Equalization of net family property
How Ontario divides the growth in spouses' wealth during the marriage, and the matrimonial-home rule.
When married spouses separate, Ontario does not divide their assets item by item. Instead, under sections 4 and 5 of the Family Law Act, it equalizes the growth in their wealth during the marriage. This applies to married spouses only. Common-law partners have no automatic equalization right.
Each spouse calculates their net family property (NFP): the value of everything they own on the separation date, minus their debts on that date, minus the value of what they brought into the marriage. The spouse with the higher NFP pays the other half the difference. That payment is the equalization payment. If one spouse's NFP grew by $300,000 and the other's by $100,000, the difference is $200,000 and the equalization payment is $100,000.
The matrimonial home gets special treatment. Its full value on the separation date counts, and its value is not deducted even if one spouse owned it before the marriage.
Some property is excluded from NFP, including gifts and inheritances received during the marriage from third parties (if kept separate), and certain damages awards, provided you can trace them.
Estimate your number with our free equalization calculator.
How Ryan helps: Ryan builds the NFP calculation with you and flags excluded and traceable property early. A free consultation gets you a clear starting number.
Frequently asked questions
What is equalization of net family property in Ontario?
When a marriage ends, each spouse calculates the growth in their net worth during the marriage, called net family property, under Ontario's Family Law Act. The spouse with the larger increase pays the other half the difference. This is an equalization payment, not a physical splitting of individual assets.
Do common-law partners get equalization in Ontario?
No. Equalization of net family property under the Family Law Act applies only to married spouses. Common-law partners are not entitled to equalization. They can still pursue other claims, such as unjust enrichment or a constructive trust, to recover a share of property they helped acquire or maintain.
Is the matrimonial home treated differently in equalization?
Yes. The matrimonial home gets special treatment under the Family Law Act. You cannot deduct its value as a date-of-marriage asset, even if you owned it before marrying. Both spouses also have an equal right to stay in it until the issues are resolved, regardless of whose name is on title.
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