How Is the Matrimonial Home Valued in an Ontario Divorce?

Short answer: in an Ontario divorce, the matrimonial home is usually valued at its fair market value on the date of separation for equalization, and often again at today's value if one spouse is keeping it. For couples in Toronto, Hamilton and across Ontario, an independent appraisal gives both sides the same neutral number to work from.

How Does Property Division Work in an Ontario Divorce?

Ontario does not simply split every asset in half. Under the Family Law Act, married spouses each calculate their net family property: generally, what they own on the date of separation, minus their debts, minus what they brought into the marriage. The spouse with the higher net family property usually pays the other half the difference. This is called an equalization payment.

Because a Toronto or Hamilton home is often the largest asset a couple owns, its value can make a big difference to that payment.

Why Is the Matrimonial Home Treated Differently in Ontario?

The matrimonial home has special rules:

• It can be shared even if one spouse brought it into the marriage. With most property, a spouse can deduct what it was worth on the date of marriage, and some inherited property can be excluded. Ontario's matrimonial-home rules can change that: if the home is still the matrimonial home on the date of separation, its value can affect property division even if one spouse owned or inherited it before the marriage. A family lawyer can explain how this applies to you.
• Equal right to live there. Both spouses usually have an equal right to possession of the matrimonial home, regardless of whose name is on title, until a court order or agreement says otherwise.
• Restrictions on selling or mortgaging. Generally, one spouse cannot sell or mortgage the matrimonial home without the other's consent.

These rules can be complicated, especially if there is more than one home, so your family lawyer should explain how they apply to you.

Which Date Is the Matrimonial Home Valued At?

For equalization, the key date is generally the valuation date, which for most separating couples is the date they separated with no reasonable prospect of getting back together. If the separation was a while ago, the home is valued as of that past date with a retrospective appraisal. See Do we need a date-of-separation appraisal?

A second, current value is often needed as well:

• When one spouse is keeping the home and buying out the other
• When the home is being sold and you want a realistic expectation
• When a lawyer or mediator asks for both dates

Many couples order both values in a single report.

What About Common-Law Couples in Ontario?

Common-law couples are treated differently. Ontario's equalization and matrimonial-home rules generally apply only to married spouses, so common-law partners usually divide property based on ownership and other legal claims. A home's value is still often needed, but a family lawyer should advise on which date and approach apply.

Why Use an Independent Appraisal Instead of an Agent's Opinion?

When two people disagree about value, each side's agent may come back with a different number. A divorce appraisal is prepared by an independent, designated appraiser who works for neither spouse's interest. The report is prepared to the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP), explains the comparable sales used and can be shared with both lawyers, a mediator or the court.

Many couples agree to share one jointly instructed appraisal. It usually costs less than duelling reports and takes some heat out of the conversation.

How Much Does a Divorce Appraisal Cost?

Divorce appraisals are quoted individually, because the scope varies: one date or two, one property or several, and whether the report may be used in court. Send the address, the dates needed and who is instructing, and your exact fee is confirmed in writing within one business day, before anything is booked.

What you'll need

• The property address and the date (or dates) of value
• Contact details for both spouses or their lawyers, if the report is shared
• Access to the home, or photos if it has changed since separation

Related Articles

• Do we need a date-of-separation appraisal?
• Buying out your spouse: how is the price set?
• Retrospective appraisals in legal disputes

This article is general information, not tax, legal or financial advice. Please speak with your accountant, lawyer or lender about your situation.