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:
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.