Dividing Property when a Marriage ends

In addition to the already difficult situation of separating from your spouse, complications can arise when dividing assets and figuring out who gets what in the event of the breakdown of the relationship.

In Ontario, property acquired during a marriage must be split equally when a marriage ends. This can include your home, business, car, money, etc. For property that you owned before your marriage, any increase in value is also equally divided upon separation.

Further to the above, one must be conscientious of timelines regarding the division of property.

You have six years from the date of separation or two years from the day your divorce is final (whichever comes first) to claim the equalization of net family property.

There are important exceptions that allow one spouse to keep the property they own in the event of separation. This is known as excluded property. Examples include:

• property (other than the matrimonial home) that you inherited or were gifted during your marriage;
• insurance proceeds and some court settlements;
• money received as a result of a personal injury claim; and
• property that you and your spouse have agreed to exclude through an agreement.

Apart from claiming an equalization payment through a court application, you and your spouse can divide your property through a separation agreement to avoid the dreaded court system. When creating a separation agreement, it is important that you both understand the agreement, the agreement is fair and conscionable, and that you share full and frank financial disclosure.

It is recommended that you each consult with a different lawyer to look over the separation agreement before signing it so that they may provide you with independent legal advice.

Separating from your spouse can be very emotional and very draining. It is important to ensure you are protected and understand the law and Sorbara Law can help guide you in the right direction.