In Toronto, the division of property in a divorce is governed by the Family Law Act of Ontario. The Act provides for a system called “equalization of net family property”. This means that the net family property accumulated by the spouses during the marriage is divided equally. The key aspects of property division are explained in detail below:

1. Calculation of net family property.

  • Family Property:
    means all assets owned by the spouses during the marriage, including but not limited to:
    • Real estate (e.g., houses, condominiums, vacation homes)
    • Bank accounts and cash
    • Investments (e.g., stocks, bonds, mutual funds)
    • Retirement and old-age pensions
    • Automobiles and other vehicles
    • Jewelry and other valuables
    • commercial interest
  • PERSONAL PROPERTY:
    Refers to the following types of property, which are not counted as Net Family Property:
    • prenuptial property
    • Gifts or legacies acquired during marriage
    • Personal injury compensation
    • Specific types of trust property
  • Debts:
    All debts incurred by the spouses during the marriage will be deducted from the total value of the family property.
  • Net Household Property:
    Total value of household property minus total value of debt.

2. Equalization of net family property.

Once the net family property has been calculated, it is divided equally between the spouses. This means that each spouse is entitled to half of the net family property.

3. Exceptions.

Although equalization is the basic principle, there are certain circumstances in which the court may order that property not be divided equally, for example:
  • Short marriage: If the marriage was short, the court may find equalization unfair, especially if one party owned a large amount of property prior to the marriage.
  • Misappropriation of property by one party: If one party misappropriated or hid property during the marriage, the court may adjust the division of property to compensate the other party for the loss.
  • Domestic violence: If one of the parties suffers from domestic violence, the court may take this factor into account and adjust the property division ratio.
  • Other special cases: The court may, at its discretion, adjust the division of property according to specific circumstances, such as the state of health of one of the parties or the responsibility for the upbringing of the children.

4. Marriage agreements (prenuptial or nuptial).

Spouses can agree on different ways to divide property by signing a marital agreement. If the agreement is valid, the court will usually honor the terms of the agreement.

5. Importance of seeking legal advice.

Divorce property division is a complex process that involves many legal and financial issues. It is highly recommended that you consult with an experienced family attorney to understand your rights and obligations and to ensure that your interests are protected. An attorney can help you:

  • Evaluate your household assets and debts
  • Determine what property is family property and what is personal property
  • Negotiating a fair property division agreement
  • Represent you in court when necessary

IMPORTANT: The above information is for reference only and is not legal advice. Please consult a professional family lawyer for details.

JZW Law has a team of experienced high net worth divorce lawyers. Fluent in both Chinese and English, we are committed to providing professional legal services to high net worth individuals in Toronto. We specialize in handling complex issues related to property division, business ownership, trusts, overseas assets and more. We offer a free initial consultation and welcome you to contact us for more information or to schedule a consultation.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. If you need legal help, please consult a professional lawyer.