Ontario’s family law provides a statutory regime or framework for the orderly division of family property between married spouses. These rules do not apply to common law spouses. The date of marriage and the date of separation are the starting and end points for determining the value of family property. Each of you calculates your net family property by adding the value of all of your property on the date of separation (the valuation day ~ V-Day), subtracting the amount of your debts on V-Day, subtracting the value of property you owned prior to the marriage as at the date of marriage and excluding the value of gifts or inheritances which exist on V-day. The result is your “net family property” (NFP).
Family property means real estate, bank accounts, R.R.S.P.’s, stocks, bonds, businesses, pensions, automobiles, motorcycles, household contents, art, jewelry, furniture, etcetera. The value of gifts and inheritances are excluded. The value of the property owned on V-Day but acquired prior to marriage, other than a matrimonial home, may also be deducted. The onus of providing the value of the asset rests on its owner.
Your Net Family Property is compared to your spouse’s NFP and whoever has the greater NFP, pays one half of the difference to the other, to “equalize” the value of each party’s NFP as a result of the separation. The equalization payment can be made in cash or by transferring assets like R.R.S.P.’s or other property. The division of the value of your property in this way whether by Court Order or by agreement will be final.
Please Note: This information is not intended to contain advice specific to your situation. There are no cookie cutter solutions. After all, you are reading this information on the internet. Your situation is special and unique and you must be guided by specific individual advice from your Lawyer, Certified Financial Planner or Accountant.
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