How is Property Divided Between Spouses?
One of the many tasks that you have to take care of when getting a divorce involves dividing all the property that the both of you have accumulated over the period of your marriage. There are various rules and regulations that make up the law regarding property division, most of which involve the recognition that both members of a matrimonial home contribute equally to the collective wealth of the household. Knowing the basics about how this process works ensures that your spouse follows through on their post-marriage responsibilities.
What’s Included in Property Division?
Personal and household items, cars, bank accounts, investments and the home all count as property to be divided among the two of you. In this arrangement, debt is also counted as property that is distributed equally. The only exception to the rule is excluded property. An example of excluded property is inheritance, as long as they were not invested in the matrimonial home.
The matrimonial home has a set of rules applied to its division, different from the rest of the divided property. Since both of you live in the matrimonial home, the two of you have the right to stay, even if you don’t own the home. The home can’t be sold or rented without both parties agreeing to the transaction.
For divorced couples with children, the partner who has custody of the kids is usually the one who gets to stay in the matrimonial home with the children. This is typically done to help children adjust to the new reality of their family situation.
Calculation Information
Everything that the both of you owned while together, excepting excluded-property, becomes added together to calculate the net family property. This figure is the basis for equal division of property after a divorce. During the proceedings, damages for personal injury may be deducted from the net family property.
If one spouse owned the home throughout the marriage, any increase in real estate value must also be equally split. The price of the home is calculated according to the valuation date, which is the moment when both parties knew the divorce was proceeding.
Recent changes to Ontario law have made it easier for the divorced to deal with dividing pensions after the breakup of a marriage. Instead of hiring an actuary, the handlers of the pension plan will be able to make valuations and payments according to the law.
These laws are for married couples getting divorced, and not for common-law couples, which have a different set of rules and regulations to deal with after separation.
Need Help with Property Division? We Can Help
At Fine & Associates Professional Corporation, we understand that property division can be both legally complex and emotionally charged. Let our experienced family law lawyers help you through this difficult time in your life by fighting for your best interests. Contact us today to speak with Lorne Fine, a divorce lawyer who will fight aggressively for equitable property division.