Property division

The basics of property division

In Ontario, most property owned by either spouse during a marriage (both individually and jointly) is considered matrimonial property and is included when dividing assets at separation. This can include:

• real estate
• bank accounts and investments
• pensions and RRSPs
• vehicles and household contents

Certain assets — such as inheritances, gifts from third parties or compensation for personal injury — may be excluded.

How property is divided

Ontario law generally requires an equalization of net family property. This means the overall value of property, after debts and exclusions are considered, is balanced between spouses. Individual assets do not necessarily need to be split equally.

In some circumstances, family property is not divided equally, such as very short marriages, the amount of debt and whether it was incurred recklessly, and the hiding of debt.

Does fault affect property division?

No. In Ontario, the reason for a divorce — including infidelity and substance abuse — does not by itself affect how property is divided. For example, if one spouse had an affair, it does not mean the other spouse keeps a larger share of the property.

There is a line though. If one person’s behaviour reaches what the court describes as “shocking to the conscience of the court,” the judge can divide assets differently.

Reaching an agreement

If the parties reach an agreement, they can divide their assets however they would like. Many couples reach property agreements through negotiation, mediation or collaborative process. When full financial disclosure is exchanged and legal advice is obtained, agreements can often be reached without going to court.

If they cannot agree in any way, then they may end up bringing their matter to the court and the court will decide.