Property issues are treated differently in Ontario depending on whether you are married or you were living in a common-law relationship with your spouse.
Property Division for Married Spouses
When you are married in Ontario and you get separated from your spouse, you must deal with your home, bank accounts, investments and other property as part of your separation or divorce.
Ontario family law has a very specific formula for dealing with property division. In a nutshell, the formula states that the spouse who has a lower net worth is entitled to get half of the value of the difference in the net worth between the two spouses. That sounds like a mouthful and it is.
Here’s an easy example:
If the husband has a net worth of $200,000 and the wife has a net worth of $100,000, the husband must pay $50,000 to the wife. This $50,000 is half of the value of the difference in the net worth of the two spouses in this example. Specifically, deduct the wife’s net worth of $100,000 from the husband’s net worth of $200,000 and the result is $100,000. Then you divide the $100,000 by 2 which equals $50,000. This $50,000 is called an equalization payment.
This example is a very simple case. You need proper legal advice from an experienced family law and divorce lawyer to make sure you calculate or determine the proper equalization payment in your case.
For example, you get to deduct the net worth of your assets that you owned on the date of marriage in determining the equalization payment. You must also make sure you deduct your debts or liabilities that you have on your date of separation to calculate your net worth.
You can see how determining property division can become very complicated very quickly.
Another important exception is that you cannot deduct the value of the matrimonial home if you owned the same home both on the date of marriage and the date of separation.
You must make sure you get a proper pension valuation when you spouse has a traditional pension with their employer.
There are many steps to this complicated property division process in Ontario for married spouses.
Property Division for Common-Law Spouses
You cannot make an equalization claim when you are not married to your spouse. However, you can make a claim against your spouse if you have made contributions to your residence, for example, and you are not title to this property.
Again, you must see an experienced family law and divorce lawyer to understand and protect your property rights when you are living in a common-law relationship.
Durham Region-Ajax Family Law and Divorce Lawyer
Just imagine how much easier your life will become when you use Thomas O’Malley, a veteran family law and divorce lawyer, to protect your property rights in your separation or divorce.
As a matter of fact, you’ll know right from the start how to protect your family law rights when you come to your first meeting with Mr. O’Malley. But more importantly, you won’t lose any more sleep over how to get a fair and reasonable settlement that solves your family law issues so that you can move on with your life.
It’s a nice feeling to finally be able to let go of some of your worries and concerns about your separation or divorce when you have a top-notch family lawyer working for you to protect your legal rights, isn’t it? Don’t settle for anything less.
Call Thomas O’Malley now at (905) 434-8837(905) 434-8837 to set up your first meeting to find out how to protect your family law rights. It’s time for action. Call today!