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Property
This section will help you understand how Ontario property division works when a marriage or an unmarried relationship breaks down. The guide at the end contains more details about the terms and the issues.
Important Note: If you are not married to each other, then you do not have the same property rights as married couples. Many people believe that if they lived together long enough, they will have the same property rights. This is not true under Ontario law
Property issues are complex. Do not let that discourage you. This section will help you understand the approach, the terms, and the information you need to gather. There is a lot of detail. We thought you would like to have it.
+ Married Couples
If you are married to each other, The Family Law Act of Ontario provides for the sharing of all wealth which accumulated during the marriage with some exceptions.
Each spouse is entitled to half of the net worth which accumulated during the marriage. The amount of accumulated net worth during the marriage is called Net Family Property”.
To share the total net worth which was accumulated by both of you during the marriage, each spouse must determine their net worth on the date of the separation, then go back to the date of marriage and figure out each party’s net worth on that date. This calculation shows how each spouse’s net worth has changed from the date of the marriage to the date of the separation. This change in net worth is called “net family property” and each spouse most likely will have a different net family property.
The spouse who has more net family property must pay to the other spouse an amount which is equal to one half the difference between the two net family properties. This results in each spouse ending up with half of the total net worth which was accumulated during the marriage.
The value of the matrimonial home, which is the residence in which you are living at the time of your separation, is always fully shareable. If only one spouse owns the home, then the owner spouse must include the value of the matrimonial home (value determined as at the date of the separation) as part of their net family property which then makes it shareable with the other spouse. If both spouses own the property jointly, then they are both entitled to half of the equity in the property at the time it is dealt with.
+ Unmarried Couples
No matter how long you live together, neither you nor your partner will ever have the same rights regarding property division upon a breakdown in your relationship as if you were married. People think that they will be treated the same way as married couples if they live together long enough. This is simply NOT the case. However, you may well have property rights under what is called “the common law”. You will need to obtain legal advice to determine if you do have rights.