Family property refers to any assets acquired between the date of marriage and the date of separation. These assets are subject to Ontario’s property division laws, regardless of which spouse purchased them. Common examples of family property include:

• Real estate, including the matrimonial home

• Vehicles, personal property, and valuable possessions

• Business interests, pensions, and investments

• Bank accounts and outstanding loans

• Certain assets, such as inheritances and gifts, may be excluded from division, provided they can be traced and were not used toward the matrimonial home.

Ontario follows an equalization process for property division, meaning each spouse is entitled to an equal share of the net value of assets acquired during the marriage. This does not mean assets are physically split in half, but rather that the spouse with a higher Net Family Property (NFP) value pays an equalization payment to the other spouse.

The NFP Calculation involves:

• Determining each spouse’s total assets and liabilities at the date of separation

• Subtracting the value of assets and debts held at the date of marriage

• Excluding certain assets, such as inheritances or gifts (except the matrimonial home)

• Calculating the difference and determining the equalization payment

If an equal division of property would be unfair or unconscionable, the court may order an unequal division based on specific circumstances.

The matrimonial home holds special legal status under Ontario law. Regardless of ownership, both spouses have an equal right to stay in the home until a final property settlement is reached. Options for resolving ownership include:

• One spouse buying out the other’s share

• Selling the home and dividing the proceeds

• A court order determining possession in certain circumstances

Even if one spouse owned the home before marriage, its value cannot be excluded from property division if it became the matrimonial home.

Unlike married couples, common-law spouses do not automatically share property acquired during the relationship. Instead, they must prove a financial contribution to an asset through constructive trust or unjust enrichment claims. This often leads to legal disputes, making it essential to seek legal counsel for asset division.

A cohabitation agreement can help common-law partners clarify property ownership and prevent future conflicts.

Under the Family Law Act, married spouses must file a claim for property division within:

• Six years from the date of separation

• Two years after a divorce is granted

• Six months after a spouse’s death

Failing to file within the required timeframe may result in losing the right to an equalization payment.

Dividing certain assets can be more complicated, particularly in cases involving:

• Business ownership & corporate assets

• Pensions and investment accounts

• Hidden or undisclosed assets

• Significant debts or financial liabilities