What is Excluded From Net Family Property in Ontario

Question:

What is not Family Property?

Answer:

The Act actually considers that certain property should be kept separate and not really become part of the family assets: 1) gifts from third parties, 2) inherited property from third parties, 3) income on the gift or inheritance if the third party so declared, 4) damages for personal injuries, 5) life insurance proceeds, 6) converted property from any of the above, 7) property that parties agree is to be excluded by agreement. When it comes to the matrimonial home, even in this section there are some special rules. Both #1 and #6 are subject to the matrimonial home exception. If a parent leaves a matrimonial home to a child, then it will not be excluded from the definition of family property. Also, if excluded property of whatever kind or nature is converted into a matrimonial home, then it will lose its excluded status. So, if $20,000 from a personal injury settlement is placed in a bank deposit, then converted into shares, later converted into bonds; it can still be traced and it is excluded. But, if at anytime, the money is used to renovate the kitchen, it loses its excluded status.