SMP Law – Who Owns the Property?
Who Owns The Property?
In Ontario’s Family Law Act this refers not to who is on the title necessarily but rather to who shares in the value of the home when a relationship ends. Picture the following scenarios:
Scenario #1 – You Own a Property Prior to Marriage
You owned it before you were married so it’s yours if the relationship ends, right? Not necessarily. Once the property becomes the matrimonial home you share that value with your spouse.
Scenario #2 – Your Parents Contributed to the Downpayment
Your parents generously offered you a sum of money to contribute to your down payment for the house you were buying with your married spouse. It’s your money if the relationship ends because it was your parent’s gift to you, right? No. Without a marriage contract, once you put that money into the matrimonial home, it becomes shared between you and your spouse.
Scenario #3 – Your Received an Inheritance and Put it in the Matrimonial Home
The inheritance was from a grandparent or a parent to you and was received after the date of marriage, and you put it in your matrimonial home so it’s naturally yours if the relationship ends, right? No.
Scenario #4 – The Title of the Home is in Your Name
It does not matter. In the Ontario Family Law Act, if you are married and the home is in only one of your names, you still share the value of the home.
The Takeaway Message
Make sure you understand how your personal scenario will impact your matrimonial property division in the event of a relationship breakdown. Contact a lawyer who can advise you and offer suggestions on how you and your spouse can prepare for different scenarios involving your matrimonial property.
Contact us anytime at SMP Law to help SiMPlify your legal matter at 905-565-9494 or email info@smplaw.ca if you have any questions or would like to book an appointment to meet and discuss your situation and how we can help.
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