The Ontario Family Law Act sets out a scheme for dividing the property of married people when they separate. A formula is used to determine how much needs to be paid by one spouse to the other, the intention being that all of the assets accumulated during the marriage (subject to some exceptions) are to be divided. The formula is illustrated below:
(a) add up your assets on the date of separation;
(b) subtract your debts on the date of separation;
(c) subtract any gifts from third parties, inheritances or proceeds from a personal injury claim received during the marriage which were kept separate and are still in existence on the date of separation; and
(d) subtract your assets less any debt you had on the date of marriage (except for the value of the matrimonial home if it was owned at the time of marriage).
The resulting number is called your Net Family Property (NFP). Your spouse does the same calculation. The spouse with the higher NFP number has to pay the other one-half of the difference. It is difficult to accurately calculate the above numbers without completing a formal financial statement. Your lawyer can help you with this.