DIVISION OF PROPERTY & EQUALIZATION

Property or asset division is a major issue in many separations and  divorces. Under Ontario law, all assets belonging to the spouses are  considered matrimonial property. Even if an asset is held in one spouses  name it may be divided or given to the other spouse in property  settlements.

Property can include but is not limited to:

• Bank accounts;
• Pensions;
• RRSPs;
• Stocks;
• Real estate;
• Automobiles, boats, etc.;
• and anything else that you own.

Items  such as an inheritance, a gift or money that you have received from a  third person, or a settlement from a personal injury are considered  excluded from the division of property.

The law  states that the family property should be equalized. Equalized meaning  that each spouse, when you subtract their debts and items that are not  included, should have an equal property to the other spouse. Not every  asset or debt has to be divided equally. Instead, the total value of all  property, minus debts and any excluded items, are divided.

There  are certain cases when it is not divided equally based upon the  circumstances. Those circumstances can be in very short marriages, the  amount of debts and whether it was incurred recklessly and the hiding of  debt, to name a few circumstances.

Ontario Division of Property   Family Law Act