The Money Smart
Divorce Solution

Legal, Binding & Enforceable Separation Agreements

Gail Vaz-Oxlade's Guide To

For more than 20 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 multiple time, best-selling financial author, and one of the top Canadian authors of the past decade. Gail brings her common sense wisdom to answer your questions about separation and divorce in Ontario.

 

Gail Vaz-Oxlade's Guide To

For more than 20 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 multiple time, best-selling financial author, and one of the top Canadian authors of the past decade. Gail brings her common sense wisdom to answer your questions about separation and divorce in Ontario.

Gail Smile Transparent

Why Do I need a 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.

What does this mean?

“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 in Ontario.

What does this mean?

This means that you do not need to get a divorce in Ontario from your common law spouse BUT you may still require a Separation Agreement to deal with issues pertaining to children, support and assets/debts.

GENERATE YOUR SEPARATION ANALYSIS REPORT

Every couple faces unique challenges.
Understand how separation will affect you,
your children, your finances and your future.

DO NOT BEGIN NEGOTIATIONS UNTIL

How do I get divorced in Ontario?

Separating 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 and 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.

What To Expect When You Call The Common Sense Divorce

Separation Agreement

Not everyone is ready to talk with someone in person.  You can call the Common Sense Divorce at anytime and hear a pre-recorded 2 min message about our services.

We will gladly take the time to speak with you about our services and the divorce process in Ontario.  The Common Sense Divorce offers a free 20 min telephone assessment and consultation.

We understand that this is a difficult time and calling us is a big step.  We are going to work hard to make this phone call easier, make you feel at ease and make sure that we respect your privacy.

We understand that you may be just researching and have not made any decisions.  We do not assume that because you are calling, that this means you are divorcing.

How Much Does Divorce Cost?

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. The answer: How much do you want to invest in order to divorce properly? 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. There tends to be two extremes of people. Those that want to spend NOTHING on their Separation Agreement and those that seem to be willing to give away every penny they have and duke it out in litigation and family court. There are, of course, needs to be a” the middle.”

Do I need to use a Lawyer or Professionals to get Divorced?

This is similar to asking, “Do I need to go to a Doctor if I break my arm? No you don’t but wisdom would dictate that you do.  Saying this, 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 your assets.  Consider retaining a mediator to help you negotiate without litigation.  Still, wisdom would dictate that there be some solid legal direction that gets involved somewhere in your process.

What does this mean?

Separation Agreements are treated seriously by the court. They are always reviewed by the court 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.

Divorce in Ontario

Can’t we just 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!

What Do I Do First? What Do I Do Next?

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CONSULTATION
Free Telephone Assessment

Our telephone Assessment Consultation will help you better understand your situation, clarify information & help you plan your next steps.

-3-
ORGANIZE
Prep & Planning Session

First meeting: a personalized Orientation & Prep Session to share your story, talk about your finances and get prepped to move forward.

-4-
AGREEMENT
Mediation That Fits Your Situation

Numerous mediation bundles to fit your situation that include your mediator and the financial and legal services, to save you time, money and drama.
divorce ontario

Do I need a reason to get a divorce?

Nope. The only legal reason you need for a divorce 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. If after living separate for at least one year, the marriage can be considered as broken down and one of the spouses can apply for the divorce.

Who can apply for the divorce in Ontario?

Either of you can apply, or you can make a joint application.

 

If I buy out our home from my partner do I have to pay Land Transfer Tax again?

YES. In essence, you are buying your spouse’s half of the house and you will have to pay the Land Transfer Tax on that purchase. To give you an example of how much this is… 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 is $3725 and the Toronto Land Transfer Tax on this amount is $3225. The total Land Transfer Tax you will pay on this amount is $6950.

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.” It means that a properly prepared Separation Agreement will likely cost you much less than the Land Transfer Tax.

Can we be separated if we are still living under the same roof?

Yes. Fundamentally what makes you “separated” is that you and your spouse have consciously agreed to separate and have “uncoupled.” In some circumstances, spouses can be considered separated yet apart even though they still live under the same roof. 

What does this mean?

This is possible as long as they are blatantly no longer living as a couple and both parties understand this to be true. If this is your situation, it is up to you to prove it.

 

 

Make Smart
Money Decisions
I'm not sure what to do?
I've never managed the money...
How do I plan for MY future?
Bag Lady Syndrome
(syn) or 'Street Guy Syndrome'
NOUN - The fear that one will become financially destitute after a divorce.
Family Mediation with a Financial Twist
“For most people divorce is less about legalities and more about finances, tax implications and making smart money decisions. This is why we started The Common Sense Divorce." – Gail Vaz-Oxlade

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 a period of 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 does not 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 might have 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 you want to a legal and properly created Separation Agreement is for Tax reasons. Often as part of a Separation Agreement, various property, money and asset transfers are made. Taxes and which spouse is going to have to pay them will be a huge part of how equalization payments or support payments are made.

What does this mean?

Financial and legal Professionals understand 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 so that there are no or minimal tax consequences.

Divorce in Ontario

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.

RESEARCHING?

Separation Agreements

Spousal Support

Family Mediation

Child Support

Amicable Divorce

The Divorce Process

The Matrimonial Home

Certified Divorce Financial Analyst

Same Sex Divorce

Divorce And Your Money

Pension Valuations

Divorce and Taxes