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How Does Inheritance Work Under Family Law in Ontario?

This is general information and should not be interpreted as legal advice. Contact a family law lawyer to understand your rights and obligations.

Inheritance can raise complex legal questions, especially when family relationships, separation, or death are involved. In Ontario, inheritance issues often intersect with both family law and estate law. Understanding how these systems work together can help individuals protect their interests and plan effectively.

Inheritance and Wills in Ontario

When a person passes away with a valid will, their estate is distributed according to the terms of that will. Ontario’s Succession Law Reform Act governs how wills are interpreted and enforced. The testator generally has the freedom to decide who inherits their assets, subject to certain claims that may arise from spouses or dependants. If there is no will, the estate is distributed under Ontario’s intestacy rules, which prioritize spouses and close relatives.

Married vs. Common-Law Spouses

A key distinction in Ontario family law is the difference between married and common-law spouses. Married spouses have property rights that arise automatically upon separation or death, including the right to an equalization of net family property. Common-law spouses do not have the same automatic property rights, even after many years together. However, common-law partners may still have claims through trust law or dependant support provisions under estate legislation.

Inheritance During a Marriage or Relationship

Under Ontario’s Family Law Act, inheritances received by one spouse during a marriage are generally considered excluded property and are not shared upon separation. This exclusion applies as long as the inheritance is kept separate and not mixed with family property. However, there is an important exception: if inherited funds are used to purchase or pay down a matrimonial home, that inheritance may lose its excluded status and become subject to division.

Separation, Divorce, and Inherited Property

When married spouses separate or divorce, the value of inherited property is typically excluded from the equalization calculation, provided it can be clearly traced. Proper documentation is critical. If inherited assets are commingled with joint accounts or used for shared expenses, tracing can become difficult, increasing the risk that the inheritance will be included in the property division.

Claims After Death

Even where a will exists, spouses and dependants may have the right to make claims against an estate. A surviving married spouse can choose between inheriting under the will or making a family law equalization claim. Additionally, spouses, children, and certain dependants may bring a dependant support claim if they were not adequately provided for.

Seeking Legal Support

Inheritance issues can have lasting financial and emotional consequences, particularly when family law considerations are involved. At Majoka Law, we understand how important it is to protect your rights while navigating these complex rules. Whether you are planning your estate, facing separation, or dealing with a loved one’s passing, obtaining tailored legal advice can make all the difference.