Property Division Calculator

The Divorcepath property division calculator helps you calculate the equalization of net family property following a separation or divorce. By entering each party's assets, liabilities, and excluded property, the calculator determines the equalization payment that may be owed from one party to the other.

This guide explains how to open the Family Property Calculator, enter your financial information, and understand your results. The examples use an Ontario matter, Cynthia Myers and Anthony Campbell.

Getting Started

To open the property division calculator:

1. Open the matter and go to Calculations > Family Property. You can also click Open on the Family property card on the matter's Calculations page.
2. The Family Property Calculator opens with the property and debts already recorded for the matter. Use Select Client at the top to switch to another matter.
3. Choose a View Mode. The Comparative View shows the value each spouse assigns to every item, side by side. The Individual View shows one spouse's valuation with the date of marriage and valuation date values next to each other.

There is nothing to name or save. All data is saved automatically to the client profile and is used in court forms, financial statements, and agreements when you create documents from the matter.

The table has two sets of columns. Cynthia's Valuation and Anthony's Valuation each show the value of the item that belongs to each spouse, according to that spouse. Where the parties agree, the figures match; where they disagree, enter each spouse's figure in their own columns and the calculator works out the result both ways.

Key Dates

Property division calculations require two key dates:

• Date of marriage (or cohabitation) — used to determine the value of property each party brought into the relationship. Property owned at this date may be deducted from the party's net family property as a "deduction" (sometimes called a pre-marriage deduction).
• Date of separation (valuation date) — the date on which assets and liabilities are valued for the purpose of calculating net family property. In Ontario, this is referred to as the "valuation date" and is defined by the Family Law Act.

The calculator uses the date of marriage and valuation date recorded on the matter, so make sure both are entered accurately, as they directly affect the calculation. The drop-down at the top left of the table controls which values you are entering: Valuation Date, Marriage Date, Acquisition Date, or Current Value. For unmarried partners, where provincial law gives them property rights, the calculator works with the cohabitation date instead of a marriage date.

Adding Assets

Enter all assets owned on the valuation date. Each category has a + New button: click it, type a description, and enter the value in each spouse's columns. Use the menu (⋮) next to an item to edit its details, including ownership (Client, Ex, or Joint), the date it was acquired, and whether it has been disposed of. Assets are grouped as follows:

• Land & Real Estate — the Matrimonial Home, plus other Real Estate such as rental properties, cottages, or land. Enter the fair market value as of the valuation date.
• General Household Items & Vehicles — vehicles, household contents, other household items, and jewellery. Use the fair market value, not the original purchase price.
• Bank Accounts, Savings, Securities & Pensions — bank accounts, shares, bonds, pensions, and other financial assets such as RRSPs, TFSAs, RRIFs, and non-registered investments. Enter the balance or market value as of the valuation date. Pension valuation can be complex; a pension valuation report from an actuary may be required.
• Life & Disability Insurance — for example, the cash surrender value of whole life or universal life insurance policies.
• Business Interests — the value of an interest in a business, partnership, or professional corporation.
• Money Owed to You — receivables and debts owed to a spouse.
• Other Property — anything that does not fit another category.

Switch the drop-down to Marriage Date to enter what each item was worth on the date of marriage. Date of marriage values are deducted from net family property, reflecting what each party brought into the relationship. In Ontario, record the matrimonial home and its mortgage in the Matrimonial Home and Matrimonial Home Mortgage categories so they are left out of the date of marriage deduction.

Adding Liabilities

Next, enter all liabilities (debts) owed by each party as of the valuation date in Debts & Liabilities, using + New in the relevant category:

• Mortgage and Matrimonial Home Mortgage — the outstanding balance on any mortgage secured against real property.
• Vehicle Loan — outstanding amounts on auto loans.
• Line of Credit, Credit Card, and Overdraft — outstanding balances.
• Student Loan and Business Loan — outstanding education and business debt.
• Support Arrears — unpaid support owing.
• Other Loan and Other Debt — for example, amounts owed to family members or to the Canada Revenue Agency.

As with assets, you can enter both the date of marriage and valuation date values for each liability where applicable.

Excluded Property

Certain types of property may be excluded from the equalization calculation. Excluded property is not counted as part of a party's net family property. Common examples include:

• Gifts and inheritances — property received as a gift or inheritance from a third party during the relationship, provided it was kept separate and can be traced.
• Insurance proceeds — certain life insurance proceeds or personal injury awards.
• Property excluded by agreement — property that a domestic contract (such as a marriage contract or prenuptial agreement) specifies is excluded from equalization.

To add excluded property, click + New in the Excluded Property category, enter a description, and enter the excluded amount in the owner's columns. Keep the asset itself in its usual category: the calculator counts it in net assets and then subtracts the excluded amount. In the example, Cynthia's $48,000 GIC is listed under Other Financial Assets and her $48,000 inheritance is entered under Excluded Property. Note that the rules around excluded property vary by province and can be legally complex. If you are unsure whether a particular asset qualifies as excluded property, consult a family lawyer.

How Equalization Is Calculated

The calculator determines the equalization payment using the following steps:

1. Calculate each party's net family property (NFP):
   • Total value of assets on the valuation date
   • Minus total liabilities on the valuation date (together, these give Net Assets)
   • Minus excluded property
   • Minus the value of property brought into the marriage (date of marriage deductions)
   • Equals net family property (NFP). The calculator does not let net family property fall below zero.
2. Determine the difference: Subtract the lower NFP from the higher NFP.
3. Calculate the equalization payment: The party with the higher NFP owes the other party one-half of the difference. This is the equalization payment.

The goal of equalization is to ensure that both parties share equally in the wealth accumulated during the relationship. The party with more net family property pays the other party enough to equalize the difference.

Viewing Your Results

The results appear at the bottom of the calculator and update automatically as you make changes:

• Net Family Property Calculation — each party's net assets, exclusions, date of marriage deductions, and net family property, under each spouse's valuation.
• Equalization Payment — who pays, and how much, under each spouse's valuation.
• Professional Notes — reminders about matrimonial home treatment, date of marriage values, and excluded property.

In the example, Cynthia's NFP is $305,640 and Anthony's is $375,670 on Cynthia's valuation, so Anthony pays $35,015. On Anthony's valuation, which puts a lower value on the home and his vehicle, Anthony pays $32,265.

You can review and adjust your entries at any time.

Generating Reports

To download the property division calculation, click the download button at the top right of the calculator, next to Select Client, and choose PDF report or Excel workbook.

Tips for Accurate Calculations

• Use accurate valuations. The accuracy of your equalization calculation depends on the accuracy of your asset and liability valuations. Use professional appraisals for real estate, pensions, and business interests where possible.
• Account for all property. Ensure that all significant assets and liabilities are included. Omitting property will produce an inaccurate result.
• Track the date of marriage values. If a party owned property before the marriage, the date of marriage value serves as a deduction and can significantly affect the equalization calculation.
• Consider tax implications. Some assets (such as RRSPs or capital property) may have embedded tax liabilities that reduce their true value. You may wish to account for these when entering valuations.

Need Help?

If you need assistance using the property division calculator, our support team is available by email or in-app chat. For legal advice about property division in your situation, we can refer you to a family law lawyer in your area. Please feel free to contact us.