Avoiding common mistakes in asset division during divorce

On Behalf of | Jun 24, 2024 | Family Law |

Divorce isn’t easy, and figuring out who gets what can be the most complicated part. If you’re in Ontario, knowing how property division works and watching out for common slip-ups are vital to reaching fair outcomes.

Understanding property division in Ontario

In Ontario, the law aims to divide property fairly between spouses upon divorce.

Generally, the process involves categorizing property, assigning values, and splitting assets and liabilities equally. Parties also calculate the equalization of net family property payments that one person owes the other.

This might seem easy, but splitting up property in a divorce can be tricky. Sometimes, certain things are not eligible for division. Also, when you mix together different kinds of property or feelings get involved, it can make the process much harder.

Property division pitfalls to be aware of

Because of how thorny this process can be, it’s not uncommon for people to make mistakes. Some of the more common missteps people make include:

  • Concealing assets: It is illegal to hide, undervalue or otherwise misrepresent assets on legal documents. Doing so can result in penalties or an unequal division favouring the other spouse.
  • Overlooking property: Parties must account for all assets, including pensions, investments and business interests.
  • Making decisions without legal advice: Agreeing to anything before seeking legal counsel can lead to costly oversights, unenforceable terms or unfair settlements.
  • Ignoring marital agreements: These contracts can dictate the division of assets, and parties must comply with them unless proven invalid.
  • Neglecting professional financial help: A financial advisor can provide invaluable guidance regarding sophisticated assets and economic factors.

Remember, honesty and clarity are key. Being informed, forthcoming and accurate in these matters can go a long way in ensuring your settlement is fair.

Finding security in future financial standing

Navigating the complexities of asset division during an Ontario divorce doesn’t have to be overwhelming. By being aware of common mistakes and seeking professional advice, you can move past this chapter and toward a new future with a fair divorce settlement.