Division of Property
Written in plain language for general understanding. This is educational content, not legal advice. Based on Canadian federal statutes and official sources.
What is this right?
Property division in Canada is governed by provincial law, not federal. The general principle is that property acquired during the marriage should be divided fairly — usually equally. Most provinces use a system called equalization.
The matrimonial home gets special treatment. Both spouses have an equal right to stay in the home regardless of whose name is on the title. In Ontario, the full value of the home is included in equalization even if one spouse owned it before the marriage.
Common-law couples have significantly fewer rights in most provinces. British Columbia and Saskatchewan are the exceptions — they give common-law partners property division rights after two years. In Ontario and most other provinces, there is no automatic division for common-law partners.
When does it apply?
Property division rules apply in these situations:
- Married couples in all provinces — triggered at the date of separation.
- Common-law couples in BC and Saskatchewan — after two years of cohabitation.
- Ontario and most other provinces — common-law partners have no automatic right to property division.
What should you do?
- Determine which provincial law applies — this depends on where you live, not where you married.
- Get the valuation date — this is usually the date of separation.
- List all assets and debts — bank accounts, pensions, investments, real estate, vehicles, and debts.
- Identify excluded property — inheritances, gifts from third parties, and property owned before the marriage may be excluded.
- Get professional valuations for real estate, businesses, and pensions.
- Common-law partners should consult a lawyer about possible unjust enrichment claims if there is no automatic right to division.
What should you NOT do?
- Don't sell, transfer, or hide assets — courts can reverse transactions and penalize you.
- Don't leave the home assuming you lose your rights — both spouses have a right to the matrimonial home.
- Don't assume "what's mine is mine" — property acquired during the marriage is generally shared.
- Don't ignore debts — both sides of the balance sheet are considered in equalization.
- Don't rely on informal agreements — get everything in writing and ideally signed with independent legal advice.
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