The Equalization Limitation Period Has Passed — Is the Jointly Owned House Still Half Each? Chinese-Speaking Mississauga Divorce Lawyer Miao He

These are two different questions. Once the limitation period for equalization has passed, a house that has been sold generally can’t be counted anymore. A house still in both names is a matter of title, not equalization: it remains half and half.

A client came to consult me. She and her spouse had been separated for many years, and the property issues had been left untouched. She asked: there is still one house in both their names, and other houses were sold after the separation. After all this time, can any of it still be divided?

The short answer: the houses that were sold and the house that remains are two separate accounts, and they don’t share the same fate.

1. Equalization Has a Limitation Period — Once It Passes, the Court Generally Won’t Hear It

Equalization is the equalization of the spouses’ net family property. There is a deadline for bringing it: six years after separation, two years after the divorce is granted, or six months after the first spouse’s death — whichever comes first. Once that deadline has passed, the court generally will not hear an equalization application. The only exception is special circumstances: if the court finds proper grounds, it may allow the application to be brought late. Whether an extension is granted is decided by the court on the facts of each case, and the threshold is not low — don’t rest your hopes on it.

2. A House Already Sold Can Only Be Counted Through Equalization — Once That Expires, It’s Gone

The house was sold and dealt with after the separation, and neither side objected or brought an equalization claim within the limitation period. Once that period has passed, the court will not go back and divide that house. If you want equalization, you must bring the claim within the limitation period — once it expires, that right is generally gone. If the period has already passed and you still want to try, there is one step available: bring a motion on the limitation issue alone, and ask the court to decide first whether it will extend the time. The court deals with the limitation question before anything else — if it extends the time, the equalization calculation proceeds; if it refuses, the equalization claim cannot go ahead. In a case that is already out of time, the first fight is not about how much is divided, but about whether the deadline can be extended at all.

3. A House Still in Both Names Is Title — the Equalization Deadline Doesn’t Touch It

As long as the house remains registered in both names, it belongs to both of you, half and half. That half comes from the title registration, not from equalization, so it makes no difference whether the equalization deadline has passed. There are three ways to deal with it: agree to sell the house and divide the proceeds according to title; have one spouse buy out the other’s half so the house belongs to one of you; or, if you can’t agree, apply to the court to have the house sold and the money divided according to title. That last route proceeds under property law, not equalization, and it is not governed by the equalization deadline.

So in a case that has dragged on for years, keep the two accounts separate. One is the equalization account, which has a deadline — once it passes, the door is generally closed. The other is the title account: a house in both names stays half and half, and it is never too late to deal with it. But while it sits there undealt with, the mortgage, taxes, and repairs keep running — so if it needs dealing with, start the conversation early.

FAQs

1. The equalization limitation period has passed. Does that mean I get nothing?

No. What is lost is equalization — houses already sold, money in accounts, anything that had to be divided through the equalization calculation generally can’t be claimed after the deadline. But a house still in both names is title, and it remains half and half, unaffected.

2. The sale proceeds have already been spent by my spouse. Can they still be counted?

It depends on whether you are still within the limitation period. If you are, then even if your spouse has already spent the proceeds, that money is still counted into his net family property as his asset and divided as part of the equalization. If the period has passed, the court generally won’t deal with it. To proceed at all, you first have to bring a motion on the limitation issue and let the court decide whether to extend the time. If the court extends it, the equalization calculation still goes ahead; if the court refuses, the matter won’t be revisited.

3. My spouse lives alone in the jointly owned house, won’t sell it, and won’t buy out my half. What can I do?

Negotiate first. If you can’t reach agreement, you can apply to the court to have the house sold and the proceeds divided according to title. Title says half and half, and that application doesn’t depend on the equalization deadline.

This article is general legal information, not legal advice, and does not create a lawyer-client relationship.