Ontario Equalization Payment Estimator (Family Law Act s. 5)

Under section 5 of Ontario's Family Law Act, when married spouses separate with no reasonable prospect of reconciling (or divorce, or one spouse dies), the spouse whose net family property (NFP) is lower is entitled to one-half of the difference between the two NFPs. The property itself is not split; one spouse pays the other money.

How to get the input. For each spouse, NFP is roughly: the value of property owned on the valuation date, minus debts on that date, minus the net value of property owned on the date of marriage, minus excluded property such as gifts or inheritances received from third parties during the marriage. Two exceptions matter most: a matrimonial home owned on the marriage date cannot be deducted, and an NFP cannot be less than zero. Enter the higher NFP minus the lower NFP.

Worked example (illustrative). Spouse A's NFP is $500,000 and spouse B's is $200,000. The difference is $300,000; B is entitled to 50%, an equalization payment of $150,000 from A. Afterwards each has $350,000 of NFP.

Limits. Real files turn on valuation dates, pension valuations, tax on RRSPs, disposition costs and unequal-division claims under s. 5(6). Limitation periods are short: two years after a divorce, six years after separation and six months after a spouse's death. Get legal advice before signing anything. The tool does not apply in BC, Alberta or Quebec, which use different regimes.