How are assets divided in a divorce?
Assets accumulated during a marriage are divided evenly between both spouses. This includes any appreciation in value on assets that were brought into the marriage. With the exception of the matrimonial home, a date of marriage deduction is provided for any assets which were brought into the marriage. The value of the date of marriage deduction is not split between the spouses.
How are assets divided in a common-law relationship?
Assets in a common-law relationship are divided based on ownership of the asset. This means that the owner on title retains the full value of the asset. However, in some cases there can be a claim for a portion of the value of the assets (called a constructive and/or resulting trust claim) if the non-owning party made contributions (e.g., paying for the maintenance or renovations of a property).
What is a matrimonial home? Is a vacation home included? How is it different from other properties or assets?
The matrimonial home is defined as any property that is ordinarily occupied by the family. This includes the principal residence, but could also include cottages and vacation homes. The matrimonial home differs from other assets, in that it is divided equally between spouses regardless of whether it was brought into the marriage by one party.
What happens to our home? Who gets to keep / live in the home?
Both spouses have the right of possession. What happens to the home depends on the wishes of both parties. For example, the parties can agree to sell the home or they could agree that one spouse buys the other spouse’s interest in the home and gets to live in it.
Do I need to vacate the matrimonial home if my spouse asks to separate?
No, both spouses have the right of possession and therefore must agree on having one spouse vacate the matrimonial home. Even if the spouses disagree, neither spouse can make the other spouse vacate the home.
Will I lose property rights if I move out of the home?
No, you do not lose any property rights by moving out of the matrimonial home. However, by moving out of the home, you may be at a higher risk of your spouse obtaining exclusive possession of the matrimonial home, which would prevent you from re-entering the home without their consent.
Can my spouse sell assets during the divorce process?
A spouse cannot sell any jointly held assets during a divorce proceeding unless they have consent from the other spouse. However, they can sell any assets held in their name alone. There are other specific circumstances and nuances which a family lawyer can provide guidance on.
I brought the matrimonial home into our marriage, do I get to keep it?
Yes, if the matrimonial home is solely held by you. However, you do not get a date of marriage deduction for the value of the matrimonial home, which means that you will still need to split the financial interest in the home with your spouse.
What happens if our matrimonial home is owned by my parents, in-laws or other relatives?
The outcome depends on the specific circumstances, which can be complex to understand and navigate. A family lawyer can provide guidance based on your specific facts and circumstances.
My spouse incurred a significant amount of debt during the marriage, what happens?
You can seek an unequal division of net family property to account for the debt. This could result in your spouse taking on the liability associated with the debt.
How are gifts and inheritances treated in a divorce?
They are excluded from the division of net family property if you can provide proof of the transfer of the gift or inheritance, and provided that the asset was kept separate from other joint assets.