The Matrimonial Home in a Divorce: What I Tell My Clients

As a family law lawyer, one of the first and most emotional questions clients ask me is what will happen to their home when they separate. The matrimonial home carries enormous emotional weight. It is the place where routines were built, where children took their first steps, and where a shared future was once planned. Because of this, the legal rules surrounding the matrimonial home often feel surprising and, at times, harsh. My goal is to help clients understand those rules clearly so they can make informed decisions and protect their long-term interests. 

Why the Matrimonial Home Matters 

Under the Family Law Act in Ontario, the matrimonial home is treated differently from every other asset. While most assets are shared only based on their growth in value during the marriage, the matrimonial home is fully shared regardless of its history. Even if you owned the house before the marriage, received it as a gift, inherited it, or paid all the expenses yourself, you still share the full value with your spouse at separation unless you have a valid marriage contract in place. 

What Makes the Matrimonial Home Legally Unique in Ontario 

Many clients are surprised to learn that they cannot deduct the value of the home from their net family property, even if they owned it on the date of marriage. That protection applies to most assets, but the law removes that deduction for the matrimonial home. While this may seem unfair, the legislation is clear and applies consistently. It also means that couples need to be aware of these rules before they buy a home together or move into a house that one spouse already owns. 

Possession Rights: Who Stays in the Home After Separation 

Possession of the home is a separate issue from ownership. Even if you are the sole owner, you may not be able to stay in the house after separation. Courts have the authority to grant exclusive possession to either spouse. When children are involved, priority is often given to maintaining their stability. This means the parent who has been the primary caregiver may be granted temporary exclusive possession regardless of legal ownership. 

Why a Marriage Contract or Cohabitation Agreement Is Critical 

The only way to legally change how the matrimonial home is treated is through a valid domestic contract. Without such a contract, the default rules apply every time. Marriage contracts and cohabitation agreements allow spouses to set out their own terms for dividing property, including the matrimonial home, in the event the relationship ends. These agreements can prevent financial surprises and protect significant assets for both parties. 

Updated 2025 Ontario Family Law Rules: What You Should Know 

Although the law regarding matrimonial homes has not changed, the 2025 updates to the Family Law Rules have strengthened disclosure obligations and processes surrounding domestic contracts. Courts expect more complete and precise documentation. Stronger disclosure requirements make it more difficult for spouses to hide assets, including real estate, business interests, and digital property. These changes do not alter how the matrimonial home is equalized, but they do affect how separation and divorce files proceed through the court system. 

Planning: Protecting Your Most Valuable Asset 

With Ontario housing prices continuing to rise, the matrimonial home is often the most valuable asset a couple has. Proper planning is essential. For couples entering a relationship where one spouse already owns a home, early legal advice is especially important. For clients going through separation, understanding your rights to property, equalization, and your financial future is critical. 

If you are facing separation or want to protect your home before issues arise, reach out to Jordan McKie at Lerners LLP to understand your rights, explore your options, and move forward with clarity, stability, and confidence.