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Property Division

In Ontario, married couples are legally entitled to a division of family property when a marriage ends. The law treats marriage as an equal partnership, where both spouses contribute—whether financially, through childcare, or household responsibilities. A skilled family lawyer can help ensure that these contributions are recognized and that both parties benefit fairly from the wealth accumulated during the marriage. In many cases, one spouse’s net worth increases significantly more than the other’s. The Ontario Family Law Act requires that marital property be divided in a way that reflects the economic impact of the separation on each spouse.

The Family Law Act sets out the calculation for the division of property upon the breakdown of marriage. The calculation is based on the principle that spouses are to split the difference between the growth of each spouse’s net worth starting from the date of marriage up until the date that they separate. The growth in each spouse’s net worth is referred to as the “net family property.”

The law is different for common law spouses. An unmarried individual who cohabits with their partner does not automatically acquire property rights. Common law spouses may have to bring a trust claim such as a constructive trust or a joint family venture in order to prove entitlement to an interest in property.

An unmarried spouse claiming an interest in property owned by the other spouse must prove that he or she made a susbtantial contribution to the property. For example, if one spouse owned the family residence, and the spouse not on title contributes either money or work (“sweat equity”) to the improvement of the property, such as renovations or upgrades  he or she may make a claim against the value of the property.

 

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