Property Division (Married Spouses)

In Ontario, property division after separation depends significantly on whether the parties are married or common-law. For married spouses, the main legal framework is the equalization of net family property under the Family Law Act.

Equalization of Net Family Property
Generally, each married spouse calculates their Net Family Property (NFP)—the increase in their net worth from the date of marriage to the date of separation (called the “valuation date”). The spouse with the higher NFP typically pays the other an equalization payment to share the increase in wealth accumulated during the marriage.

Practical considerations
Property division can involve financial disclosure, business valuations, pensions, tax impacts, and tracing of excluded property. A negotiated settlement often focuses on fairness, liquidity, and implementability—not only the arithmetic.