Is the division of property and assets always 50/50?

For couples who are starting the divorce process, they may believe that the division of assets and all property is always going to be 50/50. In some cases, this 50/50 division could greatly benefit one spouse but that doesn’t mean that same spouse contributed equal amounts to get the couple to their total assets and property. So, is the division of property and assets always 50/50 or can this change depending on the situation? Here’s what you need to know.

Exceptions to the Family Law Act

When it comes to the law in Ontario, there is very little room for exceptions to the areas covering equal divisions of assets. In fact, the only time that unequal division is awarded is when it would be against the conscience of the court to award fair division.

Financial disclosure

Part of the separation and/or divorce process is that both spouses need to completely and accurately disclose their entire financial situation – including all assets and debts.

If one spouse fails to disclose, or purposely hides, assets or in any way tries to alter their net family property, the court may rule in favour of the other spouse. It’s very important to make sure that each spouse is being honest to avoid any issues during the divorce process.

Exempt assets

In a few cases, there may assets that are not included in the total when the division is made. These included things like gifts and inheritances that were intended for only one of the partners.

Factors that may cause an unequal division of assets

There are a few factors that can be grounds for one spouse to ask for an unequal division of property or assets, and the court or judge may rule in their favour for that reason.

Short cohabitation period

If the couple has been living together for less than 5 years, before they filed for separation, then this could be a reason for unequal division. The reason behind this is, if in the specific situation of the couple, one partner would be entitled to an disproportionately large equalization payment when it’s compared to their time spent living together.

Reckless spending

If one spouse has reckless spending, and therefore has accumulated a lot of debt, the court may not believe it’s fair to ask the other spouse to pay for half of the total debt amounts. Equal division in this case would not be fair to the other spouse.

Unequal debt accumulation

If one spouse needed to take on a larger amount of debt to support the family, and it can be proven, then the court may rule in favour of giving that spouse a higher equalization payment to help the other spouse pay off the debt they took out to support the family.

Contact Fine and Associates today

There are a few factors that could be taken into consideration when it comes to division of assets and property, however most divorces are going to follow the Family Law Act and marital property will be split equally,

If you believe that you and your spouse should not be splitting assets equally as you’ve contributed more or brought more to the marriage then you should contact us today to speak with a family lawyer.