Property Division FAQs in Ontario: Answers to Common Questions

Does All Property Get Split 50/50 in Ontario?

No. Ontario does not simply divide property equally. Instead, the law equalizes the value of property accumulated during the marriage, not the property itself. The spouse with the higher net family property pays the other half of the difference — this is the equalization payment.

What Happens to My Inheritance?

Property received as an inheritance during the marriage is generally excluded from your net family property, provided it was kept separate and not commingled with family assets. However, if you used an inheritance to purchase or improve the matrimonial home, it loses its excluded status and becomes part of the equalization calculation.

What Happens to Property I Owned Before Marriage?

Property you owned before marriage can generally be deducted from your net family property calculation. You will need to establish the value of that property at the date of marriage. Careful record-keeping of pre-marriage assets is important.

Is My RRSP Included in Property Division?

Yes. RRSPs and other registered accounts are included in your net family property. The full value of the RRSP on the date of separation is included, subject to any deduction for the value it had at the date of marriage.

What Happens to the Family Cottage?

A family cottage that was used as a family residence can be designated as a matrimonial home. If it is, its full value on the date of separation is included in NFP without any pre-marriage deduction. Even if it is not a matrimonial home, its value on the separation date is included in NFP subject to the usual deductions.

Can My Spouse Take Half of My Business?

Not literally. Your spouse cannot force you to give them a share of your business. However, the value of your business interest is included in your net family property. If your NFP is higher as a result, you may owe an equalization payment in cash, which may require you to sell assets or arrange financing.

What If My Spouse Hid Assets?

Full and honest financial disclosure is a legal obligation. If you believe your spouse has hidden or disposed of assets, you can request a court order for disclosure, conduct examinations under oath, or request bank and financial records. A court can impose significant penalties for failure to disclose, including adverse costs awards and drawing negative inferences.

Does Property Division Apply to Common Law Couples?

No. Ontario’s equalization regime under the Family Law Act applies only to married spouses. Common law partners do not have automatic equalization rights. However, common law partners may have claims based on unjust enrichment or constructive trust principles, particularly if they contributed to the acquisition or improvement of the other partner’s property.