Tab 3
Property: Assets, Debts, Documents, and Equalization
This is the second-most-important tab after parenting and often the most tedious. The principle is simpler than it sounds.
The principle, in plain English
Ontario uses something called Net Family Property. On the separation date, what is each of you worth (assets minus debts)? What did you bring into the marriage? The difference is what you built up together. Whichever party built up more pays the other half the difference. That is called an equalization payment. So if you walked out with $300K of growth during the marriage and your spouse with $100K, the difference is $200K — you owe them $100K to even it out.
What counts as property
Real estate (the house, a cottage, a rental, vacant land). Vehicles (cars, trucks, motorcycles, boats, RVs). Bank accounts (chequing, savings, joint or sole). Investments (TFSAs, non-registered investments, GICs). RRSPs, RRIFs, and pensions (use the statement value but remember they are pre-tax). Businesses (need a business valuation if you own one). Personal property (furniture, electronics, jewellery, art — list anything valuable enough to argue about, not every fork in the kitchen). Debts: mortgage, line of credit, credit cards, student loans, car loans, tax debt.
For each item, you record
Type and description (e.g. "House at 123 Maple St" or "TD chequing account ending 1234"). Value (the worth on the separation date — be accurate, not optimistic). Owner (Party 1, Party 2, or both). Valuation date (usually the separation date, sometimes the marriage date for "brought-in" items). How you valued it (bank statement, appraisal, Kelley Blue Book, auto.ca, estimate based on a neighbour's recent sale).
How property gets divided
Sell and split (common for the house). Buyout (one party keeps it and refinances or pays the other their share). Transfer of title (one party keeps a vehicle, account, or RRSP outright). Equalize at the end (list everything, one big payment levels it). Retain (each party keeps what is in their name, one cash payment balances the rest).
Common scenarios
The house was yours before marriage: the value at the date of marriage stays with you. The growth during the marriage gets shared. Inheritances and gifts from third parties (not from your spouse) can be excluded if you kept them separate. If you put a $50K inheritance into the joint account that paid the mortgage, it is now shared. RRSPs at $200K are pre-tax — the agreement can apply a tax discount and divide on after-tax value.
Ready to start your agreement?
Use the calculator to estimate support, or start a guided Ontario separation agreement now.