Division of Property in Ontario
Reviewed by the Commoner Law Editorial Team. Sourced from Canadian federal statutes and official sources. Provincial information reflects each province's own legislation and court rulings. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
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 to Do If Your Spouse in Canada Is Hiding or Transferring Assets Before Divorce
- 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.
How Ontario differs from federal law
Ontario has a unique equalization of net family property system under the Family Law Act. It works differently from most other Canadian provinces.
- Ontario does not divide property 50/50. Instead, each spouse calculates their net family property (NFP): the value of all assets accumulated during the marriage minus debts and minus the value of assets brought into the marriage. The spouse with the higher NFP pays the other spouse half the difference — this is the equalization payment.
- The matrimonial home gets special treatment: its full value on the date of separation is included in NFP regardless of when it was acquired or who owns it. A spouse cannot sell or mortgage the matrimonial home without the other's consent, even if only one spouse is on title (section 21, Family Law Act).
- Excluded property (gifts and inheritances received during the marriage, life insurance proceeds, and certain other items) is deducted from NFP — but only if it has not been used to acquire the matrimonial home.
- Common-law partners do not have automatic property rights under the Family Law Act. The equalization system only applies to legally married spouses. Common-law partners may have claims based on unjust enrichment or constructive trust (case law), but these are harder to prove.
- The equalization claim must be brought within 6 years of separation or 2 years of a divorce, whichever is first.
Additional Steps in Ontario
Make a list of all assets and debts — both at the date of marriage and the date of separation. Each spouse must complete a Financial Statement (Form 13.1) for the court. Consult a family lawyer to calculate equalization — the rules on excluded property and the matrimonial home can be complex. If you own a matrimonial home jointly or are on title, be aware of your consent rights under section 21 of the Family Law Act.
Relevant Law: Family Law Act, R.S.O. 1990, c. F.3, Part I (Family Property), ss. 4–7 (Equalization), ss. 18–28 (Matrimonial Home)
Common Questions
When does division of property 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 I do if I think my spouse in Canada is hiding assets or transferring property before our separation?
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 mistakes should I avoid with division of property?
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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