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    What Happens to Your Property When You Divorce in Ontario
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    In Ontario, the Family Law Act (FLA) lays out how property is divided upon the breakdown of marriage. The formula in the FLA basically calculates the growth of each person’s net worth from the day of marriage to the day of separation (the “valuation date”) and then equalizes the difference between them.

    To determine the difference, each spouse calculates his or her net worth on the date of marriage and on the valuation date. The increase is referred to as the “net family property.” Once a net family property value has been determined for each spouse, the spouse with the greater net family property pays the spouse with the lesser net family property an “equalization payment” that is one-half of the difference between their net family property and their spouse’s.

    It is important to note that the matrimonial home is not included in the calculation of net worth on the marriage date, even if one spouse owned it prior to the marriage. Also, any gift or inheritance received during or before the marriage is excluded from the calculation entirely.

    Disclaimer: Content on this website is provided for informational purposes only and does not constitute a legal advice.

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