Family law · Ontario
Net family property calculator, Ontario.
Enter each spouse's property on the valuation date and on the date of marriage to estimate the equalization payment under the Ontario Family Law Act.
In Ontario, the spouse with the lower net family property is entitled to one-half of the difference between the two (Family Law Act s. 5(1)). A net family property below zero counts as zero. This applies to married spouses, not unmarried partners.
Inputs
Equalization estimate
Enter the figures and press Calculate.
Worked example
Spouse A has property of $800,000 and debts of $200,000 on the valuation date, and on the wedding date owned $40,000 of non-home property with $10,000 of debts. Net family property is $800,000 − $200,000 − ($40,000 − $10,000) = $570,000. Spouse B has $200,000 of property, $100,000 of debts and nothing on the wedding date, so $100,000. The difference is $470,000 and Spouse A pays $235,000.
How net family property works
Section 4 of the Ontario Family Law Act defines net family property as the value of all property a spouse owns on the valuation date, except excluded property, after deducting the spouse's debts and liabilities (including contingent tax liabilities) and the net value of property, other than a matrimonial home, that the spouse owned on the date of marriage. If the result is below zero it is deemed to be zero. The valuation date is the earliest of the separation date (with no reasonable prospect of reconciling), the divorce date, the date the marriage is declared a nullity, the date of a granted improvident-depletion application, or the day before a spouse's death. Whoever claims a deduction or an exclusion must prove it.
Excluded property includes gifts and inheritances from third parties after the marriage (but not a matrimonial home), certain damages, life insurance proceeds payable on death, property traceable to those, property excluded by domestic contract, and unadjusted pensionable earnings under the Canada Pension Plan.
Equalization. The spouse with the lesser net family property is entitled to one-half of the difference (s. 5(1)). A court may award more or less if equalizing would be unconscionable, for reasons that include undisclosed debts at marriage, reckless depletion, or an amount that is disproportionately large for a cohabitation under five years (s. 5(6)). A court can order payment in instalments or delay it for up to ten years in some cases (s. 9). An application generally must be brought by the earliest of two years after divorce, six years after separation, or six months after the first death (s. 7(3)).
What this tool leaves out. It does not value property, pensions or businesses, trace excluded property, apply s. 5(6) adjustments or handle a spouse's death. The matrimonial home gets special treatment: it is never excluded as a gift or inheritance, and its date-of-marriage value is not deducted. Treat the output as a rough check and have a lawyer review it.
Frequently asked questions
How do you calculate equalization of net family property in Ontario?
Work out each spouse's net family property: property owned on the valuation date, less excluded property, less debts, less the net value of non-home property owned at marriage. The spouse with the lower figure is entitled to half the difference.
What is the valuation date in Ontario?
The earliest of: the date the spouses separate with no reasonable prospect of resuming cohabitation, the date a divorce is granted, the date the marriage is declared a nullity, the date an improvident-depletion application is granted, or the day before a spouse dies.
Does equalization apply to common-law couples in Ontario?
No. The Family Law Act's property equalization (Part I) uses "spouse" to mean married people, so unmarried partners do not use this formula. Property claims for unmarried partners follow different rules.
What property is excluded from net family property?
Gifts and inheritances from a third person after the marriage (other than a matrimonial home), certain personal-injury damages, life insurance proceeds on death, property traceable to these, property excluded by a domestic contract and unadjusted CPP pensionable earnings.
How long do I have to claim an equalization payment in Ontario?
Generally the earliest of two years after the divorce, six years after separation or six months after the first spouse's death (s. 7(3)). Extensions are possible only in limited cases, so get legal advice early.
What if one spouse's net family property is negative?
It is deemed to be zero. The other spouse's net family property is then split: the lower spouse is entitled to half of it.
Sources
Checked
Definitions, exclusions, the equalization rule and limitation periods are quoted from the consolidated statute. Runs entirely in your browser. Nothing you type is sent or stored.
Estimate only — not legal or tax advice
This is an estimate based on the figures you type, using the statutory formula. It is not legal advice and does not value property, apply court discretion or consider the s. 5(6) unconscionability factors. Consult an Ontario family lawyer.