Glossary
Equalization Payment
An equalization payment is one cash payment from one spouse to the other to make sure each of you walks out of the marriage with the same value of property growth.
On the date of separation, calculate each spouse's Net Family Property — assets minus debts, minus what they brought into the marriage. Whoever has the higher NFP owes the other half the difference. Example: Party 1 walks out with $300K of growth during the marriage. Party 2 walks out with $100K. Difference is $200K. Party 1 owes Party 2 $100K to make it even. The payment can be made in cash, by transferring property of equivalent value, or over time with interest. It is paid once and ends the property division for good.
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