METRAC Webinar
Property Rights and Obligations of
Married and Co-habiting Partners
January 19, 2012
12:00pm – 1:00pm
METRAC 158 Spadina Road, Toronto ON, Canada
www.metrac.org | info@metrac.org | Phone 416-392-3135
METRAC
METRAC, The Metropolitan Action Committee on Violence Against Women and
Children, is a not-for-profit, community-based organization that works to prevent
and end violence against women, youth, and children, across diverse communities.
METRAC’S Community Justice Program provides accessible legal information,
education, and training for women and service providers. It examines how
legislation and legal practices affect women from diverse backgrounds and
especially those experiencing abuse or violence.
www.METRAC.org
FLEW, The Family Law Education for Women campaign
information on women’s rights and options under Ontario family law
available in 14 languages, accessible formats, online and print
www.OneFamilyLaw.ca
Phone: 416-392-9138
METRAC Youtube: http://www.youtube.com/user/metracorg
METRAC Facebook: http://www.facebook.com/metracorg
METRAC Twitter: http://www.twitter.com/metracorg
Presenters
Tamar Witelson
Legal Director, METRAC
Robert Halpern
Family Law Specialist, Torkin Manes LLP, Toronto
Author of Property Rights and Obligations under Ontario Family Law
Division of Family Property in Ontario
Ontario Family Law Act, R.S.O. 1990, CHAPTER F.3
applies to married spouses, both opposite and same sex
guiding principles:
marriage is an equal partnership
assumes each spouse contributes equally to household,
child and financial responsibilities
result: each spouse entitled to
equal share of family assets/debts
at marriage breakdown
Equalization Payment
applies to the increase in couple’s property that occurred during the
marriage
deducted: property (minus debts) that each spouse owned on the date of
marriage (except the Matrimonial Home)
excluded: gifts that each spouse personally received during the marriage
(except the Matrimonial Home)
calculate Net Family Property for each spouse: total assets minus total
debts for each spouse at end of marriage
asset examples:
businesses, real estate (land, cottages, secondary or rental
properties), furnishings, bank accounts, pensions, cars
debt examples:
mortgages, bank loans, car loans, credit card balances, unpaid
income taxes
Equalization Payment (Cont’d)
calculation of Equalization Payment:
higher Net Family Property (spouse 1) minus lower Net Family
Property (spouse 2)
divide the difference by two (equals $X)
spouse 1 pays half the difference ($X) to spouse 2
Domestic Contracts: spouses can agree to exclude specific property
from the equalization calculation
violence or abuse: get legal advice before signing any agreement about
division of family property
Matrimonial Home
“Matrimonial Home” is the home ordinarily occupied by the spouses as the
family residence at the time of separation
there are special rules for the
Matrimonial Home in the
equalization calculation
the Matrimonial Home is included in the
property calculation of the spouse(s)
whose name is on the deed
if the Matrimonial Home was owned by
one spouse before the marriage, it is NOT deducted from that spouse’s
Net Family Property
Matrimonial Home (Cont’d)
if the Matrimonial Home was a gift to one of the spouses during the
marriage, it is NOT excluded from that spouse’s Net Family Property
the value of the Matrimonial Home at separation must be included in the
calculation of the Equalization Payment
both spouses have a right to live in the Matrimonial Home unless and until
there is a court order or agreement to the contrary
locks cannot be changed by one party without a court order or
agreement to the contrary
property cannot be sold without both spouses’ agreement
Presenters
Tamar Witelson
Legal Director, METRAC
Robert Halpern
Family Law Specialist, Torkin Manes LLP, Toronto
Author of Property Rights and Obligations under Ontario Family Law
Common Law or Cohabiting Partners
The Family Law Act rules for division of property do NOT apply to common
law or cohabiting partners
The Family Law Act does apply to common law partners for spousal
support
in Ontario, “Common Law” partners for support purposes are defined as
spouses who have lived together for at least three years or have a child
together and lived together in a relationship of some permanence
Common Law or Cohabiting Partners
(Cont’d)
the courts have made rules for the division of property between unmarried
cohabiting partners
factors the court considers:
long relationship
integrated finances
cooperation in running the household
cooperation raising children
leaving school or workforce for family
moving for one partner’s career
the court may order one partner to pay money to the other or divide
ownership of some family property between partners
Surviving Spouses
if wife or husband dies before his/her spouse, the surviving spouse has a
choice regarding family property:
1. if there is a will, accept the bequest of property according to the
will, OR
2. if there isn’t a will, accept the assignment of property according
to the rules for intestacy (no will), OR
3. choose division of property according to the equalization
calculation.
if division of property by equalization calculation (#3), payment to the
surviving spouse takes priority over will or intestacy rules
Where to Get Legal Advice
1.
consult a family law lawyer in private practice
recommended by a friend or support agency
Law Society of Upper Canada Referral Service www.lsuc.on.ca
toll free: 1-800-668-7380
2.
Legal Aid Ontario
online info from Family Law Information Program (FLIP)
http://legalaid.on.ca/data/hidden/FLIP_en/player.html
Family Law Information Clinics (FLICs)
http://www.legalaid.on.ca/en/getting/type_family.asp
Family Law Service Centres
http://www.legalaid.on.ca/en/contact/contact.asp?type=flsc
legal aid certificate for complex cases or if domestic violence is involved
www.legalaid.on.ca
3.
Community Legal Clinics
some specialty clinics, serving specific communities, may cover family law
issues
http://www.legalaid.on.ca/en/contact/contact.asp?type=scl
METRAC Webinar
Questions?
METRAC 158 Spadina Road, Toronto ON, Canada
www.metrac.org | info@metrac.org | Phone 416-392-3135
Presenters
Tamar Witelson
Legal Director, METRAC
Robert Halpern
Family Law Specialist, Torkin Manes LLP, Toronto
Author of Property Rights and Obligations under Ontario Family Law
Useful Resources
METRAC: www.METRAC.org
Ontario Women’s Justice Network: www.OWJN.org
Family Law Education for Women: www.OneFamilyLaw.ca
METRAC 158 Spadina Road, Toronto ON, Canada
www.metrac.org | info@metrac.org | Phone 416-392-3135