Upon separation, both parties are required to assess all property, including but not limited to assets, and liabilities, that they accumulated during their relationship.
The property includes but is not limited to:
- Matrimonial home
- Cottage
- Vehicle
- Investments
- Bank accounts
- Debts and liabilities such as credit cards, lines of credit, mortgage
The division of property can be complicated. Married spouses have different property rights under the law than common-law spouses.
Married couples are entitled to a legislated property division regime, known as “Equalization of Net Family Property”, which is set out in the Family Law Act. Common-law spouses are not entitled to a division of property under the same legislation.
Upon separation, both parties are required to assess all property, including but not limited to assets, and liabilities, that they accumulated during their relationship.
The property includes but is not limited to:
- Matrimonial home
- Cottage
- Vehicle
- Investments
- Bank accounts
- Debts and liabilities such as credit cards, lines of credit, mortgage
The division of property can be complicated. Married spouses have different property rights under the law than common-law spouses.
Married couples are entitled to a legislated property division regime, known as “Equalization of Net Family Property”, which is set out in the Family Law Act. Common-law spouses are not entitled to a division of property under the same legislation.
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Ontario Family Law Limitation Periods
A limitation period is the maximum length of time for making a claim under a provincial or federal statute or rule. There are several limitation periods applicable to family law procedures, and spouses should be aware of upcoming deadlines.
For example:
- The Family Law Act requires married spouses to make a claim for equalization (equal division) of net family property within the earliest of 6 months after the first spouse’s death, 2 years after a divorce has been ordered, or 6 years from the date of separation. A failure to make a claim within the limitation period will bar the claimant from recovering a share of net family property. (If you are a common-law spouse, it is important to seek legal advice as you may be eligible to make a property claim through a device known as a constructive trust.)
- Canada’s Pension Plan (CPP) Act allows former spouses to apply for a division of pension plan credits. The Act stipulates that there is no time limit for a formerly married spouse to make an application to divide CPP credits after a divorce is granted. However, common-law partners must be separated for at least 1 year, and the applicable limitation period is 3 years. Additionally, in the event of a spouse’s death, there is a limitation period of 3 years.
Commonly Asked Questions About Property Division
Each Spouse is entitled to 50% of the growth of assets from the start of the relationship. All property and assets accumulated during the relationship are divided in half unless it is an inheritance or gift.
The growth of an exempt asset is still calculated during the length of the relationship.
A common-law Spouse who owns the home can kick their Spouse out for any reason. A married couple cannot. Married Spouses both have rights to ownership of the matrimonial home. It doesn't matter whose name is on the ownership agreement or who pays for the home. There are special rules and requirements when dealing with the matrimonial home during separation and Divorce.
Property owned before marriage is not often calculated in equalization payments as it is not considered a marital asset.
This however does not include the matrimonial home. A home owned by one spouse and used as the main residence during a marriage is considered part of the marital assets.