Equitable Division of Marital Property in Ontario

In Ontario, the Family Law Act governs the division of property between spouses upon separation or divorce. The law recognizes the concept of equalization of net family property, which involves calculating the value of each spouse's property acquired during the marriage and dividing it fairly between them.

Net family property is calculated by determining the value of each spouse's property on the date of separation, deducting any debts and liabilities, and excluding certain assets such as gifts, inheritances, and property brought into the marriage.

 

The spouse with the higher net family property value is required to make an equalization payment to the other spouse to achieve a balance in their respective property values.

 

There may be exceptions and considerations in certain circumstances, such as if the marriage was short-term, if there are significant assets or debts brought into the marriage, or if there are special circumstances that warrant a different division of property.

It is important to note that the equalization of net family property does not necessarily result in a 50/50 split of all assets acquired during the marriage. Each spouse's contribution to the marriage, their financial circumstances, and other relevant factors are taken into account when determining the equalization payment.

If you and your husband are separating after 6 years of marriage and 8 years of living together in Ontario, it is recommended to consult with a family law lawyer to understand your rights and obligations regarding the division of property. A lawyer can provide guidance on the equalization process, help you navigate the legal requirements, and ensure that your interests are protected during the separation.