Many people enter a separation assuming that everything gets split in half. That assumption leads to poor decisions early in the process.
The equalization model in Ontario
Ontario uses an equalization of net family property model, not a simple asset-splitting approach. Each spouse calculates the growth in their net worth during the marriage. The spouse whose net worth grew more pays the other half the difference. The family home gets special treatment - it has no deduction for its value at the start of the marriage.
This distinction matters enormously if one partner owned property before the relationship began.
What provinces differ on
British Columbia, Alberta, and Quebec each have distinct frameworks. Common-law couples face different rules than married couples in most provinces. A resource written for one province may describe a system completely unlike yours.
- Each provincial government website publishes a separation and divorce section - start there
- The Wills, Estates and Succession Act summary (for BC) and the Family Property Act (for Alberta) are readable starting points
- Legal Aid Ontario publishes a net family property calculation worksheet in plain language
The valuation question no one asks soon enough
Property must be valued as of the date of separation. Deciding what that date was can itself become a point of dispute. Writing down the date you consider your separation to have begun - and keeping records from around that time - is a small step that can prevent significant disagreements later.