Can I keep assets I owned before marriage?
Generally yes — pre-marital assets can be excluded from the equalization calculation. But the exclusion must be properly documented, the assets must be traceable, and they must not have been commingled with marital property. The matrimonial home is a critical exception: its pre-marital value cannot be deducted.
Key Points
In most cases, yes. Assets you owned before the marriage can be deducted from your NFP calculation as pre-marital property.
However, the exclusion requires careful documentation and tracing. And the matrimonial home is a major exception: even if you owned it before the marriage, its full current value is included in your NFP.
Detailed Answer
Under Ontario Family Law Act, the value of property owned at the date of marriage is deductible from a spouse NFP. This means that pre-marital assets — cash, investments, real estate, business interests — are generally not subject to equalization.
However, the exclusion comes with important conditions. First, the asset must be properly valued as of the date of marriage. This requires documentation — bank statements, investment account records, property appraisals — from the date of marriage. If you cannot document the value at marriage, you cannot claim the deduction.
Second, the asset must be traceable. If pre-marital funds were deposited into a joint account and intermingled with marital funds in a way that makes it impossible to identify what came from where, the exclusion may be lost.
Third, the matrimonial home is categorically different. Under the Family Law Act, even if one spouse owned the matrimonial home before the marriage, the pre-marital value cannot be deducted from their NFP. The full value of the home at the date of separation is included. This is one of the most significant and surprising aspects of Ontario family law for clients who owned a home before marrying.
If you have significant pre-marital assets, it is critical to document them properly and seek legal advice early. Contact Miao He at 647-930-6688.
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