Toronto Lawyer For Property Division

In Ontario, married spouses share the increase in value of their property from the date of marriage to the date of separation. This process is called equalization. Rather than splitting each item, the law equalizes the value by calculating a net difference, then one spouse pays the other to balance the gap.

This system applies only to married couples. Common-law partners do not automatically share property, but they may have claims under different legal grounds like unjust enrichment. Documentation is key in either case.

The matrimonial home is treated differently from other property. Both spouses have equal rights to possession, regardless of whose name is on the title. Neither person can sell or mortgage it without the other’s written consent.

Its full value is included in the property division, even if one spouse owned it before the marriage. If you’re separating, you may need to arrange exclusive possession or sale of the home, especially when children are involved.

Yes, debts are factored into the equalization calculation. Both assets and liabilities are considered when determining net family property. If one spouse incurred debt during the marriage, it can reduce their overall share of property.

However, not all debt is shared. Courts examine whether the debt was used for family purposes. A credit card for family groceries may be treated differently than one used for personal expenses. Documentation and timing matter in how debt is handled.

Yes, many property divisions are resolved through agreements outside of court. Spouses can negotiate directly or with the help of lawyers or mediators. If an agreement is fair and follows legal requirements, courts can formalize it without further litigation.

Avoiding court allows for more flexible solutions and saves time and cost. Still, both parties should understand their rights before signing anything—especially when significant assets or business interests are involved.

Pensions are considered property and must be valued accurately for division. The pension holder must obtain a valuation from the plan administrator, which will be included in the equalization process.

Businesses are also considered, and may require expert valuation. The value of the business—not just income from it—affects division. These assets often create complex disputes, and legal advice can help clarify whether buyouts or transfers are appropriate.