Property Division

After separation, property is dealt with differently for Married Couples versus Common Law Couples in Ontario. This can be confusing. 

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For married couples, the Family Law Act generally requires that marital property be delt with in a way that ensures both parties walk away on even terms. This means we need to calculate each party's "Net Family Property" for fair and equal distribution. The person who has a higher value of  property will need to make a payment to the other spouse. This is called equalization. For example, once all assets and debts (and other factors) are considered, if Spouse A has a net family property of $100,000 and Spouse B has a net family property of $50,000, Spouse B will receive a $50,000 payment. 

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We generally have both spouses complete a Financial Statement to be exchanged and used to figure out the overall financial picture and how to best move forward. Assets may include a matrimonial home, other real property (rental home or camp), bank accounts, investments, vehicles, household items, pensions, etc. Debts may include mortgages, lines of credit, loans, or credit cards, among other liabilities. 

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There are several other considerations when it comes to property issues, which we will investigate together. Both spouses have an obligation to provide full and frank financial disclosure, whether assets/debts are in sole or joint names. 

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Common law spouses may also have property considerations when they separate. You may have purchased property together, or one spouse made a sizeable contribution to the property in the other spouse's name. We can talk about the details of the relationship, practically and financially, and explore any entitlements or obligations that may exist. 

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