The Family Law Act is the primary legislation governing property division in the event of separation of married spouses. While the law is clear on how the parties’ “net family properties” are to be determined, the issues can be complicated. In order to ensure that property is divided equitably and that no assets are being hidden, it is best to seek the counsel of an experienced divorce lawyer.
Ontario Family Law Act: Family Property & Matrimonial Home
Divorce and property division are the focus of Parts I and II of the Ontario Family Law Act. Part I of the law recognizes the equal contribution both parties make to a marriage. Therefore, both parties, regardless of actual financial contributions, are entitled to share in the accumulation of wealth during a marriage.
Part I clearly outlines what assets and liabilities are to be included or excluded from the calculation of the parties’ “net family property” (ie. the increase in a spouse’s net worth from the date of marriage to the date of separation). The spouse with the lower net family property is entitled to an equalization payment—one half the difference between the respective parties “net family properties”.
Part II discusses the Matrimonial Home—the shared residence(s) of a married couple. The value of the Matrimonial Home is always to be divided evenly among spouses, regardless of under whose name or when the home was acquired (unless a Domestic Agreement is in effect).
It is also important to note that the Matrimonial Home is considered special property. If there is no Domestic Agreement as between the parties, if the same house is owned on the date of marriage as on the date of separation, unlike other property owned on the date of marriage, you are not entitled to deduct the value of the Matrimonial Home owned on the date of marriage from the determination of the parties’ net family property (this is not the case if a different home was owned on the date of marriage as on the date of separation).
Why You Need a Divorce Lawyer’s Help with Property Division
Although calculating your net family property seems relatively straightforward, there are always complications. For instance, providing the documentation to justify the exclusion of a gift or inheritance from your net family property or ensuring that your spouse makes full and complete financial disclosure may require a Divorce Lawyer’s assistance. A Divorce Lawyer’s counsel will also be needed if you seek more than half the difference of net family property values because of your spouse’s reckless spending behavior.
Because the Family Law Act applies to married couples, you should seek a Divorce Lawyer’s counsel for property division under common law unions.
Contact our Experienced Toronto Divorce Lawyers
Divorce and property laws get complicated. It is a very stressful time in an individual’s life. You should not have to go through this alone. The experienced Divorce Lawyers at Fine & Associates Professional Corporation are available to assist you in this difficult time and provide the objective helpful advice you need throughout the divorce process.
To get the help of experienced Divorce Lawyers in the Toronto area, contact Fine & Associates Professional Corporation for a free initial phone consultation.