- Net family property is the value of what a spouse owns on the valuation date, less debts and the date-of-marriage deduction (which is not allowed for a matrimonial home), with excluded property left out.
- Each party to a Part I property claim must serve and file a net family property statement, Form 13B, before a settlement conference or trial.
- The spouse claiming a deduction or exclusion has to prove it.
The net family property statement is where the numbers of an Ontario property claim come together. It sets out what each spouse owned, owed and claims should be left out, so that equalization can be worked out.
This article walks through the building blocks, the supporting documents and the deadlines. It is general information, and the right figures for your case depend on your facts.
What the statement is for
When a divorce is granted, a marriage is declared a nullity, or spouses separate with no reasonable prospect of resuming cohabitation, the spouse with the lower net family property is entitled to one-half of the difference between the two.
Before a settlement conference or trial, each party to a Part I property claim must serve and file a net family property statement, Form 13B. Equalization only applies to a spouse as defined in the Act, which covers people married to each other and does not include unmarried cohabitants.
The building blocks of the calculation
Net family property is the value of all property a spouse owns on the valuation date, except excluded property. From that you deduct the spouse's debts and other liabilities, and the net value of property, other than a matrimonial home, that the spouse owned on the date of marriage.
The valuation date is the earliest of five dates: separation with no reasonable prospect of resuming cohabitation, the date a divorce is granted, the date the marriage is declared a nullity, the date a spouse starts a successful improvident-depletion application, or the day before a spouse dies. If a spouse's net family property comes to less than zero, it is treated as zero.
| Item | How it is treated |
|---|---|
| Shares in a business or company | Counted at their value as property |
| Gift or inheritance from a third person after marriage | Excluded, but not if it is a matrimonial home |
| Personal injury damages and life insurance proceeds | Excluded |
| Property excluded by domestic contract | Excluded |
| Gifts between spouses | Not excluded |
Matrimonial homes and traced property
No date-of-marriage deduction is allowed for a property that is a matrimonial home. Debts tied directly to buying or significantly improving a matrimonial home are also not netted against the date-of-marriage deduction. The family home's full value is shared even if one spouse owned it before the marriage.
Excluded property can stay excluded when it is traced into other property, but not into a matrimonial home. A gift or inheritance used to buy or pay down the family home loses its protection. Income from gifted or inherited property is excluded only if the donor or testator expressly said so.
Pensions are valued under the Pension Benefits Act, and for other plans the same method is used where reasonably possible.
Supporting documents and deadlines
The spouse claiming a deduction or exclusion has the onus of proving it, so keep records that show what you owned on the date of marriage and where excluded money came from.
A sworn statement must cover the date of marriage, the valuation date and the date of the statement, plus claimed deductions and exclusions. Supporting documents, including account and investment statements issued closest to the valuation date, must be served within 30 days after the financial statement is due.
The Form 13B is due six days before a settlement conference for the requesting party and four days before for the other party. For trial it is due 30 days before the earlier of the trial start and the trial sitting. If you find an error, you must promptly serve the corrected information.
What to do next
- Confirm your valuation date
- List everything you owned on the date of marriage and on the valuation date
- List all debts as of the same dates
- Gather statements for accounts and investments closest to the valuation date
- Collect proof of any gift, inheritance or other exclusion you plan to claim
- Ask a lawyer to review your figures before you file
Valuing a business or property often needs expert evidence, and there is no statutory formula. A lawyer can help you decide what is needed.
Frequently asked questions
Which form is the net family property statement?
It is Form 13B, and each party to a Part I property claim must serve and file it before a settlement conference or trial. It is separate from the financial statement, Form 13.1, filed with a property claim.
Do I count my home if I owned it before the marriage?
If the home is a matrimonial home, meaning property the spouses ordinarily occupied as their family residence (judged at the time of separation if you have separated), then no date-of-marriage deduction is allowed and its full value is shared. A home that was not a matrimonial home is not covered by that rule, so how it is treated depends on your facts and is worth confirming with a lawyer.
Is my inheritance excluded?
An inheritance from a third person after the date of marriage is generally excluded, but not if it is a matrimonial home. If you put it into the family home, it loses its protection.
What if my net family property is negative?
It is deemed to be zero.
Sources
- Family Law Act, s. 18(1) (e-Laws) — Ontario e-Laws
- Family Law Rules, O. Reg. 114/99, r. 13(1) (e-Laws) — Ontario e-Laws
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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