What is a Matrimonial Home in Canada?
An in-depth look at the definition of a matrimonial home and its criteria according to Ontario law.
A matrimonial home is defined as any property in which either spouse has an interest and which is, or was at the time of separation, “ordinarily occupied by the person and his or her spouse as their family residence.” This definition, outlined in Section 18(1) of the Family Law Act (FLA), includes the possibility of more than one property being designated as a matrimonial home. If a couple routinely uses a secondary property, such as a cottage, for family purposes and it was in use at the time of separation, it qualifies as a matrimonial home. However, if a secondary property is predominantly used by one spouse, it may not be regarded as a matrimonial home under the act.
Section 28(1) of the FLA stipulates that provisions concerning matrimonial homes only apply to properties within Ontario. Thus, family homes outside the province do not receive special treatment as matrimonial homes and are treated as any other family property. Couples can designate a specific home as their matrimonial home through registration with the land registry office. If both spouses agree on this designation, any other properties that would have been considered matrimonial homes will cease to be such under the Section 18 definition. Conversely, if only one spouse designates a property, additional properties used as matrimonial homes will retain their status. Both spouses can later revoke the matrimonial home designation, causing the Section 18 definition to reapply if it still meets the criteria.
In cases where the matrimonial home is situated on a property with mixed uses, like farmland or a business location, only the portion reasonably regarded as necessary for residential enjoyment is considered the matrimonial home, as indicated in Section 18(3) of the FLA. Additionally, if one spouse holds a majority share in a corporation that owns the residential property, that spouse is deemed to own the home for purposes of the FLA.
During the period leading up to a separation, couples might spend more time in separate residences. For instance, one spouse might primarily stay at a cottage or condo while the other remains at the family home. When separation occurs, such secondary properties might appear to be used solely by one spouse and not qualify as family residences. However, a 2009 Ontario Superior Court case determined that extensive use of a property as a family home earlier in the marriage can take precedence over infrequent use during the relationship’s decline.
In Ontario, the treatment of a matrimonial home under the equalization process differs from other assets. The home’s value at marriage is never deducted from a spouse’s net family property (NFP), regardless of whether the spouse owned it at the time. Instead, its value is always included in the valuation date assets of the spouse owning the home or divided if jointly owned. This inclusion inflates the homeowner spouse’s NFP compared to if the home were deducted as a date of marriage asset. The Section 18 definition clarifies that only homes ordinarily occupied as family residences at separation qualify as matrimonial homes. Homes once regarded as matrimonial homes but not occupied at the valuation date receive no special treatment and their value is part of the date of marriage assets.
Protection for matrimonial homes includes the stipulation that neither spouse can sell or encumber an interest in the home without the other’s consent or a court order, unless rights are waived in a separation agreement. If a spouse wrongfully alienates the home, the court can annul the transaction if the purchaser was unaware of its status as a matrimonial home and acted in good faith, as per FLA Section 21(2).
Possession rights over the matrimonial home are separate from ownership. Section 29(1) states that both spouses have equal rights to possess the matrimonial home, even if it is solely owned by one spouse. The non-owning spouse’s right is personal against the owning spouse and continues through the marriage’s duration, extendable by court order or separation agreement. Spouses can apply for exclusive possession of the home under Section 24(1), regardless of ownership status. Courts may grant exclusive possession, temporary or permanent, but such orders are rare due to their drastic nature. Factors such as violence, intolerable living conditions, or financial inability to secure alternative accommodation typically prompt these orders.
Criteria for exclusive possession are detailed in Section 24(3) of the FLA, including the best interests of any children involved, existing family property and support orders, the financial positions of both spouses, written agreements between parties, availability of alternative accommodation, and instances of violence. Moreover, Section 24(4) directs courts to consider the potential disruption of a child’s life and the child’s preferences where ascertainable in evaluating the best interests of the child.
Understanding and applying these definitions and criteria ensures legal clarity for couples regarding their matrimonial homes. This legal framework in Ontario provides structured guidance on the allocation and rights associated with properties considered matrimonial homes.