How marital property law works in Canada: A clear guide to fair division

How is marital property divided in a divorce?

When a couple divorces in Canada, the guiding principle of marital property law is that marital or family property should be shared equally between both spouses. This holds true regardless of who paid for the asset or whose name appears on the title. The goal is to ensure fairness in the division of a shared life built on combined efforts.

In some cases, courts may allow an unequal division based on the specific circumstances. These might include the length of the marriage, pre-existing agreements, significant debt load, or mismanagement of funds after separation.

At Fairway Divorce Solutions, we always begin with one foundational step: full financial disclosure. Both spouses provide a comprehensive list of assets and liabilities. This transparency sets the stage for meaningful discussions and informed decisions.

Family property generally includes all assets acquired during the marriage. That means homes, income, savings, business interests, and investments made while together. If the couple lived together in a common law relationship, the rules may vary depending on the province.

Certain types of property are considered excluded or exempt property when it comes to the division process, such as third-party gifts, inheritances, pre-marriage assets, civil settlements, or insurance proceeds. In some provinces however, these exclusions can lose their protection if they are mixed with joint assets—for example, depositing inherited funds into a joint account or using them to buy a shared home.

The treatment of asset growth or commingling also varies across provinces. Therefore, it is essential to understand the legal framework where you live before you begin the process of dividing property.

Why provincial rules make a difference

Each province and territory in Canada has its own legislation around property division, so the rules aren’t the same everywhere. The general principle of equal sharing of marital assets between a formerly married couple is consistent, but the details differ.

Some regions include common law couples, while others do not. The definition of “common law” may also vary between two to three years of cohabitation. Other differences include the date of valuation—some provinces use the date of separation, others the date of trial—and whether the family home can be excluded.

These regional differences can significantly influence outcomes. Relying on generic legal advice found online is risky. It's better to consult professionals familiar with your local regulations.

Managing complex assets like businesses and investments

Business ownership and financial investments are part of the marital property equation if they were acquired or grew in value during the relationship. But these assets come with added complications.

Valuing a business isn’t as simple as reviewing revenue. It may include goodwill, projected income, and proprietary systems or contracts. Investments, such as stocks or pensions, might fluctuate or carry tax liabilities. Some may also have limitations on transfer or withdrawal.

Fairway mediators work closely with accountants and valuators to ensure marital assets are fairly assessed and that the process of dividing property is fair to both parties. That way, both parties can move forward with confidence, even if the assets themselves aren't divided.

What about the family home?

The family home is often the largest—and most emotionally charged—asset. In most provinces, the home is considered marital property, even if one spouse owned it before the marriage. Whether any part of its value can be excluded depends on provincial law.

When it comes to decisions about the home, couples generally choose between one party buying out the other’s share, selling the home and dividing the proceeds, or continuing joint ownership for a period of time. Each option requires financial preparation and emotional consideration, especially when children are involved.

Fairway provides legal advice and helps clients evaluate these options with a focus on clarity and financial practicality.

What happens if someone tries to hide assets?

Transparency is the cornerstone of a fair property division process. If one spouse withholds information or hides assets, it can compromise everything.

If you're concerned about hidden assets, you can raise specific questions, request more documentation, involve a forensic accountant, or seek legal support. At Fairway, we encourage full disclosure from the outset and support clients in requesting information that might otherwise go unnoticed.

How the Fairway Method™ supports fair property division

The Fairway Method™ was designed to simplify the property division process, making it transparent, equitable, and efficient.

It starts with full financial disclosure of property acquired before and during the marriage and continues with guided discussions that explore different division options. Clients may consider keeping or selling the home, dividing retirement accounts, or issuing equalization payments. Each scenario is assessed for financial impact, tax implications, and long-term stability.

When needed, we connect clients with trusted professionals such as valuators, planners, or legal advisors. We also operate on a fixed fee model with a clearly defined timeline. Typically, our process resolves separations in about 120 days.

Fairway’s experience includes over 7,000 Canadian families. Our mediators help protect both your children and your financial interests while reducing stress and conflict.

Fairway Divorce Solutions was built on the belief that couples should never have to destroy their financial lives to end a relationship. With our structured method, experienced team, and client-first mindset, we help people separate fairly, peacefully, and with the confidence that life after divorce can be just as secure as before.

Frequently asked questions

What is considered marital property in Canada?

Marital property typically includes all assets acquired during the marriage, such as income, homes, investments, and pensions. Some provinces may also include common law relationships depending on local legislation.

What is excluded from marital property division?

Exclusions may include inheritances, gifts from third parties, assets owned before marriage, and certain insurance or legal settlement payouts. Whether or not this property remains excluded, if put into joint names, depends on the province.

Can marital property laws differ across provinces? 

Yes. Each province in Canada has its own rules, especially regarding common law rights, valuation dates, and treatment of excluded property and the family home. It’s important to use province-specific legal information.

How does Fairway Divorce Solutions support fair property division?

Fairway uses a structured method that includes full financial disclosure, scenario planning, and referrals to outside experts when needed. The process is transparent, efficient, and avoids litigation.

What if a spouse hides assets during a divorce?

Full disclosure is required. If there is concern about hidden assets, options include requesting documentation, forensic accounting, and court intervention. Fairway helps clients identify and address these issues early.