In my previous post, I touched on the issue of changing
support obligations in light of the pandemic.
More and more, separating spouses are wondering how property
issues will be dealt with in light of the pandemic, particularly as
assets are dropping in value after separation. In Ontario,
we follow an "equalization" regime under the Family
Law Act. Broadly put, this means that spouses share in the
increase of their net worth for the duration of their marriage.
Generally, the spouse who had the greater increase of net worth
during the marriage would pay the other spouse one half of the
difference. For example, if Husband's net worth grew by
$100,000 during the marriage, while Wife's net worth grew by
$50,000, then Husband would owe Wife and equalization payment of
$25,000 (which is half the difference between $100,000 and
$50,000).
