How to Separate in Ontario | Family Law Tips on Separation

Disclaimer: This article aims to provide educational information surrounding separation. It is not intended to serve as legal advice. Consult with a lawyer and exercise your discretion before taking action based on the information provided in the blog.

Deciding to end a relationship is a profound and life-altering decision that comes with many emotional challenges. It’s natural to feel overwhelmed as you navigate what lies ahead—not just for yourself but for any children involved. Your life is undergoing significant change, which can feel like a heavy burden.

After years, or even decades together, it can be hard to figure out how to unravel everything you’ve built together. You might be asking, “Where do I even begin?”

Your separation comes with a range of practical and legal considerations that need to be addressed as soon as possible. In Ontario, the steps you take early in the process can significantly increase your chances for a smooth transition and protecting your financial interests.

Whether you are legally married or in a common-law relationship, the process of separation takes time. You are tasked with dividing your property and assets

This guide outlines some steps you should take when separating. We encourage you to contact our team to discuss your next steps and to better understand your rights and responsibilities moving forward.

Updating Your Estate Plan and Beneficiaries

One of the most important first steps when separating is to revisit your estate plan. If you were married, you likely named your spouse as a beneficiary on your will, life insurance, and RRSPs. These designations should be updated to reflect your new situation as soon as possible.

Wills: It’s recommended that you create a new will following separation. Suppose you pass away without an updated will or a court order in place.
Powers of Attorney: You may have also named your ex-spouse as your attorney in your powers of attorney, meaning they may be able to make decisions on your behalf if you’re unable to do so. This includes decisions about your finances, property, and personal care. Review and update both your Power of Attorney for Personal Care and Power of Attorney for Property so that these decisions remain in the hands of someone who aligns with your current wishes.
Beneficiaries: Change your beneficiary designations for all accounts, including RRSPs, TFSAs, and insurance policies. However, note that with certain pension plans, you may not be able to change your beneficiary immediately, depending on the pension provider’s rules.

To learn more about how your pension is handled during your divorce, please read this article.

Expert tip: Ask us for our recommendations for estate lawyers who can help align your estate plan with your separation or divorce.

Dealing with Benefits and Insurance

While we covered this in another article, you also need to think about your health insurance.

Health and Dental Benefits: If you were covered under your spouse’s health insurance plan, update your status with their insurance provider. Be aware that, in some cases, the benefits may be revoked immediately upon divorce, which can lead to gaps in coverage. Ensure that you explore private options for coverage if needed.

Life Insurance: Typically, you must maintain adequate life insurance to secure any child or spousal support obligations. While many people have life insurance through their employer, it may not provide enough coverage to ensure ongoing support payments in the event of death. If a life insurance policy covers your support obligations, you may not be able to change the beneficiary if it is tied to spousal support.

Learn more: In this article, we discuss how your benefits are impacted by your separation or divorce.

Take Steps to Financially Separate From Your Spouse

RESPs and Joint Accounts: If you have a joint RESP, consider dividing it at the source. This can be done by asking your financial advisor to open a secondary RESP and transferring 50% of the funds into the new account. Keeping a joint RESP after separation may cause issues, especially if there is no guarantee that both parties will continue contributing equally.

Joint Lines of Credit and Credit Cards: If you share a line of credit, you might want to contact your bank and request that both parties authorize any future usage. Similarly, it’s vital to discuss responsibility for any debts for joint credit cards or supplemental cardholders.

Expert tip: Monitor your credit reports after you separate to avoid any unexpected charges arising from your spouse’s financial decisions.

What to do with the Matrimonial Home During Your Separation and Divorce

The matrimonial home often carries significant emotional and financial weight during a separation. Whether you are staying in the home or selling it, there are key decisions to make.

Sever Joint Tenancy: In Ontario, many couples own the matrimonial home as joint tenants. Severing joint tenancy ensures that both parties have equal ownership and that the home is divided appropriately should one spouse pass away. This is a straightforward process but requires assistance from a real estate lawyer.
Home Insurance: If your home and car insurance policies are bundled together, you will need to separate them. Doing so ensures that both parties have adequate coverage and clarifies each person’s financial obligations.

Learn More: Click the links for a more in-depth look at each option, including selling your home or “nesting” (where the parties live apart but share a home for the children).

The Role of Cohabitation Agreements & Marriage Contracts in Ontario

Cohabitation agreements and marriage contracts are becoming more common in Ontario, particularly if you are entering into a second marriage or have significant assets you would like to protect.

Cohabitation Agreements: These agreements are particularly useful for couples who want to protect assets acquired before the relationship or plan for how property and finances will be divided in the event of separation. They are also helpful for couples with children from previous relationships.
Marriage Contracts: These are more common for people entering marriage later in life or those with significant assets they wish to protect. A marriage contract can specify how assets will be divided, including the family home, pensions, and other financial matters

While these agreements can save time and money if you separate, they are only as good as they are drafted. This means turning to qualified family lawyers, like ourselves, to ensure they are enforceable in Ontario.

Learn more about domestic contracts in this article.

Your First Step to Prepare for Separation: Contact Plat Simionati LLP

Navigating separation and divorce can be complex, but you don’t have to go through it alone. At Plat Simionati LLP, our team of family law experts is here to provide you with the strategic guidance and support you need during this challenging time.

These are just some of the ways we help families during separation and divorce:

Negotiating child support
Determining parenting arrangements
Finalizing your separation agreement
Working with a mediator
Recommending other professionals, such as an estate lawyer

We offer tailored legal advice to protect your rights. If necessary, we are also ready to go to court to defend your interests.

First Steps to Take When You Decide to Separate in Ontario