Property Division & Equalization

Ontario does not simply divide all property equally upon separation. Instead, the law uses a concept called "equalization of net family property." Each spouse calculates their net family property — the value of all property owned at the date of separation, minus debts, and minus the value of property brought into the marriage (with some exceptions). The spouse with the higher net family property pays the other spouse half the difference.

This process often involves complex issues around property valuation, exclusions, tracing, and the treatment of specific assets such as inheritances, businesses, and investments.

The matrimonial home has special status in Ontario family law. Regardless of whose name is on the title, both spouses have an equal right to possess the matrimonial home during the marriage. The matrimonial home is also included in the equalization calculation differently from other property — no deduction is available for its value at the date of marriage.

Common-law spouses do not have the same automatic equalization rights as married spouses under Ontario law. However, common-law partners may have claims based on unjust enrichment or constructive trust, particularly where one partner contributed to the acquisition or improvement of property. Legal advice is important for common-law couples facing property disputes.