“The law on the equalization of net family property begins with sections 4 and 5 of the Family Law Act, R.S.O. 1990, c. F.3, which provide the framework for settling property issues between married persons. The steps involved in this framework were summarized by Justice Barnes in Perri v. Perri, 2016 ONSC 5833 at para. 90:
Step 1: Determine the net family property of each spouse under section 4. To determine the net family property these questions must be answered:
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- What property did each spouse own on valuation day?
- What is the value of that property after making deductions and allowing exemptions permitted under section 4?
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Step 2: Determine whether one spouse’s net family property is greater than the other. Under section 5(1) this difference is equalised by ordering that one half of the difference must be paid to the spouse with the lower net family property. This is subject to Step 3
Step 3: Before making an order under Step 2, the court must determine whether it will be unconscionable to equalize the net family properties. Considerations to consider in making this determination are listed in section 5(6)”