Property Claims

For married spouses, the property-sharing scheme under the Ontario Family Law Act is called equalization of net family property. The equalization process begins by calculating each spouse’s net family property (NFP), which represents the increase in their net worth between the date of marriage and the date of separation. The NFP of each spouse is then compared. If one spouse’s NFP is higher, that spouse must pay the other half the difference between the two NFPs. This ensures that the financial gains accumulated during the marriage are shared equitably.

To facilitate this calculation, spouses exchange detailed financial disclosure forms called Form 13.1: Financial Statements, in which they report their assets and debts as of the date of marriage, the date of separation, and the current date. It is also common practice to exchange Disclosure Briefs for the parties to provide supporting documentation for the entries in their Form 13.1: Financial Statements.

Certain assets may be excluded from equalization, such as gifts or inheritances received from third parties during the marriage, provided they are maintained in a way that allows them to be traced. In some cases, the equalization payment may be deemed unconscionable. For these reasons and others, legal advice is strongly recommended.

For common-law couples, there is no automatic right to share in the solely-owned property of your spouse. Property is generally retained by the legal owner, and disputes are resolved based on joint ownership or equitable (or trust-based) claims. These claims often arise when one partner has contributed to property or assets owned by the other and the court determines that it would be unjust for the owner to retain the benefit without compensating the contributor.