Understanding Post-Separation Adjustments in Ontario Family Law: What You Need to Know.

Separation is not just an emotional transition—it's also a complex financial one. Many separating spouses in Ontario believe that once they calculate their Net Family Property (NFP) as of the date of separation, the financial picture is complete.

But that's not always the case.

In certain circumstances, one party continues to make financial contributions after the separation date—toward joint debts, the matrimonial home, or other shared obligations. This is where post-separation adjustments come into play.

At OneLegal Professional Corporation, we often help clients understand and claim these adjustments to ensure fair outcomes in their family law matters. Here’s what you need to know.

What Are Post-Separation Adjustments?

Post-separation adjustments are financial modifications made after the date of separation to account for changes in the value of assets, debts, or additional contributions by either spouse.

These adjustments are separate from the equalization process under Ontario’s Family Law Act, which is based on the valuation of property and debts as of the separation date.

✅ Legal Reference: Alalouf v. Sumar, [2017] O.J. No. 2685.

When Do Post-Separation Adjustments Apply?

Post-separation adjustments are relevant when:

• One spouse continues to pay the mortgage, taxes, or maintenance on the matrimonial home after separation.

• A spouse contributes to joint debts while the other does not.

• There’s a significant increase or decrease in the value of an asset (e.g., business, investments) after separation due to one spouse’s sole effort.

Courts may consider whether one spouse would be unjustly enriched or the other unfairly burdened without an adjustment.

✅ Example: In Higgins v. Higgins, the court found it would be unconscionable for the non-occupying spouse to benefit from mortgage payments made solely by the occupying spouse post-separation.

How Do Courts Decide on Post-Separation Adjustments?

Ontario courts look at whether a post-separation contribution creates an unfair or unconscionable benefit for one party. The goal is to ensure fairness—not a windfall.

Important factors include:

• Who paid what after separation

• Whether payments were voluntary or obligatory

• The intention behind the payments

• The benefit received by the other spouse

✅ Legal Reference: Little v. Little, [2024] O.J. No. 2969

The Importance of Evidence and Procedure

Post-separation adjustments are not automatic. You must:

1. Explicitly raise the issue in your pleadings.

2. Provide detailed evidence—including testimony, receipts, financial statements, and correspondence.

The court will not assume adjustments should be made unless they are clearly and persuasively argued.

✅ Case in Point: In Bakhshi v. Hosseinzadeh, the trial judge accepted the wife’s evidence on post-separation payments because her claims were supported by credible documentation.

Are Post-Separation Adjustments Handled at Trial?

Yes—these claims are typically resolved at trial, not in preliminary hearings. Courts need a full evidentiary record to assess whether an adjustment is warranted.

Notable cases where this was considered include:

• Lazarevic v. Lazarevic

• Laing v. Mahmound

• Silver v. Silver, [2015] O.J. No. 3912

These decisions highlight the importance of meticulous preparation and experienced legal representation.

Key Takeaways

• Post-separation adjustments address contributions made after the date of separation.

• These are separate from the equalization of Net Family Property.

• Courts evaluate claims based on fairness and unconscionability.

• Parties must raise the issue in court and present strong evidence.

• These adjustments can make a substantial difference in your financial outcome.

Let Us Help You Protect What You've Worked For

At OneLegal Professional Corporation, we understand that financial fairness doesn’t end on the date of separation. If you’ve made payments or contributions after your separation, or if your ex-spouse is claiming post-separation expenses unfairly, we can help you assess your rights and build a strong case.

📞 Book your free 30-minute consultation today and let’s ensure your separation settlement truly reflects your financial reality.