Property Division

Property division in Toronto

When you and your spouse decide to separate, you will need to divide the value of any property acquired while married. This can be a complex and challenging process that sometimes requires the courts. A property division lawyer can explain your rights, outline the legal process, and help you negotiate a property division agreement.

When couples divorce, each is generally entitled to half of the net family property. When a couple has significant assets, valuing and equalizing property can be complex, time-consuming, and contentious. Sourena Sarbazevatan can address your concerns, goals, and priorities and help you secure a property division agreement that meets your needs.

Calculating net family property

Under section 5 of the Ontario Family Law Act, spouses equally divide the profits of their marriage. The difference between a spouse's net worth at the start of the marriage and their net worth on the separation date is the net family property (NFP). The spouse whose net worth increased the most owes the other an equalization payment equal to one-half of the difference between the two NFP figures, so each leaves the marriage having increased their wealth by equal amounts.

For example, if Spouse A started the marriage with a net worth of $50,000 and had $150,000 at separation, their NFP is $100,000. If Spouse B started with $10,000 and had $100,000 at separation, their NFP is $90,000. Spouse A's net worth increased $10,000 more, so Spouse A makes an equalization payment of $5,000 to Spouse B.

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The matrimonial home

The matrimonial home receives special treatment under Ontario property division rules. Any residence can be a matrimonial home if at least one spouse has an ownership interest and it is, or was at the time of separation, occupied as a family home. A vacation home or cottage can qualify, and you can have more than one. Special rules apply if the home is a working farm or the site of a business.

If you bought the home together, its value at the date of separation is used in each spouse's NFP. If one spouse owned the home used as the matrimonial home, its full value at separation is included in that spouse's NFP, which can greatly increase their equalization payment. Even where one spouse owns the home and the other has no ownership interest, the other has a right of possession: the owning spouse cannot mortgage or sell it without the other's permission, and a court may allow a non-owning spouse who is the children's primary caretaker to remain in the home to minimize disruption.

Identifying family property

Any property a spouse acquired during the marriage that still exists at separation is family property subject to valuation, regardless of who acquired it or whose name appears on title, unless it is expressly excluded. Property may be excluded if it is:

• a gift intended for only one spouse
• proceeds from a life insurance policy
• proceeds from a personal injury claim
• the property of one spouse under a valid marriage contract
• an inheritance to one spouse that is not a matrimonial home or traceable to one
• real property owned by one spouse at the time of marriage that is not a matrimonial home

When property is excluded from the family property calculation, any change in its value during the marriage may still be treated as family property.

High-net-worth divorces

High-net-worth couples often have diverse holdings, including trusts, pensions, real estate, businesses, collections, stock options, retirement funds, offshore accounts, investment portfolios, and household furnishings. Identifying every asset and liability requires accurate and complete financial disclosure. A lawyer can work with a Chartered Professional Accountant certified in financial forensics to locate hidden assets and ensure an equal division.

Common challenges

A common challenge is determining the true value of shared assets, which can include real estate, investments, and personal property such as art or jewelry. Valuation disputes can complicate the process, so it helps to have a lawyer who can engage reliable appraisers and financial experts. For the Iranian and Persian communities, working with a lawyer who understands the cultural implications, especially where family businesses or international assets are involved, can make a meaningful difference.

Debts are divided too

Property division is not only about assets. The net family property calculation also accounts for debts, including mortgages, lines of credit, credit-card balances, and taxes owed, at both the start of the marriage and the date of separation. This means that the way debt is treated can significantly change the final equalization figure, and it is an area where careful, accurate accounting matters. We make sure that both what you own and what you owe are properly valued and fairly divided.

Why choose Sarbazevatan Law

Although the principle that both spouses should share the financial benefits of their marriage sounds simple, putting it into practice can be complicated. Sourena Sarbazevatan provides valuable counsel, combining legal precision with cultural understanding and serving the Iranian and Persian communities with consultations in Persian, to protect your financial interests and secure a fair resolution. Do not attempt to handle property division without seasoned legal advice.

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