Certain assets can be excluded from equalization in Ontario under the Family Law Act. The following types of property are generally excluded:
Gifts and Inheritances: Property received as a gift or inheritance from a third party after the date of marriage, provided it has not been co-mingled with other family property.
Damages for Personal Injury: Compensation received for personal injuries, unless it has been used to acquire or improve family property.
Proceeds of Life Insurance: Proceeds from a life insurance policy, unless they have been used to acquire or improve family property.
Property Excluded by a Domestic Contract: Property that spouses have agreed to exclude in a valid domestic contract (e.g., a prenuptial agreement).
It is paramount to get the advice of a trained professional when it comes to property division as this area of the law is extremely complex and worth the value of legal advice.