How is property divided on divorce in Canada?
Most provinces use an equalization of Net Family Property model. Each spouse calculates their NFP (assets minus debts minus pre-marriage property), and the spouse with the higher NFP pays the other half the difference. The matrimonial home has special rules — it cannot be deducted as pre-marriage property.
Are gifts and inheritances divided on divorce?
Gifts and inheritances received during marriage are generally excluded from Net Family Property, but only if they were kept separate and not co-mingled with family assets. If you deposited an inheritance into a joint account or used it to pay down the matrimonial home mortgage, it may lose its excluded status.
What happens to the matrimonial home?
Both spouses have equal possession rights to the matrimonial home regardless of whose name is on title. The home's full value is included in NFP — you cannot deduct its pre-marriage value. Courts can award exclusive possession to the spouse with the children.