What happens to the matrimonial home when we divorce in Ontario?

Divorce does not automatically transfer ownership of the matrimonial home. Ownership and possession are separate questions from equalization. On separation, spouses calculate net family property and an equalization payment may be owed. The home's value at the date of separation (the valuation date) is included in that calculation using the special matrimonial home rules — no pre-marriage deduction applies.

The couple can then agree on what happens to the physical property: one spouse buys out the other's equity, the home is sold and proceeds divided, or other arrangements are made. Courts can also order a sale if the parties cannot agree. Until a final settlement or court order, both spouses retain their equal right to possession.

The home does not transfer automatically on the granting of a divorce order. A separation agreement or court order is needed to formalize who gets the property, how equity is divided, and how any outstanding mortgage is addressed. The Canada Revenue Agency also has rules about tax treatment of property transfers between spouses on breakdown, so it is worth getting both family law and tax advice.