For married couples in Ontario, property division is a legal right called equalization. For common law couples, there is no such right but rather rather a variety of property claims.
Both parties’ financial disclosure is required to resolve property issues. Each party completes a Form 13.1 Financial Statement, which is sworn/affirmed under oath setting out each party’s financial circumstance such as income, assets and debts.
Generally, for married couples, the party whose “net family property” (net growth during the marriage) is greater will pay the other party one-half the difference between the parties’ net family properties. For example, if John’s net family property is $50K and Sarah’s net family property is $250K, then Sarah pays John an equalization of $100K.
Several issues arise in this calculation such as the fair market value of an asset, hidden assets, pension, exaggerated debts, inheritance, gifts, etc. Legal assistance is recommended.