As any experienced family lawyer could explain, dividing the family property is a critical aspect of any Ontario divorce. The law requires each spouse to benefit equally from the marriage. Although this sounds straightforward, in practice, it can become complicated quickly.
Working with an Oakville property division lawyer from The Riley Divorce & Family Law Firm is crucial when you are going through a divorce. Our knowledgeable lawyers could explain the law, defend your rights, and help you obtain a property settlement that meets your goals in the divorce.
The law requires that you and your spouse leave the marriage with equal shares of the property you acquired during your marriage. The process is called equalization of net family property. Put simply, you and your spouse must each calculate your net worth on your wedding day. You also must calculate your net worth on the day you separated from your spouse. Subtracting your net worth when you were married from your current net worth results in your net family property.
The spouse with more net family property must split the difference with the other spouse. They can transfer property of the appropriate value to the poorer spouse, make an equalization payment, or transfer property plus cash. An Oakville lawyer can help ensure the arrangements are appropriate and result in a fair property distribution.
Before equalizing net family property, the spouses must understand what property to include in the calculation. Family property is everything either spouse acquired during the marriage that still exists at the time of separation. The matrimonial home is treated separately, and its value is not a part of the net family property calculation.
Certain property other than the matrimonial home is excluded from the net family property calculation. Property can be excluded from the calculation if both spouses agree to do so in a valid prenuptial or postnuptial agreement. When one party owned real property before marriage, still owns the property, and it was not treated as a matrimonial home, its value is excluded from the net family property calculation. Other exceptions include:
Although these assets are not included in the net family property calculation, any increase in their value during the marriage is family property. Spouses sometimes dispute whether a specific asset should be included in the net family property calculation. They also might have conflicts over the value of family assets. The Oakville legal professionals at The Riley Divorce & Family Law Firm could effectively protect your property rights and ensure the property equalization process is accurate and fair.
The matrimonial home is not included in the net family property calculation. According to the Ontario Family Law Act s.18, any residence you and your spouse were using as a dwelling at the time you separated could be considered a matrimonial home.
Cottages, chalets, vacation condos, and other secondary residences could be considered matrimonial homes. A couple can have multiple matrimonial homes. However, they are only treated separately in a divorce if they are located in Ontario. A cottage in Quebec would not be a matrimonial home even when the family spent considerable time there, and it would be included in the net family property calculation.
Both spouses have equal rights to possess the matrimonial homes. When the couple has children, it is often beneficial to allow the spouse who assumes primary custody to keep the matrimonial home and buy out the other spouse’s interest. When there is limited cash to buy out a spouse, a legal professional in Oakville could arrange a transfer of other property or offsets from an equalization payment to accomplish a fair division.
Your property settlement will affect your life post-divorce for years to come. Contact the skilled legal team at The Riley Divorce & Family Law Firm when you need help. We are available 24/7 to answer questions and address any concerns.
Our Oakville property division lawyers have the knowledge and skills to secure your financial future after a divorce. Get in touch today.
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