Married couples are entitled to “equalize” their property upon separation. Ontario’s Family Law Act captures virtually all property under its scope, including business interests, shares, pensions, bank accounts, and trust interests, whether current or contingent. Some property is excluded from equalization, like gifts or inheritances. There is a completely different property division regime for common-law couples.

Ontario family law calculates income differently than the CRA. Determining income for child support or spousal support purposes can become complicated when a spouse is self-employed, or has deferred compensation like RSUs or PSUs that were previously subject to property division. Special attention must be paid in these circumstances to ensure an appropriate income is established for support purposes. The same rules apply whether spouses are married or not.

Business interests are subject to “equalization” under the Family Law Act for married couples. Valuing these interests to ensure a fair division can be complex, and usually requires collaboration with a team of qualified experts. Care must also be taken to ensure the operation of the business continues seamlessly throughout the separation process. Other considerations come into play for common-law couples.