There will be an equalization process of the net family property, when married people separate. Marriage is normally considered a financial partnership, and when the marriage ends and going to divorce, the benefits of that partnership are meant to be shared by both parties.

The division of property after a divorce is often a main issue between the couple, especially  if there is no marriage contract agreement. Expectations sometimes run counter to a spouse’s actual property entitlement, which leads to uncertainty.

WHAT IS CLASSIFIED AS PROPERTY?

In this case the property includes assets, debts accumulated throughout the marriage, pensions, joint bank accounts, their house, commercial property and business property.

Toronto family law states that the value of any property or assets acquired during a marriage that is still in existence available at the time of divorce must be shared equally between couple. The appreciation in the value of property owned at the time of marriage must also be shared equally between couple. This method of sharing the property or assets is referred to as equalization.

HOW ARE DEBTS SPLIT IN OTTAWA DIVORCE CASES

The approach to splitting marital debt is a little different compared to marital assets. The way the court ultimately splits these debts will depend on which spouse is the named party.

To begin with, spouses are responsible for any debt that is in their name only. This is true of any debt they took prior to the marriage, but it also applies to debts incurred during the marriage as well. In such a situation, the court will split those debts evenly between both spouses.

What is EQUALIZATION PROCESS?

The process of equalization includes some following steps:

  • A detailed evaluation is done of each spouse’s financial position from the start date of marriage and the end date of marriage or time of separation.
  • For each date, the spouses’ assets are added, and his or her liabilities or debts are deducted. This gives a net value for each spouse on the relevant dates.
  • The financial position at the time of marriage is subtracted from the financial position at the time of separation to determine each spouse’s net family property (NFP). 
  • The lower net family property value is deducted from the higher net family property value. The difference is then divided by 2 to determine the equalization payments.

THE MATRIMONIAL HOME

The matrimonial home at the time of marriage receives special consideration under the Family Law Act. Regardless of whose name is on the title, both spouses have a right to the home. Hence, any sale or rental of the home has to be a consensus of both parties. It is a misconception that through a marriage contract one spouse can limit the other’s rights to the home.

If both parties cannot agree on what to do with the matrimonial home, they may need to take the matter to court for a judge to decide. 

EXCEPTIONS

While the method of equalization may seem simple, it is often complicated by gifts and inheritances, properties owned outside of Canada, hidden assets, businesses owned by one spouse, etc. 

These assets can and most times end up being exceptions to property division in Toronto if they were received during the marriage from someone other than a spouse.

The division of property is not a simple task and can result in disputes between spouses. Disputes can create delays in a divorce which can make the process tedious. 

LET AN OTTAWA PROPERTY DIVISION LAWYER HELP

Making sense of the regulations and restrictions imposed on divorcing spouses in Ottawa can be crucial during the asset division portion of your case. Help is always available from a dedicated legal representative lawyer who knows how to handle situations and how to guide clients with their best approaches legal expertise.

ARE YOU IN NEED OF DIVORCE LAWYER IN OTTAWA?

If you need help with property division in Ottawa after the divorce in Ottawa, consult our experienced divorce lawyers.

As we have more than 10 years of experience, we take care of a wide range of legal matters that may arise in a divorce. The efficiency and effectiveness of our lawyers will save you time, money, and a great deal of trouble.

Contact us today to set a free consultation.