Dividing property on separation in Canada: Ontario equalization, BC family property and Quebec's family patrimony
How Ontario equalization, BC family property, Alberta's Family Property Act and Quebec's family patrimony and parental union divide property.
How property is divided when a relationship ends depends on your province and on whether you were married. Ontario does not split assets; married spouses each calculate their net family property (NFP) and the spouse with the higher NFP pays the other half the difference (Family Law Act s. 5). British Columbia gives married spouses and unmarried partners of at least two years an undivided half interest in all family property on separation, with excluded property such as pre-relationship assets, gifts and inheritances (Family Law Act ss. 81 and 85). Alberta's Family Property Act divides property acquired during the relationship between married spouses and adult interdependent partners, with exemptions for some property brought in. Quebec applies the mandatory family patrimony to married and civil union spouses, and since 30 June 2025 a parental union patrimony to de facto couples who have a child born on or after that date.
Part of the overview of estate and family law costs. General information, not legal advice.
Ontario: equalization of net family property
Who it applies to. Married spouses only. Common-law partners have no equalization right; they rely on ownership, trust claims such as unjust enrichment, and support.
When it applies. On divorce, annulment, separation with no reasonable prospect of resuming cohabitation, or the death of a spouse when the deceased's NFP is higher (s. 5(1)–(2)).
How NFP is calculated, in outline:
- Value of all property owned on the valuation date (usually the separation date).
- Minus debts and liabilities on the valuation date.
- Minus the net value of property owned on the date of marriage (after debts then), except a matrimonial home still owned at separation, which cannot be deducted.
- Minus excluded property (s. 4(2)), such as gifts or inheritances from third parties received after marriage (and income from them if the donor said so), damages for personal injury, and life insurance proceeds, provided they can be traced and are not put into the matrimonial home.
- An NFP cannot be less than zero.
The spouse with the lower NFP is entitled to half the difference. A court may award an unequal amount only where equalizing would be unconscionable, for the reasons listed in s. 5(6).
Matrimonial home. Both spouses have an equal right to possession regardless of who owns it, and neither can sell or mortgage it without the other's consent or a court order. An inheritance put into the matrimonial home loses its excluded status.
Deadlines (s. 7(3)). An equalization application must be started by the earliest of two years after divorce, six years after separation, or six months after the first spouse's death.
Work it through in the equalization payment guide or the estimator.
British Columbia: Family Law Act
Who it applies to. Married spouses, and unmarried partners who lived in a marriage-like relationship for at least two years.
Family property is everything either spouse owns on the separation date, with excluded property listed in s. 85, including:
- property acquired before the relationship began;
- inheritances and gifts from third parties;
- certain injury settlements and insurance payouts;
- property held in trust for a spouse from those sources, and property derived from excluded property.
The increase in value of excluded property during the relationship is family property. The spouse claiming an exclusion must prove it. Family debt is shared too.
How it is divided. Each spouse has a right to an undivided half interest in all family property as a tenant in common (s. 81). Value is based on fair market value at the date of agreement or hearing (s. 87). A court can divide unequally if equal division would be "significantly unfair".
Time limits (s. 198). Claims to divide property, debt or pensions, or for spousal support, must be started within two years of a divorce order (or nullity order) or, for unmarried spouses, of separation. The clock is suspended while the spouses are in family dispute resolution with a family dispute resolution professional.
Alberta: Family Property Act
Alberta's Family Property Act (renamed from the Matrimonial Property Act on 1 January 2020) applies to married spouses and adult interdependent partners. Property acquired during the relationship is generally divided equally. Some property is exempt to the extent of its value at the start of the relationship or when received, such as gifts and inheritances from third parties, property brought into the relationship and certain damages awards. Growth in exempt property during the relationship is generally shareable. Limitation periods are short; check the Act or ask Legal Aid Alberta.
Quebec: family patrimony, matrimonial regime and the parental union
Family patrimony (married and civil union spouses)
The family patrimony is mandatory and cannot be waived in advance. It generally includes:
- the residences of the family (principal and secondary) or the rights in them;
- the furniture in them used by the family;
- motor vehicles used for family travel;
- pension rights accrued during the marriage, including RRSPs and public plan credits (Quebec Pension Plan earnings can be partitioned).
Excluded: property received by gift or inheritance, before or during the marriage. On separation, divorce or death, the net value is divided equally, after deducting debts incurred for these assets and the value contributed from before the marriage.
Matrimonial regime
On top of the family patrimony, married spouses are under a matrimonial regime: the default for marriages since 1970 is the partnership of acquests, which shares property acquired during the marriage. Couples can choose separation as to property in a notarial marriage contract.
Parental union (de facto couples)
The parental union regime applies automatically to de facto spouses who live together, present themselves publicly as a couple and become parents of a common child born on or after 30 June 2025. It creates a parental union patrimony of the family residences, furniture and cars used for family travel, generally divided equally when the union ends. Couples whose children were all born earlier can opt in by notarial act or a written contract signed before two witnesses. De facto couples without a qualifying child have no property-sharing regime.
Side-by-side
| Feature | Ontario | BC | Alberta | Quebec |
|---|---|---|---|---|
| Unmarried couples included | No | Yes, after 2 years | Yes, adult interdependent partners | Only parental union (child born on or after 30 June 2025) |
| Method | Money payment of half the NFP difference | Half interest in each family asset | Equal division of shareable property | Equal division of patrimony value |
| Gifts and inheritances | Excluded if traced and not in the matrimonial home | Excluded; growth is shared | Exempt at original value | Excluded from family patrimony |
| Pensions | In NFP; special valuation rules | Family property | Shareable portion | In family patrimony |
FAQ
Can we agree to a different split?
Yes, by marriage contract, cohabitation agreement or separation agreement, which must be in writing, signed and witnessed. Quebec's family patrimony cannot be renounced before separation.
Does fault matter?
No. Property division in all four provinces is about contributions and timing, not who ended the relationship.
What about debts in one person's name?
They reduce that person's NFP in Ontario and may be family debt in BC. Debts incurred after separation are generally the person's own.
Sources
- Ontario e-Laws — Family Law Act, ss. 4–7, Part II (matrimonial home)
- BC Laws — Family Law Act, ss. 3, 81–87
- Family Law in BC — property and debt on separation
- Legal Aid Alberta — family property help
- Gouvernement du Québec — parental union conditions and patrimony
- Éducaloi — family patrimony and matrimonial regimes
