Ontario Family Lawyers
from BTL Law
August 10th, 2024
Net Family Property (NFP) essentially represents the total value of all the property that each spouse owns on the date of separation, after deducting the debts and other liabilities.
In Ontario, the division of assets during a divorce is based on the equalization of the Net Family Property. Each spouse calculates their own NFP by determining the value of their assets at the date of separation, subtracting any debts, and then subtracting the value of assets owned at the date of marriage (unless inherited or received as a gift from someone other than the spouse). The spouse with the higher NFP pays half the difference between the two NFP values to the other spouse.
Family property refers to almost all property that either spouse acquires during the marriage and still possesses at the time of separation. It also includes the increase in value of any property owned by a spouse at the date of marriage, to the extent that the increase is still present at the date of separation.
Examples of Assets Included:
- Real estate properties (excluding the matrimonial home if it was owned by one spouse before marriage and still exists at separation)
- Investments (stocks, bonds, mutual funds)
- Business interests
- Retirement and pension plans
- Vehicles and other personal property acquired during the marriage
Certain assets are generally excluded from the net family property calculation, provided they were not used for family purposes or did not significantly change in nature during the marriage:
- Gifts or inheritances received during the marriage from someone other than the spouse, as long as these were kept separate
- Property, other than the matrimonial home, that was owned by one spouse at the date of marriage (the value at the date of marriage is deducted, but the increase in value during the marriage may be included)
- Settlements or damages awarded for personal injuries, pain and suffering, or other reasons not related to the marriage
- Life insurance proceeds (unless the spouse has designated the other spouse as a beneficiary specifically for the policy)
