Use the information in your to calculate your (NFP). NFP tells you how much money you are worth at the end of your relationship after taking into account what you brought into the marriage.
To calculate your NFP, you first add together all and subtract all that you had at the end of your relationship or your separation. This is usually on the day you and your partner separated. Then you also subtract all assets less all debts you had on the day you .
Remember that some assets or debts are treated differently in this calculation. For example, some gifts and inheritances are not included.
There are instructions on the Form 13.1: Financial Statement (Property and Support Claims) that tell you what items to add and subtract.
Your partner calculates their NFP the same way.
Example calculation of NFP for each partner
| Married partner A | |
|---|---|
| Now (Separation Date) = assets – debts | $100,000 |
| Then (Marriage Date) = assets – debts | $20,000 |
| Now – Then | $80,000 |
| NFP for Married partner A is $80,000 |
| Married partner B | |
|---|---|
| Now (Separation Date) = assets – debts | $55,000 |
| Then (Marriage Date) = assets – debts | $25,000 |
| Now – Then | $30,000 |
| NFP for Married partner B is $30,000 |
If your NFP calculation is a negative amount, your NFP is considered to be zero.
4. Calculate the equalization payment
The partner with the higher (NFP) owes the other partner half of the difference between the NFPs. This is the .
Example
Married partner A's NFP = $80,000
Married partner B's NFP = $30,000
Married partner A's NFP – Married partner B's NFP = $50,000
$50,000 divided in half = $25,000
Equalization Payment: Married partner A pays $25,000 to Married partner B
You can use Form 13B: Net Family Property Statement to compare your NFP and your partner's NFP. This makes it easier to calculate the equalization payment. Form 13B uses the information from your Form 13.1: Financial Statement (Property and Support Claims).
Dividing property unequally
Sometimes married partners divide property unequally. This is called an “unequal division of net family property”.
Courts rarely make an order to divide property unequally. You have to show the judge why an equal division of net family properties is “unconscionable”. This means that equally is more than just unfair, it must “shock the conscience of the court”. This is difficult to prove in court.
Here are some examples of when this might happen:
- One partner doesn't tell the other partner about they had on the date of marriage.
- One partner has debts that were incurred recklessly or in bad faith. For example, this may be debts from secret gambling.
- The amount of the equalization payment is large and the marriage lasted for less than five years.
- Both partners agreed on how to divide property but didn't sign a . For example, both partners exchanged emails that showed how they agreed to divide property but never officially signed an agreement.
5. Make an agreement or apply to court
If you and your partner agree, you can make a separation agreement that says how you divide your property and . This usually says who pays the other an .
The law also allows you and your partner to make a separation agreement that divides things in a different way than through an equalization payment. You can even agree not to divide property and debts at all.
But most people use the equalization payment at least as a guide when deciding how to divide property because that is what they usually have the right to under Ontario law. So they look at this first before deciding if they want to agree to divide their property differently.
If you and your partner can’t agree, you can ask a family law professional to help you resolve your issues. Or, you can go to court and ask a judge to decide.
Choose the right court
There are 3 courts that deal with family law issues in Ontario. These are the:
- Ontario Court of Justice
- Superior Court of Justice
- Family Court branch of the Superior Court of Justice
It is important that you go to the right court. You have to start your case in a court that:
- Deals with the family law issues you need to resolve. For example, the Ontario Court of Justice doesn't deal with divorces or dividing property, so you would have to go to either the Superior Court of Justice or Family Court branch of the Superior Court of Justice.
- Is in the municipality closest to where you or your partner live. But, if your issues include , , or , you should go to the court in the municipality where your child lived before you and your partner separated. Decision-making responsibility and parenting time used to be called and .
If you're not sure which court to go to, call the family courthouse in your municipality to ask.
Time limit
The time limit to make a claim in court for an equalization payment is 6 years after you and your partner separate or 2 years after you , whichever happens first.
Sometimes a court gives you more time. But you have to explain why you needed more time to ask for an equalization payment.
Marriage contract
If you signed a or a but one of you no longer wants to follow it, that person may ask the court for an order to set aside the agreement. This means the court allows them not to follow all or part of the agreement.
But the other person can ask the court to make an order that divides your property in the way you agreed to in your agreement.
The courts encourage people to decide their issues on their own. So if you have an agreement, the courts won't set aside your agreement easily.
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