I want a divorce in Toronto. What happens to our property?

There is a specific structure relating to property division when people who are married decide to divorce in Toronto, Ontario:

Upon separation and divorce in Toronto, on the request of one of the parties, each spouse calculates his or her ‘net family property.’ This is done by deducting the value of a spouse's net asset position (being assets minus debts) on the date of marriage from the value of the spouse’s net asset position on the date of separation. The spouse with the greater net asset position will be required to pay one half of the difference to the spouse that has the lower net asset position. This payment that is made from one spouse to the other spouse is called an ‘equalization payment.’

There are exceptions to these rules, known as excluded property. Excluded property is property that does not have to be included in a spouse’s net family property in a divorce in Toronto. The value of that item is, therefore, not included in determining the equalization payment. For example, excluded property includes gifts or inheritances that are received during the marriage from a third party, so long as that money was not inextricably co-mingled with the other spouse’s assets.

In addition, a court has the power to award a spouse an amount that is more or less than half the difference between the parties’ net family properties upon a divorce in Toronto. This depends on whether an equalization would be considered “unconscionable” under s. 5(6) of the Divorce Act.