple ordinarily occupied it as their family residence on the date of separation. The source of the property — whether purchased, inherited, or gifted — does not prevent it from being a matrimonial home.

This can have significant financial implications. Normally, property inherited or received as a gift during the marriage can be excluded from net family property calculations. However, if that inherited property becomes the matrimonial home, the exclusion does not apply. The full value of the home at separation is counted in equalization, and the pre-marriage value cannot be deducted.

This is one of the ways the matrimonial home rules can produce unexpected results. A spouse who inherited a family home worth a significant amount before the marriage and then lived there with their partner could end up owing a large equalization payment, even though the home came from their own family and was never jointly purchased. Legal advice before using an inherited property as a matrimonial home — or after separation — is important.