The Common Sense Guide to:
How To Divorce In Ontario
How Do I get a Divorce?
Financially Smart Divorce Strategies
What’s Involved With Divorce In Ontario
1. Identify the Date of Separation
2. Financial Disclosure
3. Negotiate and Draft a Rock-Solid, Legal Separation Agreement
A Separation Agreement is the foundation of your divorce, and if you don’t get it right from the start, you’re setting yourself up for a world of hurt later. This is where you involve family law professionals: Mediators, lawyers and divorce financial experts.
Wise people understand that you don’t just write your Wills, Powers of Attorney, Adoption Papers, Trusts, House Deeds or other very important legal documents on the back of a Tim Horton’s napkin. Your Separation Agreement is a VERY important legal agreement and this isn’t just some casual document you can DIY after reading a few articles online.
This agreement covers everything that matters—how you’ll split your assets, manage support, and deal with parenting. And here’s the kicker: If it’s not done properly and legally enforceable, it’s not worth the paper it’s printed on.
A clear, smartly-negotiated and well-drafted separation agreement is your blueprint for the divorce. It covers all the big stuff—how you’ll split assets, handle support, and sort out parenting. It’s not just about being a legal document; it’s about being legally enforceable and binding. Get this right, and you’ll save yourself a world of pain down the road.
4. Hammer Out a Parenting Plan
5. Sort Out Child Support According to Guidelines
6. Sort Spousal Support Legally
7. Divide All Assets and Debts
8. Navigate the Tax Implications
9. Decide What Happens to the Matrimonial Home
10. Independent Legal Advice (ILA)
11. Apply for the Divorce Decree
12. Update Your Estate Planning Documents
The Nitty Gritty Details About Divorce In Ontario
What Do I Need to Know About Divorce in Ontario?
To legally end your marriage in Ontario, you must get a divorce. It’s not enough to just be separated and live apart, as this does not legally end your marriage.
Can I Remarry if I am Separated?
“Separated” means you’re “still married”… just not living together as a couple. “Legally divorced by decree” means that you are no longer married. You must be legally divorced before you can marry again.
Do I Need to Get a Divorce if We Are Common Law?
If you are a Common Law couple (living together), it doesn’t matter how long you have lived together—in Ontario, you are not considered legally “married,” therefore, you do not require a divorce.
You Do Not Need To Get A Divorce if You Lived Together
If you are in a common-law relationship, you do not need to get a divorce, although you may still require a Separation Agreement to deal with issues pertaining to children, support, and assets/debts.
How to Avoid A Messy Divorce
Seriously consider mediation before lawyer litigation
If at all possible, stay out of the Family Courts
Gather and organize your financial documents
Do your homework, understand how divorce works in Ontario
Is Separation and Divorce The Same Thing?
Separation and Divorce in Ontario are Two Separate Stages
First, while separating, you and your spouse are dealing with all of the issues, such as children, custody, taxes, support, homes, assets, pensions, debts, etc. These issues are dealt with in a Separation Agreement.
Once a Separation Agreement has been reached and a year of living separately has passed, you can go through the process of applying to the Ontario Courts for a Divorce Decree. Beware that the courts may reject your application for divorce if child support and other arrangements that should be dealt with in a Separation Agreement have not been prepared legally and properly.
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Choose the RIGHT solution!
Do you want to understand how Online Mediation can work for you? Book a free JOINT TELEPHONE CONSULT for you and your Spouse. We will gladly explain the entire process and its benefits.
How Much Does It Cost To Divorce in Ontario?
Divorce is a contract that will follow you around for the rest of your life, so it’s important to look at it as an investment in your future.
The question is: How much do you want to invest in order to divorce properly, while losing as little of your assets as possible paying for the process?
There tend to be two extremes of people: those that want to spend nothing on their Separation Agreement and those that seem willing to give away every penny they have and duke it out in litigation and family court.
If you plan to take your spouse to court, you are going to spend a minimum of $10,000 just to get in the door! The traditional litigation process is incredibly expensive, time-consuming, and emotionally draining. According to The Canadian Bar Association’s National Magazine,
“High fees put lawyers out of reach for a growing number of middle-income Canadians, who must then navigate a challenging and complex court system on their own.”
“Family litigation often devolves into a prolonged, adversarial process that drains both financial and emotional resources.”
“The current system’s inefficiency exacerbates the financial strain on families, who are already struggling with the emotional toll of separation.”
“The rising costs and prolonged timelines in family litigation leave many Canadians searching for more affordable and effective alternatives.”
Court tends to be the most expensive process, followed by litigation lawyer-led negotiations.
The most cost-effective way to separate and divorce in Ontario is through Family Mediation.
Do I Need to Use a Lawyer to Get a Divorce in Ontario?
No, you don’t need a lawyer to divorce in Ontario, but wisdom would dictate that you do. That said, you are not required to use a lawyer or other professionals to divorce in Ontario. Instead, consider how you can best use professionals to assist you in your process.
Some may not require a lawyer to lobby for them but may require financial assistance to divide assets. Consider retaining a mediator to help you negotiate without litigation. Still, wisdom would suggest that you get some solid legal direction involved somewhere in your process.
Why Is It Important to Have a Proper Separation Agreement?
Separation Agreements are taken seriously by the court. They are always reviewed, and any terms that are clearly unreasonable or not legal in Ontario will not be accepted. Kitchen Table and other half-baked agreements regularly get nullified because they were not prepared properly, because proper financial disclosure wasn’t done, or because one partner tried to pull the wool over the other’s eyes.
Courts regularly boot these agreements to the curb, leaving them not worth the paper they were written on. And because the courts got involved, those cheap Kitchen Table agreements end up becoming very, VERY expensive.
How do we make our own Separation Agreement?
You might be tempted to take family law matters into your own hands because you’re trying to save money. Maybe you don’t think your ‘case’ is particularly complicated. Perhaps you have a basic mistrust of lawyers and the legal system’s penchant for making everything more complicated than it need be. Or maybe you just don’t want to spend the money!
Hey, I hear what you’re saying. But consider this like a “warning on the cigarette packages.” Common sense says, “Do so at your own risk!” I’m saying you truly don’t know what you don’t know. And if you don’t know what you’re doing, there is a VERY good chance you will miss some really important things that will mess with you later and cost you even more money down the road.
They have a name for those homemade negotiations. They call them “Kitchen Table Agreements” because they’re fundamentally flawed Agreements that are often signed in the kitchen over a cup of coffee. Lawyers actually love them. But not because they work but because they know that the untangling of the mess Kitchen Table Agreements make will be profitable for Lawyers in the long run. Very profitable!
The Unofficial Rules of Divorce:
Divorce gets prickly, even in the most amicable situation
It’s often less about the legalities and more about the money
People make expensive mistakes because they don’t make a plan
Before you do anything, understand your rights, obligations & complexities
Do I need a reason to get a divorce?
Nope. The only legal reason you need for a divorce in Ontario is that you conclude that the marriage has broken down. Ontario law accepts that there has been a breakdown of your marriage if you can prove that you and your spouse have been separated for at least one year.
Can there be a divorce if only one of us wants it?
Yes. It is not necessary for both of you to want to end the marriage. After living separately for at least one year, the marriage can be considered “broken down,” and one of the spouses can apply for the divorce.
Can there be a divorce if only one of us wants it?
Either of you can apply, or you can make a joint application.
If I Buy Out The Matrimonial Home From My Partner, Do I Have to Pay Land Transfer Tax Again?
YES. Essentially, you are buying your spouse’s half of the house, and you will need to pay the Land Transfer Tax on that purchase. To give you an idea of the cost: Let’s say your Toronto home is worth $700,000, and you are buying out your spouse for $350,000. The Ontario provincial Land Transfer Tax on this amount would be $3,725, and the Toronto Land Transfer Tax would be $3,225. The total Land Transfer Tax you would pay on this amount is $6,950.
BUT there is an exception. Regulation 696 of the Ontario Land Transfer Tax Act allows for an exemption on this tax if “the transfer is in compliance with a written agreement of separation, pursuant to which the parties have agreed to live separate and apart.” This means that a properly prepared Separation Agreement could end up costing you much less than the Land Transfer Tax.
Can We Be Separated If We Are Still Living Under the Same Roof?
Yes. What fundamentally makes you “separated” is that you and your spouse have consciously agreed to separate and have “uncoupled.” In some cases, spouses can be considered separated even if they still live under the same roof.
What does this mean?
This is possible as long as it is clear that you are no longer living as a couple, and both parties understand this to be the case. If this is your situation, it will be up to you to prove it.
Divorce isn’t the end of the world, but it sure can feel like it when your finances are a mess.
You have to navigate the storm with clarity, a measure of legal fairness, and a plan that actually makes financial sense.
The Common Sense Divorce focuses on what really matters—keeping your family’s stability intact.
For more than 25 years you have witnessed Gail Vaz-Oxlade‘s trademark straight-up money wisdom, both on Radio and Television, most notably as host of TVs Till Debt Do Us Part, Princess and Money Moron. Gail is a best-selling Canadian financial author.
Divorce isn’t the end of the world, but it can sure feel like it when your finances are a mess.
You have to navigate the storm with clarity, a measure of legal fairness, and a plan that actually makes financial sense.
The Common Sense Divorce focuses on what really matters—keeping your family’s stability intact.
If We Try to Get Back Together, But It Does Not Work Out, Do I Have to Wait for Another Year?
Maybe. It’s a “No” as long as you don’t get back together for more than 90 days, or for several periods that add up to more than 90 days.
Can I Get a Divorce If I Am Not a Canadian Citizen?
Yes. You do not have to be a Canadian citizen to get a divorce in Canada. It also doesn’t matter if your marriage took place in another country. You can apply for a divorce in Ontario as long as you or your spouse has been residing here for at least one year.
What does this mean?
It means you may need to prove that your spouse’s home address or your home address is in Ontario.
Will I Have to Pay Taxes Because of My Divorce?
Maybe. One of the biggest reasons to have a legal and properly created Separation Agreement is for tax purposes. Often, as part of a Separation Agreement, various property, money, and asset transfers are made. Taxes, and which spouse will be responsible for them, will be a crucial part of how equalization payments or support payments are structured.
What does this mean?
Financial and legal professionals understand the Canada Revenue Agency (CRA) and the special tax rules that allow real estate, RRSPs, investments, and other assets to be transferred between spouses as part of a divorce settlement with minimal or no tax consequences.
Do we split our Canada Pension Plan (CPP) credits?
YES. When you divorce, your lawyer and financial professional will help you apply to CPP for a “division of unadjusted pensionable earnings” (DUPE). This is a division of the pension credits that the two of you earned while you were together.
What does this mean?
The CPP credits that you and your spouse earned for the time you were married are added together and then split evenly between you. If your spouse had more credits than you, this might help you qualify for a pension, or increase the amount of your pension if you already have one. Your Common Sense Divorce Team will help you with this.