The Ontario Divorce Property Settlement Process

From a couple’s decision to separate and divorce to an Ontario court’s issuance of a divorce decree, the most critical step for the couple is putting together a mutually acceptable separation agreement that covers all aspects of dissolving the marriage, including  a divorce property settlement, custody of children, visitation rights, child support and spousal support. In terms of finances, the division of property in the separation agreement has long term implications for the financial well-being of the divorcing parties and needs to be carefully negotiated.

The Canadian Family Law Act

Canada’s Family Law Act covers every aspect of the divorce process. Part I of the Act covers Matrimonial Property, all jointly owned property other than the home. Under Part I, property is divided equally between the two parties. Note that this equal division is based on the value of the assets rather than the actual assets and includes all assets including investments and pensions.

Part II of the Family Law Act addresses the division of value of the “matrimonial home.” The matrimonial home is defined under law as the home the couple lived in while married and at the time of separation. The law applies to same sex couples as well.

The Division of Property and Equalization of Assets

The toughest part of drawing up a separation agreement for a couple is deciding how property is to be divided. Most experts in family law strongly suggest that these negotiations be handled by the attorney representing each party. In many cases, the separation agreement can be accomplished through a mediator. It is important for the divorcing couple to put emotions aside, communicate and avoid being adversarial in order to arrive at an acceptable and equal property division.

To ensure that both parties equally share the marital property, the value of the property, marital assets and marital debts to be shared is determined through an “equalization” calculation. This calculation, the equalization of assets, looks at current values and calculates projected values over time. The purpose of the equalization payments is to ensure equal positions for both parties. However, in the case that the separating spouses had signed a marriage contract, the court will follow the previously agreed conditions; unless the judge deems the agreement unfair.

Divorce Property Settlement in Ontario

The separation agreement, including the division of property, is a legally binding contract that can only be amended with the agreement of both of the divorcing persons. The resolution of any outstanding matters, notably one party’s request for exclusive possession of the home because of children and custody concerns, will be reviewed by the court and ruled on. Professionally guided and fair divorce settlements ensure that both spouses benefit from the financial agreement.

Expert Legal Advice in Ontario Divorce Property Settlement Issues

Divorcing is never easy, if you can reach an agreement with your spouse, then that will not only save you time, but also a lot of money. If you cannot agree on anything, then you should hire a Toronto divorce lawyer with extensive knowledge about the divorce property settlement.