How Division of Property in Ontario Works

Division of property in divorce Ontario
  • Division of assets in divorce focuses on the principle of “all things equal.”

  • Through a net family property (NFP) calculation you and your spouse share what was gained during your marriage.

  • Pensions earned during the marriage are property and are included in your NFP calculation.

  • If you started earning pensions before you got married, you begin calculating it on the date of your marriage and the date of your separation

  • Inheritances received don’t have to fall into your division of property.

  • Your matrimonial home has a special status under the Family Law Act.

  • There Are Exceptions to Equalization?

Property Division
What if you can’t agree on splitting assets in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:40:59-04:00

If you can’t agree on splitting assets, mediation or arbitration can help resolve disputes. If these methods fail, the court will make a decision based on the Divorce Act. Working with a Divorce Mediator or Certified Divorce Financial Analyst can help facilitate an agreement and avoid court intervention.

How are retirement accounts split in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:39:28-04:00

Retirement accounts, including pensions and RRSPs, are considered matrimonial assets and are divided based on their value accrued during the marriage. This can involve direct transfers or offsetting with other assets. Consulting with a Certified Divorce Financial Analyst ensures a fair and tax-efficient division.

Is mediation required for splitting assets in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:38:04-04:00

Mediation is not required but is strongly recommended. It helps spouses reach a mutually agreeable settlement without court intervention. A Divorce Mediator or Certified Divorce Financial Analyst can facilitate mediation sessions, making the process smoother and more amicable.

What are the tax implications of splitting assets in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:36:38-04:00

Tax implications can include capital gains tax on the sale of properties, transfer taxes, and potential tax liabilities on divided assets like investments and pensions. Consulting with a Certified Divorce Financial Analyst can help you understand and plan for these tax consequences to minimize financial impact.

Do you have to sell the family home in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:35:12-04:00

No, selling the family home is not always necessary. Alternatives include one spouse buying out the other’s share or agreeing to retain joint ownership until a later date. A Divorce Mediator or Certified Divorce Financial Analyst can help explore these options to find the best solution for both parties.

How to value assets for a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:31:43-04:00

Valuing assets involves assessing the current market value of properties, investments, pensions, and other marital assets. Professional appraisals may be required for accurate valuations. A Certified Divorce Financial Analyst can provide expertise in valuing complex assets to ensure an equitable division.

When does the court get involved in splitting assets in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:29:55-04:00

The court gets involved if the spouses cannot reach an agreement on asset division. The court will then decide based on the principles outlined in the Divorce Act. To avoid court, it’s advisable to seek the help of a Divorce Mediator or Certified Divorce Financial Analyst to facilitate an agreement.

What documents are needed to split assets in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:28:35-04:00

| Documents needed include financial statements, property deeds, mortgage statements, investment accounts, pension details, and debt records. Accurate documentation helps ensure a fair division of assets. A Certified Divorce Financial Analyst can assist in gathering and organizing these documents for a smoother process.

Can you split assets amicably in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:26:27-04:00

Yes, splitting assets amicably is possible and often preferable. This can be achieved through mediation, where both parties work together to agree on the division of assets. A Divorce Mediator or Certified Divorce Financial Analyst can facilitate these discussions and help reach a fair and mutually acceptable agreement.

Is a separation agreement necessary for splitting assets in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:22:26-04:00

Yes, a separation agreement is highly recommended as it outlines the division of assets and other terms agreed upon by both parties. It can prevent future disputes and is legally binding once signed. Consulting a Divorce Mediator or Certified Divorce Financial Analyst can ensure all aspects are fairly addressed.

If you own a business, how is it split in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:18:07-04:00

A business owned during the marriage is considered a matrimonial asset. Its value will be assessed and included in the asset division. Options include selling the business and splitting the proceeds or one spouse buying out the other’s interest. Professional advice is crucial in valuing and dividing business assets fairly.

What happens to debts when splitting assets in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:16:11-04:00

Debts incurred during the marriage are considered matrimonial debts and are typically divided equally between the spouses. This includes mortgages, credit card debts, and loans. A Divorce Mediator or Certified Divorce Financial Analyst can assist in determining a fair division of debts.

Can you keep your inheritance in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:14:08-04:00

Yes, inheritance is generally excluded from matrimonial assets if it has been kept separate from marital property. However, if it has been co-mingled with joint assets, it may be subject to division. Consulting with a family lawyer can help clarify how inheritance should be treated in your specific case.

Do you have to share your pension in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:11:17-04:00

Yes, pensions are considered matrimonial assets and must be shared in a divorce. The value accrued during the marriage is subject to division. A Certified Divorce Financial Analyst can help determine the value of the pension and how it should be divided to ensure a fair settlement.

How is the family home split in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:09:33-04:00

The family home, known as the matrimonial home, is typically divided equally between spouses, regardless of whose name is on the title. This can involve selling the home and splitting the proceeds or one spouse buying out the other’s share. A Divorce Mediator or Certified Divorce Financial Analyst can help negotiate the best outcome.

What assets are considered in a divorce settlement in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T14:07:45-04:00

In Ontario, matrimonial assets include all properties acquired during the marriage, such as the family home, savings, pensions, investments, and debts. Assets acquired before the marriage or through inheritance may be excluded. Consulting with a professional can help identify and value these assets accurately.

Is a prenuptial agreement considered when splitting assets in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T13:14:41-04:00

Yes, a prenuptial agreement is considered when splitting assets in Ontario. It outlines the division of assets in the event of a divorce, and courts generally uphold these agreements if they are deemed fair and were entered into voluntarily. Consulting with a family lawyer can ensure the prenuptial agreement is correctly applied.

Why is it important to split assets fairly in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T13:13:13-04:00

It is important to split assets fairly to ensure that both parties can move forward financially stable and that any children involved are provided for. Fair asset division can reduce conflict and foster a more amicable post-divorce relationship. A Divorce Mediator or Certified Divorce Financial Analyst can help achieve a fair division.

Who decides how assets are split in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T13:11:26-04:00

In Ontario, assets are typically split based on mutual agreement between the spouses. If an agreement cannot be reached, the court will decide based on the principles outlined in the Divorce Act. A Divorce Mediator or Certified Divorce Financial Analyst can help facilitate an agreement to avoid court intervention.

Where can you get help for splitting assets in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T12:58:45-04:00

You can get help from Divorce Mediators, Certified Divorce Financial Analysts, and family lawyers. These professionals offer guidance on asset division, ensuring fair and efficient resolution. Many offer in-person and virtual consultations, making it easy to get the support you need.

When should you start splitting assets in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T12:57:27-04:00

You should start splitting assets as soon as you decide to separate. Early planning helps ensure a clear understanding of your financial situation, making the process smoother. A Divorce Mediator or Certified Divorce Financial Analyst can assist in organizing and valuing assets early in the separation.

What is the process for splitting assets in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T12:56:05-04:00

The process for splitting assets in a divorce in Ontario involves:

  • Identifying all assets and debts,
  • Valuing these assets,
  • Negotiating an equitable division,
  • Drafting a separation agreement, and
  • Finalizing the agreement through court if necessary.

Consulting professionals can help streamline this process.

Can you split assets without going to court in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T12:53:46-04:00

Yes, you can split assets without going to court in Ontario. This can be achieved through negotiation, mediation, or arbitration. Working with a Divorce Mediator or Certified Divorce Financial Analyst can facilitate this process, helping you reach a mutually agreeable settlement outside of court.

Do you need a lawyer to split assets in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T12:52:34-04:00

No, you do not necessarily need a lawyer to split assets in a divorce in Ontario. However, legal advice can be very beneficial. A Divorce Mediator or Certified Divorce Financial Analyst can also assist in reaching an amicable agreement, ensuring all legal aspects are covered without the need for court intervention.

How to split assets in a divorce in Ontario?Ken Maynard CDFA, Acc.FM2024-05-16T12:51:24-04:00

Splitting assets in a divorce in Ontario involves identifying and valuing all matrimonial assets, which include properties, investments, pensions, and debts acquired during the marriage. The goal is to achieve an equal division unless otherwise agreed upon. Consulting a Divorce Mediator or Certified Divorce Financial Analyst can ensure a fair and efficient process.

Example Net Family Property Calculation

John J Smith Amount
Assets
Value of  Real Estate $1,200,000
Household (Cars, Boat Furniture, etc.) $55,000
Financial Accounts (Pension, Savings, RRSP etc.) $350,000
Other $15,000
Subtotal of Assets $1,620,000
Liabilities
Mortgage $275,000
Car Loan $9,000
Tax Allowance on RRSP and Pension $45,000
RE Disposition Cost $66,000
Subtotal of Liabilities $395,000
Date of Marriage Deduction
RRSP $12,000
Student Loan ($4,000)
Subtotal of Date of Marriage Deduction $8,000
Excluded Property
Kids RESP $23,400
Inheritance $50,000
Subtotal of  Excluded Property $73,400
Net Family Property Summary
Total Assets $1,620,000
Less Total Liabilities $395,000
Less Total Marriage Deduction $8,000
Less Total  Excluded Property $73,400
Net Family Property $1,143,600

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Discover free legal advice resources in Ontario to help you navigate the complexities of separation and divorce. Learn about various services, including legal information centers, hotlines, and pro bono clinics, designed to provide support and guidance during these challenging times. Empower yourself with the knowledge and resources to make informed decisions for your family's future.

About the Author:
Ken Maynard CDFA, Acc.FM

I assist intelligent and successful couples in crafting rapid, custom separation agreements that pave the way for a smooth transition towards a secure future. This efficient process is achieved in about four meetings, effectively sidestepping the excessive conflicts, confusion, and costs commonly linked to legal proceedings. Clients have the flexibility to collaborate with me either via video conference or in-person through a DTSW associate at any of our six Greater Toronto mediation centers, located in Aurora, Barrie, North York, Vaughan, Mississauga, and Scarborough.

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Ken Maynard CDFA, Acc.FM2024-06-11T12:20:34-04:00