What is Equalization?

Ontario law expects that married spouses will usually share the value of their property if they separate or get divorced. You may have heard of the term “equalization” – that term refers to the concept that the spouse who has more property or comes out ahead financially when the spouses separate usually pays money (the “equalization payment”) to the spouse who has less property than them. Debts are factored into this calculation too – each party will usually continue to be responsible for the repayment of their own debts in most cases, but debts accumulated during the marriage will usually offset some or all of the financial gains the party with the debt has made.

There is no “Community Property” in Ontario

If you’ve ever heard the term “community property”, meaning a system where spouses actually split up the physical property accumulated during the marriage 50/50 no matter who purchased it, it’s important to know that, that is not how the legal system in Ontario works. In Ontario, we simply equalize the value of the property between the parties.

Does Equalization Apply to Me?

Equalization does not apply to common law couples who did not get married, people who were married in Ontario but last lived together somewhere else before they separated, or in some cases to people with marriage contracts (prenuptial agreements, or “prenups”) if they have contracted out of this part of the system. On the other hand, even if you were originally married outside of Ontario but last lived together in Ontario before separating, Ontario’s Family Law Act likely applies to you, and you should contact an Ontario family lawyer to discuss your situation in detail.

Do I need a family law lawyer?

A London Ontario family lawyer can help you sort through whether this system applies to your case. Whether you’re hoping to settle your case amicably with a separation agreement, or whether you think you will need to go to court, our office accepts family law cases across the region, including at the London and St. Thomas courthouses, and for parties who reside in Middlesex County and parts of Elgin County.

If you’d like to set up a consultation to speak to one of our lawyers and to find out more about your rights and obligations under Ontario family law, call us at 519-488-5263 or click here to send us an e-mail. Our group of family lawyers and law clerks are here to help you.