How Property Is Divided in Canada Divorce
Canada uses Varies by province: equalization (Ontario), family patrimony (Quebec), equal division (BC, Alberta). Understanding how your assets will be divided is often the biggest financial question in divorce.
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- ✓Legal system: Common law (except Quebec: civil law)
- ✓Property approach: Varies by province: equalization (Ontario), family patrimony (Quebec), equal division (BC, Alberta)
- ✓Key legislation: Divorce Act (R.S.C., 1985, c. 3)
- ✓Marital/community property generally includes assets acquired during the marriage
- ✓Pre-marital assets, gifts, and inheritances are often treated differently
- ✓The family home is usually the most significant asset to divide
- ✓Retirement accounts and pensions earned during marriage are typically divisible
What Is Typically Divided
- ✓Family home and real estate purchased during marriage
- ✓Bank accounts, investments, and savings accumulated during marriage
- ✓Retirement and pension rights earned during the marriage
- ✓Vehicles, furniture, and personal property
- ✓Business interests started or grown during marriage
- ✓Debts incurred during the marriage (mortgages, loans, credit cards)
What Usually Stays Separate
- ✓Property owned before the marriage (if kept separate)
- ✓Gifts and inheritances received individually
- ✓Personal injury compensation (in most jurisdictions)
- ✓Property excluded by prenuptial/marriage contract
- ✓Property acquired after separation (rules vary)
Common Issues
- ✓Commingling: mixing separate and marital assets makes tracing difficult
- ✓Business valuation: privately held businesses need professional appraisal
- ✓Hidden assets: forensic accountants can trace undisclosed property
- ✓International assets: cross-border property division adds complexity
- ✓Consult a qualified family law professional in Canada for specific advice
Every situation is different
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Legal Disclaimer: This article covers Canada divorce law for general informational purposes only and does not constitute legal advice. Laws change frequently. Always consult a qualified family law attorney or solicitor in Canada for advice specific to your situation.