Love and legalities — when financial heartbreak follows separation
Valentine’s Day is often a celebration of love and partnership — but for many, it can also serve as a reminder of relationships that have ended. When a marriage or common-law relationship breaks down, the emotional toll is often compounded by the legal and financial complexities of separation. One of the biggest concerns many people face is how property is divided — especially when the value of their assets changes after the relationship ends.
Under Ontario’s Family Law Act, property division is based on a fixed valuation date: the date of separation. This means that regardless of what happens to the value of an asset afterward — whether it rises or falls — equalization calculations are generally based on its worth at the time of separation.
However, there are rare exceptions. The courts have the discretion to adjust the division of assets if applying the rule as written would be “unconscionable” — but this is an exceptionally high legal standard to meet. In the landmark case Serra v Serra (2009), the Ontario Court of Appeal ruled that a drastic post-separation drop in a spouse’s business value warranted an adjustment. Even so, courts have rarely granted similar claims, even during major economic downturns like the 2008 recession or the COVID-19 pandemic.
To successfully argue for an unequal division of property due to market-driven losses, the financial impact must go beyond being merely “unfair” or “harsh” — it must “shock the conscience of the court.” In most cases, the law prioritizes finality and certainty over discretionary fairness, meaning that individuals are often left to bear the risks and fluctuations of the market on their own.
For those going through a separation, this can be a tough reality to face. If you’re concerned about how your assets will be divided, it’s important to seek legal advice early and understand your rights and options. At Ross & McBride, we guide our clients through the complexities of family law to help them achieve the best possible outcome.
If you have questions about your separation or property division, I encourage you to reach out.
This article was originally published by The Hamilton Spectator.
