Which debts can be deducted when calculating net family property in Ontario?

When calculating net family property, a spouse subtracts all debts and liabilities owed on the valuation date. This includes mortgages, car loans, credit card balances, student loans, lines of credit, income tax owing, and any other legal obligation that existed at separation.

There is no list of "approved" debts — any legitimate liability counts. However, debts must actually exist at the valuation date. Debts incurred or anticipated after separation are not deducted. Similarly, a debt created to reduce net family property artificially — for example, a spouse who borrows from a family member and claims it as a liability — may be challenged.

It is important to gather statements for all debts as of the valuation date: mortgage balances, loan statements, credit card statements, and any tax arrears. If there is a dispute about whether a claimed liability is real, the other party can request documentation through the disclosure process.