Property division, in the context of a divorce, is one of the most confusing – and least understood – areas of family law.  Many people who call family lawyers do not know their rights are when it comes to property division and have major misunderstandings of what they are entitled to financially.

The most common question is: do I have to give up half of everything I own? 

In Ontario, the Family Law Act presumes that legally married spouses are entitled to share the net value of what each other owns at the end of a marriage – with some important exceptions some of which are described below.

People who cohabit – common law spouses – do not have an automatic right to half their spouse’s property when the relationship ends.  There are some exceptional circumstances where you challenge that presumption such as in the case of a making a trust claim which is a complicated issue that requires an experienced family lawyer.

The process that applies to the division of property with married couples is called equalization of net family property values.  Assets that are divided at the end of a marriage can include:

• Houses
• Cottages
• Cars & boats
• Valuable collections including jewellery and art
• Money in bank accounts
• Stocks, bonds, GIC’s
• Interests in businesses – whether sole proprietorships or corporations
• Pensions
• Money owed by someone else to a spouse (including a Canada Revenue Agency tax refund believe it or not.)

Dividing marital property is not always simple – even for some family lawyers!  Property you brought into a marriage for instance – and is in your name solely at the time of separation – remains yours after the split although its growth during the marriage is included in the calculation of your net family property value.

Having an experienced family lawyer who knows how the law applies to your unique situation is indispensable.  Book a free consultation with Kathryn L Smithen.