In Ontario, property division in family law is governed by the Family Law Act (FLA), which provides a framework for the division of net family property between married spouses upon separation.
The equalization of net family properties does not apply to couples whom have cohabited but not married, however, there may be other property claims that may be advanced.
Under the FLA, the value of property acquired during the marriage is equalized, with some exceptions. This includes the value of all assets and liabilities, such as the family home, bank accounts, investments, pensions, and debts.
However, there are some exceptions to this rule. For example, property that was owned by one spouse before the marriage or acquired through inheritance during the marriage and can be traced to an asset that exists on date of separation or gift from a third party during the marriage that exists on date of separation are generally deducted or excluded from the equalization of net family property calculation.
It is important to note that the property division process can be complex, and it is recommended that individuals seek the advice of a family law lawyer to ensure that their rights are protected and that they receive a fair share of the property. If you have questions about the division of property upon separation, our lawyers at Scharff Nyland Chambers are happy to discuss with you.