What is property equalization in Ontario family law?
When a marriage ends in Ontario, spouses do not automatically split everything down the middle. Instead, the law uses a process called property equalization under the Family Law Act. Each spouse calculates their own net family property — roughly the growth in their wealth during the marriage — and the spouse with the higher amount pays the other half the difference.
The goal is to share the economic gains made during the marriage, not to divide every individual asset. You keep what you brought in and what you received as a gift or inheritance (subject to important exceptions), and the two of you equalize the increase.
This system applies to married spouses only. Common-law partners in Ontario do not have the same automatic equalization rights and must rely on other legal claims if their relationship ends.
Key takeaways
- Equalization shares the growth in wealth during the marriage, not all assets
- Each spouse tallies their net family property, and the higher earner pays half the difference
- Only married spouses have automatic equalization rights in Ontario
- Common-law partners must rely on different legal claims